GIIN in the news Press releases

  • Aleem Walji of the World Bank Institute's Innovation Team on the Future of International Development

    via Huffington Post Businessby Rahim Kanani

    May 05, 2011

    Summary

    In a conversation with the Huffington Post about the rise of social enterprise, Aleem Walji of the World Bank Institute's Innovation Team on the Future of International Development discusses the importance of standardized impact measurement.

    From original article:

    "The challenge has been in measuring non-financial impact. Investors may be willing to accept lower financial returns if they can measure precisely they are achieving in meeting health, education or water outcomes. The emergence of industry standards for social metrics, industry associations like GIIN (Global Impact Investing Network) are all very promising and will help unlock additional sources of capital motivated by some combination of financial and social objectives.

    "Capital is often but not always the primary constraint. The challenge is matching the right kind of capital with the needs of entrepreneurs at a particular stage of development. Cash-flow based lending and access to working capital for example, are still rare in much of Africa and South Asia and yet that's what many early stage entrepreneurs need. Rationalizing the deployment of capital — that is understanding when grants are the right instrument, when equity can play a role, and when debit is appropriate — is key to helping the sector grow. And from the perspective of the World Bank is critical in leveraging private resources to complement public capacity in meeting the needs of the poor."

    Read original article

  • Amory and Me

    via Seattle Post Intelligencerby Drummond Pike

    May 04, 2011

    Summary

    Principal at Equilibrium Capital Drummond Pike details his own evolution as a grant-maker and investor in clean energy alternatives. Now, as a principal at GIIN Investors' Council member Equilibrium Capital, Pike reflects on the decades of commitment by socially-minded investors which have led to development of the current impact investing industry.

    From original article:

    "Impact 3.0 firms like Portland-based Equilibrium Capital Group are emerging to build out this strategy: Think about the emerging 'sustainable' economy, consider who the winners and losers will be in the changing landscape, and then back the right folks pursuing the right strategies that will succeed in our resource-shy world. It just makes sense."

    Read original article

  • The Social Entrepreneurship Spectrum

    via Inc. Magazineby Issie Lapowsky

    April 30, 2011

    Summary

    In its social business issue, Inc. reports on impact investors who support mission-driven entrepreneurs with for-profit investment capital. The GIIN's

    IRIS standards

    are highlighted as a solution to the challenge of impact measurement.

    From original article:

    "Impact investors seek to quantify social return, which is far less tangible than financial return. The Global Impact Investing Network has developed a set of reporting standards known as Iris. An acronym for impact reporting and investment standards, Iris helps impact investors speak the same language so they can compare social returns from one investment to the next."

    Read original article

  • Social Investing Poised to Make an Impact

    via Financial news (Dow Jones)by James Rutter

    April 24, 2011

    Summary

    Two former investors are developing a social stock exchange in the U.K., where social and environmental businesses can list to raise capital.

    From original article:

    "Campanale was previously a fund manager at Henderson Global Investors while Jethi developed new products at the London Stock Exchange. They want to create a market for any enterprise globally whose core business addresses a social or environmental need, such as healthcare or social housing, and needs to raise risk capital...

    "...Should it launch, the Social Stock Exchange would offer a focal point - as well as a marketplace - for a diverse community of philanthropists, activists, entrepreneurs and investors that has been growing quietly for 20 years or more. Thanks to the financial crisis and its aftermath, this movement has a golden opportunity to make a lot more noise."

    Read original article

  • Building Prosperity Through Small Business Entrepreneurs

    via Huffington Postby Randall Kempner

    April 20, 2011

    Summary

    Investing in small and growing businesses with a social or environmental mission can help to stimulate developing economies while creating real benefits, says Randall Kempner, Executive Director of the Aspen Network for Development Entrepreneurs.

    From original article:

    "In developing countries, there are many other firms with good ideas that can both address a social challenge and earn profits. However, the vast majority of small business entrepreneurs lack access to resources they need to thrive."

    Read original article

  • In Developing Economies, Equity Beats Microfinance

    via Fortuneby Alan Patricof

    April 19, 2011

    Summary

    This article from Fortune details the growing investor interest in small and growing businesses in emerging markets, including the new Global Entrepreneurship Program from the US State Department.

    From original article:

    "While MFIs [microfinance institutions] do play an important role in development, there is an even greater need to support small and medium-sized enterprises (SMEs), which have shown to have the greatest potential for job growth in most places around the world. These businesses can act as the catalysts for sustainable economic development, employment, and the production of affordable goods and services in both developed and developing countries.

