Transversal Skills for All Impact Investors
Then relating effectively is another crucial transversal skill in impact investing. It involves empathetic and respectful engagement with diverse stakeholders, including communities, non-profits, governments, and corporations. Building trust and nurturing relationships is essential for understanding local contexts, identifying shared goals, and co-creating sustainable solutions. By fostering inclusive decision-making processes and ensuring the voices of marginalised groups are heard, impact investors can foster equitable outcomes and avoid unintended negative consequences.
Knowledge about Sustainability Solutions
Assessing the track record of existing solutions is another crucial aspect of impact investing knowledge. In practice, this means putting in the effort to study past failures, successes, and lessons learned by others, while also understanding the characteristics and financial implications of impact enterprise models. By leveraging this knowledge, impact investors can identify promising initiatives, avoid duplication, and allocate resources to initiatives with a proven track record and potential to effectively address sustainability issues.
Functional Skills for Investment Analysts
Furthermore, finance and business analysis skills are also essential in impact investing. Investors must be confident in assessing the financial viability, risk-return profile, and long-term sustainability of potential investments. This requires the ability to conduct rigorous financial due diligence, analyse business models, and evaluate revenue generation potential.
It also entails the ability to structure impact investments, taking into account the specifics of an enterprise’s impact-business model, market conditions and the ecosystem of financing actors and instruments that can be leveraged. The capacity to tailor instruments to adequately distribute risks and returns and incentivise the pursuit of social impact is crucial in this regard.
Upskill to Grow your Additionality
Impact Investing Essentials Boot Camp
September | Brussels, Belgium