Promising Potential
We believe that consensus is building around the crucial role of the private sector in facilitating industrialization, growth and sustainable development. Responsible investing is fast becoming mainstream and can be implemented in an investment portfolio through enhancing the risk management process by considering environmental, social and governance factors (ESG).
Impact Investing goes further than this, by making intentional investments into companies, organizations and funds that have “the intention to generate positive, measurable social and environmental impact alongside a financial return.” (The GIIN)
Going beyond ESG
Since signing up to the United Nations Principles for Responsible Investment (UN PRI) in 2013, we have systematically incorporated Environmental, Social and Governance (ESG) issues into our decision-making processes across all asset classes. Golding fully embraces the use of ESG to support and advance responsible investing and sees the process as fundamental to adequate risk assessment. In the latest UN PRI assessment report 2021 Golding received the top rating of 5 stars in all the asset classes private equity, private credit (fixed income) and infrastructure. In the category Investment & Stewardship Policy Golding was given 4 stars. For more information on the current UN PRI Assessment-Report 2021 click here.
We have been monitoring the impact investing sector for several years and we are intending to go beyond ESG by leveraging the resources and expertise of the firm to make a contribution to addressing some of the fundamental problems of society through impact investing.
Golding Impact Investing Principles
Institutional investors must meet their extensive regulatory obligations while maintaining clearly set return targets. Golding Capital Partners focuses on impact investing strategies with market-driven risk-adjusted returns that meet institutional investors' investment objectives.
In our view, a credible impact investing strategy should follow the following four principles:
- generate market rate returns,
- address specific social or environmental needs, most
commonly identified by the UN Sustainable Development Goals (the
"Sustainable Development Goals" or "SDGs" for short),
- comprehensive and transparent reporting on impact
performance; and
- investing with the clear intention of achieving positive social and environmental outcomes.