🌱 Impact & ESG Investing via Unlisted Shares
Summary: Beyond returns, many investors seek social and environmental impact. Explore how to vet unlisted companies on ESG metrics and tap impact-focused private deals.
1. Defining ESG Criteria
- E: Carbon footprint, waste management
- S: Labor practices, community engagement
- G: Board diversity, governance standards
2. Sourcing Impact Deals
Networks like Toniic and AIC offer impact-only syndicates; InvestoEdge filters private deals by ESG score.
3. Due Diligence for Impact
Review third-party ESG audits, sustainability reports, and UN SDG alignment to validate claims.
4. Measuring Outcomes
Set KPIs (e.g., tons COâ‚‚ reduced, # beneficiaries served) and require periodic reporting in shareholder pacts.
5. Exit via Impact Funds
Emerging secondary funds buy ESG-compliant unlisted shares, offering tailored exit routes for impact investors.