    "SMEs provide over 30% of total employment and generate 16% of GDP in low-income countries. In middle-income countries, SMEs capture an even larger share at 57% and 39%, respectively. But they are often considered too risky for commercial investment and need much more investment capital than can be provided by microfinance."

    Read original article

  • New Energy Crisis; New Investment Choices

    via Reutersby Nick Olivari

    April 12, 2011

    Summary

    According to this Reuter's artcile, the sustainable energy investment sector is moving from a niche market to the investing mainstream. As evidence, reporter Nick Olivari includes the perspectives of green fund managers who are aiming for market-beating returns.

    From original article:

    "The rise in the sector may be more sustainable and less energy-dependent, say the fund managers, who say that do-gooders often make good money by paying attention to environmental impacts.

    "'We are not a non-profit,' says Jack Robinson, 68, portfolio manager for the Boston-based Winslow Green Growth Fund. 'Our clients and shareholders want to make money but prefer to make their money consistent with their values.'"

    Read original article

  • Jane Wales Of Global Philanthropy Forum On The State Of Philanthropy Today

    via Huffington Postby Rahim Kanani

    April 10, 2011

    Summary

    In this interview with the Huffington Post, Global Philanthropy Forum founder Jane Wales discusses the current landscape in philanthropy, including movement towards more rigorous impact measurement and the growing interest in impact investing.

    From original article:

    "I think we need to be intentional about creating an environment from which an impact economy can emerge... [a] requirement would be a set of clear standards so that you know success when you see it. These are the kinds of tools that enable impact investing and initiatives. The Global Impact Investing Network, or GIIN, is moving the field towards this important goal through its Impact Reporting and Investment Standards, known as IRIS."

    Read original article

  • Company Aims to Offer 'Green' Dividend to Investors

    via Vancouver Sunby Peter Hadekel

    April 06, 2011

    Summary

    New funds are launching to meet the market demands of the newly emerging impact investing asset class. This article in the Vancouver Sun profiles one new fund.

    From original article:

    "The idea, says Moore, is to pursue a 'double bottom line' - making money while improving the environment or providing some other positive impact to society.

    "Impact investment is gaining visibility as an asset class. A recent report by J.P. Morgan and the Rockefeller Foundation says there are at least 1,000 such opportunities worldwide with an expected investment value of between $183 billion and $667 billion over the next decade."

    Read original article

  • The Gates Foundation Reveals How It Makes Program-Related Investments

    via The Chronicle of Philanthropyby Nicole Wallace

    April 04, 2011

    Summary

    The Chronicle of Philanthropy highlights the program-related investment strategy of GIIN Investors' Council member the Bill & Melinda Gates Foundation, which was described in detail by Senior Program Investments Officer Andrew Farnum at the Skoll World Forum.

    From original article:

    "All of the investments focus on the foundation's areas of interest - education in the United States, international development, global health - and are the result of close collaboration between program and investment officers. Since the program was announced in late 2009, the Seattle foundation has made investments totaling $150-million.

    "When a program officer suggests a potential investment, the investment team analyzes the deal to estimate what the financial return is likely to be and compares that to the 5 percent annual return that the foundation expects from its traditional investment portfolio."

    Read original article

  • The Phone Booth

    via Forbesby Alvaro Rodriguez Arregui

    March 31, 2011

    Summary

    Alvaro Rodriguez Arregui, co-founder of Latin America-focused impact investing fund IGNIA, shares his motivations for investing in businesses providing critical goods and services to people living at the base of the socioeconomic pyramid.

    From original article:

    "The question always at the top of our mind is how to help deliver the rest of the world to the base of the socioeconomic pyramid, and the base of the socioeconomic pyramid to the rest of the world. Despite their proximity to urban areas, slums are often anything but with respect to access to goods and services."

    Read original article

  • RFPs For Good

    via Financial Advisor Greenby Thomas Kostigen

    March 24, 2011

    Summary

    Author of Financial Advisor Green's impact investing blog, Thomas Kostigan, describes the open comment period underway by GIIN Investors' Council member the Overseas Private Investment Corporation (OPIC) to garner feedback on their upcoming call for impact investing proposals.

    From original article:

    "The call, to be issued by OPIC this month, will be open to equity, debt and hybrid strategies in any sector that relates to social and environmental impact investing in developing countries.

    "This is a big step in generating interest and investment activity among mainstream investment advisors for impact investing."

    Read original article