Integrating social impact into capital allocation is not new. The asset management industry is well versed at viewing investment opportunities through an environmental, social and governance (ESG) lens. Yet, across financial services, it appears that there is a lot more room for improvement.
In recent months, we surveyed financial services institutions from across the market, as part of the City of London Corporation’s Finance for Impact initiative, on their approach to scaling and measuring social factors in their activities. Nearly half (47%) of respondents said that most of their capital allocation activities were being done without social impact goals being considered.
