Impact Investing: Leading the Way

In the wake of the Global Financial Crisis and in light of a growing chasm between those with capital and those without, Larry Fink’s recent letter: “A Sense of Purpose” reflects on the need for companies, both private and public, to move toward growth that provides positive social outcomes. This consideration has arisen from his observation that “low rates, low wage growth and inadequate retirement systems” are problems facing many people today. Additionally growing trends in technological advances and the displacement of people from traditional jobs are all part of a picture of future instability.

Fink’s observation of these global trends has prompted him to pen a letter to CEO’s reorientating the pursuit of quarterly results or shareholder profits toward also providing positive Environmental, Social and Governance practices (ESG). That is to move toward a vision where private firms step into the space once traditionally held by governments in meeting the social and environmental needs of people and the community.

By having private firms attempting to meet the needs of the future, it is hoped that long term sustainable growth can simultaneously have a positive impact on the world. Blackrock group under Fink’s leadership promises to provide an example by doubling their Investment Stewardship Group led by Michelle Edkins, the group’s global head.

Within this space, Christian Super has proudly looked to pioneer investments that achieve honest returns while creating a positive impact in the world. These investments of ours are called Impact Investments. As a result of Impact Investing Christian Super has been able to help facilitate the tertiary education of 252 low income students, restore 130 Australian foster children to their homes, provide 46 additional hospital beds in India, contribute 2.4 million megawatts of clean energy from renewable sources and over 2 million microfinancing loans and over 7 million micro insurance policies in the developing world. In addition Christian Super has been instrumental in the creation of ‘Brightlight’ a partner organisation specialising in impact investment portfolios.

Our biblical stewardship team ensures that we as an organisation steward our funds in a way that acknowledges God’s provision to us and honours and glorifies him in our use of these provisions. It is a great privilege for Christian Super to create positive returns for our members whilst investing in a way that aligns with our member’s values and personal beliefs.

Impact Investing has been a successful and powerful tool in achieving long term sustainable impacts around the world whilst creating positive financial returns for our members. To date Christian Super has invested over a 100 million dollars in Australia and around the world, making positive lasting change around the world.

– Opinion piece by staff member Nikhil