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Why investors need to seek out fresh ESG data — and embrace impact

As the global economy bends increasingly bearish, now is as good a time as any to take stock of legacy strategies and look for new ways to diversify

Data is a key tool to ensure the success of impact investing
Data is a key tool to ensure the success of impact investing Photo: Laurence Dutton/Getty Images

Roy Swan is director of Mission Investments at the Ford Foundation

In recent decades, the misconception that environmental, social, and governance factors and impact investing require concessionary returns has translated to short-term investment strategies that overlook positive social impact in the name of more guaranteed — albeit very finite — financial gain. Many investment fund managers have mistakenly associated these investment strategies with underperformance or, worse, a breach of fiduciary duty.

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