GIIN in the news Press releases

  • The Big Idea

    via Harvard Business Reviewby Michael E. Porter, Mark R. Kramer

    January 14, 2011

    Summary

    In an issue of the Harvard Business Review that explores the failings of capitalism, Michael Porter and Mark Kramer discuss in detail the value of positive social and environmental impact beyond simple profit.

    From original article:

    "The recognition is there among sophisticated business and thought leaders, and promising elements of a new model are emerging. Yet we still lack an overall framework for guiding these efforts, and most companies remain stuck in a "social responsibility" mind-set in which societal issues are at the periphery, not the core.

    "The solution lies in the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges."

    Link to Acumen blog post about this article

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  • ShoreBank International Unit Wins Independence with New Investment

    via Crain's Chicago Business Newsby Steve Daniels

    January 13, 2011

    Summary

    Two GIIN Investors' Council members partner to revive ShoreBank International, the global arm of ShoreBank Corp.

    From original article:

    "ShoreBank International said Friday it's won financing from the venture-capital arm of the Triodos Group, a Dutch bank holding company that focuses on socially conscious lending and financing.

    "Triodos Ventures B.V. is now the 'anchor shareholder' of ShoreBank International, which works with lenders and others internationally to make small loans to entrepreneurs in Third World countries. ShoreBank International said it expects other 'like-minded' investors to follow suit."

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  • Make an Impact with Your Investments

    via Market Watchby Thomas Kostigen

    January 13, 2011

    Summary

    Thomas Kostigen explores the opportunities in impact investing in his opinion column Ethics Monitor from Market Watch.

    From original article:

    "Loosely defined, impact investing aims to solve social or environmental challenges while generating financial profit. It differs from the more traditional form of investing in the space - socially responsible investing, or SRI - by actively seeking to place capital in businesses and funds that produce returns and effect social change. SRI vehicles typically rely on screens to filter out "sin" stocks among public companies. In short, SRI uses a "negative" approach to invest in good causes while impact investing uses a more positive approach.

    "To be sure, there is crossover. Also, many of the big players that have embraced impact investing are the same players in the SRI sector. One executive from the Calvert Group, a well-known SRI fund group, is said to have left to launch a series of offerings for impact investors. A look at the Global Impact Investor Network shows many familiar SRI investment companies."

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  • Gana, Invierte en Responsabilidad Social

    via CNNExpansionby Diana Fernandez

    January 11, 2011

    Summary

    This Spanish language article, written from CNN's Mexico City bureau, outlines the impact investing industry and highlights activity in Mexico.

    From original article

    (translation via google translate):

    "The business initiatives to support various foundations and environmental campaigns ceased to be a philanthropic activity to become an investment opportunity in search of a return.

    "This trend called 'Investment Impact' has potential for growth of about 500.000 million dollars for 2014, equivalent to 1% of total private investment, according to figures from the NGO United States, The Global Impact Investing Network (GIIN)."

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  • Report Describes Impact Investing as an Alternative Asset Class

    via Social Fundsby Robert Kropp

    January 10, 2011

  • Impact Investing in the Poor, the Next Big Thing

    via The East Africanby Cosma S. Butunyi

    January 09, 2011

  • Investors Wake Up to Africa

    via Mail & Guardianby Lynley Donnelly

    January 06, 2011

    Summary

    This article from South African newspaper Mail & Guardian explores impact investing in the context of all foreign investment into African business ventures.

    From original article:

    "Traditional investors are interested in the primary resources that Africa offers, but less traditional investors are also showing increasing interest.

    "There is a growing movement of investment to do more than merely earn profit, which benefits developing countries, including many in Africa. The new focus includes 'impact investments.'

    "According to Margot Brandenburg, an associate director at the Rockefeller Foundation, this implied investing with the purpose of generating social or environmental good in addition to profit."

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  • Philanthropy's 10 Favorite Buzzwords of the Decade Show How Nonprofits Are Changing

    via The Chronicle of Philanthropyby Lucy Bernholz

    January 02, 2011

    Summary

    Looking back at the first decade of this millennium, Lucy Bernholtz identifies the concepts and buzzwords that have staying power. Among these ideas are microfinance, impact investing, and social entrepreneurs.

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  • Financial Engineers Find Ways to Bridge the Funding Gap

    via Financial Newsby Matthew Craig

    January 02, 2011

    Summary

    This article explores the interest among private investors to finance social and environmental businesses in times of government cutbacks, citing a report from J.P. Morgan and The Rockefeller Foundation.

    From original article:

    "Impact investing is related to social finance and JP Morgan's head of global research Nick O'Donohoe recently put out a report which called it an emerging asset class.

    "Like social finance, impact investing aims to have a social or environmental impact, but is normally directed at the developing world and those on incomes of less than $3,000 a year.

    "So far, this form of investing has been dominated by charities and philanthropists, but there is evidence it can produce good returns."

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  • Private Equity Discovers Bottom of the Pyramid

    via The Financial Expressby Sarika Malhotra

    December 04, 2010

    Summary

    This article explores the convergence of social impact investment capital and mainstream venture capital financing the same companies whose customers are the Indian poor.

    From original article:

    "With a staggering increase in capital invested across social ventures-$404.58 million in 2010 as compared to $150.36 million in 2009-private equity/venture capital players are finding a fortune beyond the tip of the pyramid. And, in a turn of focus, interstitially more and more mainstream PE/VC funds are also venturing in this hitherto reserved space of social venture capital funds, making the investment play in the segment dynamic like never before.

    "Fathom this: If social VC funds such as Acumen Fund, Gray Matters Capital and Omidyar Network, in tune with their goals, are investing in a lighting and power company D.light Design, which delivers affordable and quality solutions to serve families living without adequate electricity, it's being matched up by investments made by mainstream players such as Draper Fisher Jurvetson India (DFJ), who are driven solely by commercial gains."

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  • Have Your Cake and Eat it Too?

    via The Citizen at Harvard Kennedy Schoolby Atisha Kumar, Katharine Wolf

    December 01, 2010

    Summary

    The student newspaper of Harvard's Kennedy School of Government details growing interest in impact investing among students and graduates.

    From original article:

    "For a lot of Harvard students, balancing their goals of doing good and doing well poses a professional dilemma. Many graduates wrestle with the choice of working in the public or private sector. How can they conceivably do both? Impact investing might just be the way.

    "Broadly speaking, impact investing involves using traditional, profit-oriented investment that seeks to achieve a social and/or environmental impact. Examples include investments in microfinance, clean technology and global health. Caroline Hoffman, MBA '12, worked at IGNIA capital this past summer and described impact investing as an opportunity to bridge the gap between social goals and financial returns.

    "A fast-growing industry, impact investment is attracting diverse talent and capital. From the financial world, players such as venture capitalists, bankers and investors view this as an economic opportunity with attractive returns. Traditional non-profits are considering new revenue models and legal structures in order to attract capital and become more sustainable."

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  • Investors Try New Tactic with African Agriculture

    via Reutersby Carey Gillam

    November 30, 2010

    Summary

    Investors and philanthropists are merging interests in the African agriculture sector, reports Reuters.

    From original article:

    "Africa as has long been a target for wealthy philanthropists who donate money in a fight against the continent's poverty, disease epidemics and food shortages.

    "Now, taking a cue from the nonprofit world, profit-hungry investors are eyeing Africa in a new way, putting a charitable spin on their pursuit of double-digit returns."

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