When it comes to applying business methods to solving the problems of climate change, not all approaches are born equal. Terms such as ESG, sustainability and impact investment are often used interchangeably, regardless of the investment strategy. However, as definitions solidify around increasing global regulations aimed at meeting the Paris Agreement target of net zero carbon emissions by 2050, each of these approaches is emerging as very different.
ESG investing is the process of investing in assets that currently meet a company’s goals, while sustainability is the capacity to invest in processes and products that can be maintained over time—hopefully generations. Impact investing, meanwhile, is investment with a measurable social and environmental effect that also turns a profit. While these three terms may overlap, it’s impact investment’s focus on financial return that puts it bang in the centre of the Venn diagram of responsible investment.
John O’Brien, partner, energy, climate and sustainability at Deloitte Touche Tohmatsu, says that impact investing may be growing strongly, but it still suffers from inconsistent definitions. “There is an ongoing transition from this being a philanthropic pursuit to a genuine investment option with target investment returns,” he says.
This story is from the June 2023 edition of Tatler Hong Kong.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the June 2023 edition of Tatler Hong Kong.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
THE LAST WORD
Every issue, we ask our cover star a round of quickfire questions that give us a little more insight into their personalities. This month: Takashi Murakami
GOING WITH THE FLOW
How does one approach the ancient philosophy of feng shui in a modern way? Three leading Hong Kong-based designers share their thoughts on this revered art of placement and how to introduce its principles into our spaces
SCENE MAKER
Italian architect Antonio Citterio reflects on his enduring collaboration with Maxalto and how far the furniture brand has come since its early beginnings
MODERN FAMILY
Kourtney Kardashian's California sanctuary by famed designer Martyn Lawrence Bullard, is where elegance meets comfort
A TO Z COSMETIC TREATMENTS
From Botox to glass skin facials, here are the most talked-about cosmetic treatments to know
CHANGING THE GAME
Our world is ever-changing, and so is the way we experience it. Tatler explores how the travel industry is adapting to the needs and values of a new generation
ACTS OF SERVICE
Go on, then. Ask Vea and Wing's chef-owner Vicky Cheng what his love language is
THE BIRTH OF A MOVEMENT
More women are taking back their birthing experience and their power by challenging the institutionalised norms surrounding childbirth, honouring the healing process and leaning on the magic of sisterhood
THE RIGHT INGRDIENTS
Oscar nominee Tran Anh Hung, who won Best Director at Cannes last year, evolves the language of cinema to present the simple beauty of Vietnam
THIRST TRAP
Marilyn Minter takes an exclusive self-portrait for Tatler and reminds the world why raw, honest, non-conforming beauty is the most compelling kind