CHAPTER 10

Thematic and Impact Investing

Investing in solutions and measurable outcomes

Opening question

“Can my investment build solar farms, clean water and affordable housing?”

In this chapter

From avoiding harm to financing solutions: where thematic and impact investing fit
Sustainability themes such as clean energy, water, health and inclusion, and how a theme becomes a portfolio
Revenue alignment and the purity of a thematic fund, with a worked example
The risks of thematic investing: concentration, crowded trades and high valuations
Impact investing: intentionality, additionality and measurement
The 17 Sustainable Development Goals as a common language
Outputs, outcomes and impact, and how to attribute impact to an investor, with a worked example
Private markets, microfinance and impact in Vietnam

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This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 10 — with its tables, figures, worked examples and practice lab — is available in the complete edition of ESG and Sustainable Investing: From Theory to Practice — Vietnam Readiness (Volume 4, NXW Investment Library).

Read Chapter 1 free Get the full book — [email protected]

Sections of this chapter

10.1 From avoiding harm to financing solutions

10.2 Sustainability themes

10.3 From a theme to a portfolio: revenue alignment

10.4 The risks of thematic investing

10.5 Impact investing: intention, additionality and measurement

10.6 The Sustainable Development Goals as a map

10.7 Measuring impact: outputs, outcomes and impact

10.8 Private markets, microfinance and blended finance

10.9 Impact in Vietnam

10.10 Thematic, impact and the rest of the portfolio

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