Impact Investing: Killing Two Birds with One Stone?

Past, present, and future of sustainable finance: insights from big data analytics through machine learning of scholarly research

“…The later decade (2006–2015) sees the introduction and boom of new research such as carbon finance (Aglietta et al, 2015 ; Bredin et al, 2014 ; Purdon, 2015 ; Yenneti & Gamaralalage, 2012 ; Yeoh, 2008 ), climate finance (Brunner & Enting, 2014 ; Hogarth, 2012 ; Jakob et al, 2015 ; Vanderheiden, 2015 ), conscious capitalism (Sisodia, 2009 , 2013 ; Wang, 2013a , 2013b ), ESG-CSR and firm performance integration (Dorfleitner et al, 2015 ; Eccles & Viviers, 2011 ; Friede et al, 2015 ; Halbritter & Dorfleitner, 2015 ; Himick, 2011 ; Nielsen & Noergaard, 2011 ), and ethical investing (Bauer et al, 2007 ; Belghitar et al, 2014 ; Chow et al, 2014 ; Pender & Brocchetto, 2011 ; Richardson, 2009 ; Säve-Söderbergh, 2010 ; von Wallis & Klein, 2015 ; Watson, 2011 ). The most recent half decade (2015–2020) is characterized by research responding to the Paris agreement and the launch of the SDGs in 2015, with exponential growth in publications focusing on impact investing (Agrawal & Hockerts, 2019 , 2021 ; Caseau & Grolleau, 2020 ; Lieberman, 2020 ; Robb & Sattell, 2016 ; Viviani & Maurel, 2019 ) innovative financial instruments such as social impact bonds (Carè et al, 2020 ; Giacomantonio, 2017 ; Rizzello & Kabli, 2020 ; Torre, et al, 2019 ), and ESG investing and firm performance (Alessandrini & Jondeau, 2020 ; Chen & Mussalli, 2020 ; Giese et al, 2019 ; Landi & Sciarelli, 2019 ; Schramade, 2016 ). The summary of the brief evolution of sustainable finance research is presented in Fig.…”

Private Capital to Improve Nature-Based Solutions for Coastal Protection: Time for a Boost

“…Specific targets-an intrinsic part of a PES mechanism-could include general improvements to coral health and/or restoration aimed at increasing cover of structural builders (Figure 1). Impact investments are made in order to generate positive and measurable environmental, social and financial impacts [83]. This is a relatively new type of endeavor where investors are willing to accept lower financial expectations in exchange for having greater environmental or social impact.…”

Environmental, Social, and Governance Issues and the Financial Analysts Journal

“…In "Impact Investing: Killing Two Birds with One Stone?," Caseau and Grolleau (2020) brought up a challenge regarding individuals' perceptions about impact investing-that some investors have biases preventing them from believing that impact investing can achieve both financial returns and social returns.…”

“…Using insights from the psychology literature, Caseau and Grolleau (2020) provided suggestions as to how an adviser might counter these mechanisms, such as, depending on the investor, prioritizing one of the goals over the other, reducing the perceptions regarding conflicts between the goals, helping the investor perceive progress toward one goal, and distinguishing information appeals from emotional appeals. They also provided strategies to debias individuals or nudge them away from biases, such as reminding investors that they may have subconscious biases, enhancing information presentation, and framing.…”