Fondazione Social Venture Giordano Dell’Amore

Impact Investing

What is Impact Investing

It represents a particular model of our approach to impact investments and the institutional, capacity building and advisory activities we carry out.

The term impact investing refers to the realization of investments in start-ups, companies and funds, linked to measurable and intentional social objectives and capable, at the same time, of generating an economic return for investors: it is therefore representative of those investments with a social impact that, in various forms, are placed in an intermediate territory between philanthropy and sustainable investments.

Comparing approaches
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Tradizional
finance

Investments in listed or private companies with pure financial return objective

(SRI) RESPONSIBLE
INVESTMENTS

Portfolio exclude companies that prov harmful to the environment or society

(ESG) SUSTAINABLE
INVESTMENTS

Valuation and selection of investments based on ESG criteria

FINANCE FIRST

Investments targeting market returns and positive social impact

IMPACT FIRST

Investments seeking capital preservation or below market returns

PHILANTROPY

Grants and donations, capital remuneration and preservation are excluded

Financial return objectives

Capital preservation

Grant-making

Criterio di screening negativo “SRI”

Criterio di screening negativo “ESG”

Criterio di screening positivo, impatto positivo (es. sociale, ambientale, etc.)

The Foundation refers to 4 principles to identify a real impact investment, differentiating it from other approaches often associated with impact investing, but not "strictly impact" ("SRI" and "ESG" in primis).

Intentionality

Investments in companies and organizations whose business is specifically designed to answer a social, environmental or cultural need

Measurability

The achievement of intentional impact shall be measured, assessed and managed providing an indication for the organization's decisions

Additionality

Capitals shall be allocated preferably to reach areas and organizations that traditional investors would not normally target

Financial return

A minimum financial return or at least capital preservation are necessary to distinguish impact investments from philanthropy

Impact investing can be achieved through a variety of instruments belonging to different asset classes, which may differ in terms of risk level, expected remuneration and implications for the invested company.

FIXED INCOME SECURITIES

Debt instruments giving entitlement to receive a pre-determined flow of future payments (e.g. coupons and repayment of capital)

Examples and applications:

  • Green Bonds to fund environmental projects
  • Social Bonds
  • Bonds to subjects with a social vocation

PRIVATE EQUITY​

Investments in risk capital of private companies that require an in-depth process of data research and analysis

Examples and applications:

  • Shares of social enterprises, in the origination or traded on specific platforms
  • Shares of unlisted funds

PUBLIC EQUITY

Shares issued by (socially-driven) listed companies traded on a secondary market, with a public information

Examples and applications:

  • Stocks of estabilished companies, listed on liquid markets
  • Shares of listed funds

ASSETS

Investments in tangible goods such as real estate, renewable energy plants or even forests

Examples and applications:

  • Integrated System of Social Housing Funds in Italy
  • Solar panels, wind turbines, geothermal plants

STRUMENTI IBRIDI

Intermediate instruments between debt and equity used primarily for investment in unlisted companies or other types of organisations

Examples and applications:

  • Convertible bonds
  • Social Bonds
  • Revenue Partecipation Agreements

Scopri di più sui termini relativi a:

IMPRESE, INVESTITORI E SOGGETTI A VOCAZIONE SOCIALE

IMPACT INVESTING, FINANZA SOSTENIBILE E TERMINI FINANZIARI

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“ Impact investing represents the Research & Development area of responsible finance: it experiments with new solutions, identifies new standards and helps direct the sector towards a profound cultural evolution. It is an accelerator for the development of entrepreneurship with a social impact. ”

Marco Gerevini, Director of FSVGDA