How can Hong Kong investors invest positively?
In this conversation moderated by Maud Savary-Mornet, Senior Advisor for the South East Asia branch of Global Impact Investing Network (GIIN)at the South China Morning Post’s Redefining Hong Kong event on “How can Hong Kong investors invest positively?”, panelists discussed impact investing and the metrics by which impact and financial gains are systematically measured.
Impact Investing Explained
Maude began by defining impact investing as “investing with an intention … to deliver a positive outcome.” This might include positive environmental, social, or workforce-related outcomes. Impact investing is also about measuring impact and informing investment decisions based on this measurement.
Chibo Tang, Managing Partner of Gobi Partners, stated that “ESG has become one of the key pillars of how we invest and the way we think about investment going forward,” which will affect the way Gobi Partners sources and manages investments in the long-term. This aligns with Maude’s assertion that “we cannot have a sustainable world without changing the way the world invests.”
On the same subject, Managing Partner of Sustainable Finance Initiative, Katy Yung, noted that “[investors with private capital] are not just looking for investment returns, they are looking for legacy … [and] harmony in society and in their families … they want to make a difference.”
Getting Returns While Making an Impact
Many people think there are worse returns associated with impact investing, but this is not the case. Impact investing is much like “normal” investing in which returns and financial gains are prioritized and measured, but it has the extra benefit of creating a positive impact in the ESG-related landscape.
Chibo commented that “the thesis that impact investment will translate into lower returns is completely outdated,” and this misconception should be dispelled once and for all. To do this, “everyone [must] understands the benefit of impact investment,” said panelist Ben Wong, Head of Open Innovation at Eureka Nova, a New World Group Member.
This can be done through further education and awareness-raising of the public and the transformation of companies from the inside out to further incorporate ESG and utilize reporting/measurement metrics.
The investment industry is “getting very serious around impact,” Katy noted, and “impact is going to be the next ESG.” In other words, impact investing is becoming increasingly mainstream due to its potential to provide returns while benefiting the world.
