Impact Investing: Dispelling the Myths

Discussion of the increasingly important topic of impact investing remains beset by a number of myths and misconceptions. In this paper we attempt to dispel some of these myths, and describe what impact investing means to Lombard Odier and how we integrate it into our practice.

At a glance :
Discussion of the increasingly important topic of impact investing remains beset by a number of myths and misconceptions. In this paper we attempt to dispel some of these myths, and describe what impact investing means to Lombard Odier and how we integrate it into our practice.

Myth 1: Impact investing involves giving up returns or taking on more risk in exchange for doing good in the world.

Myth 2: Impact investing is all about excluding “sin stocks,” rather than pursuing investment opportunities and positive real-world impact.

Myth 3: Impact investing can only ever be a worthy niche.

Myth 4: ESG analysis is fine for making sure all the right boxes are ticked, but it ignores the real-world impact of those measures.

Myth 5: There is not enough reliable data available to be effective as an impact investor, and the industry is not interested in creating it.

Myth 6: Asset managers like to “talk the talk” on impact investing, but none of them really “walk the walk.”

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Bertrand Gacon
Head of Impact Office

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Robert de Guigné
Head of ESG Solutions