Impact Investing is Much More Than ESG Metrics
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Impact Investing is Much More Than ESG Metrics
By Ken Reed
ESG (Environmental, Social, Governance) has become a big part of the lexicon in the world of investing.
In fact, assets under the category ESG are poised to reach $41 trillion by the end of this year, according to Bloomberg Intelligence estimates. (https://bloom.bg/3ODgGtL)
However, there is some confusion when it comes to ESG. ESG is the term given to a variety of baseline metrics that attempt to measure the environmental, social and governance activities of companies.
Where the confusion comes in is that ESG is often used interchangeably with the term impact investing.
ESG and impact investing are certainly related but there is a different level of commitment and activity between a company who simply uses ESG as a measurement tool and a company that is actively doing socio-cultural and/or environmental impact work.
Impact investing is actually the evolution of ESG.
Impact investors want to know what a company’s total impact on society is. True impact companies add value to society in multiple ways, and work for the benefit of all stakeholders – customers, employees, shareholders and communities.
Impact investors are interested in a given company’s true cost of doing business, which considers the societal and environmental impact of a company’s operations. It includes negative impacts such as air and water pollution, excessive carbon dioxide output, unfair or illegal labor practices, safety issues, etc.
That said, it’s also important to stress that along with positive social/environmental impact, impact investing requires a strong financial return for investors. By definition, impact investing is an investing approach that intentionally seeks to produce both positive social and environmental impact and a competitive financial return. It’s a level beyond the use of basic ESG metrics.
Warren Buffett once said, “Good profits simply are not inconsistent with good behavior.”
He was right. It turns out doing good is also good business.
And that’s what impact investing is all about.
Ken Reed is a Senior Communications Advisor at CoPeace. As a forward-thinking holding company, CoPeace is building a portfolio of carefully selected for-profit companies with measurable social and environmental impact. To learn more about impact investing, check out CoPeace’s Intro to Impact Investing.
CoPeace Launches New Capital Campaign on SVX US Innovative Impact Investing Platform
CoPeace Launches New Capital Campaign on SVX US Innovative Impact Investing Platform
MAY 9, 2022
DENVER (MAY 09, 2022) – CoPeace, PBC, a diversified impact holding company, and SVX US, a nonprofit, diversified impact financial services firm announced today that the SVX impact investing platform will host CoPeace’s new $3 million capital campaign, a Rule 506(c) Preferred Series A offer for accredited investors.
CoPeace is building a portfolio of carefully selected for-profit companies with measurable social and environmental impact. This is the company’s first capital campaign targeting accredited investors, following a series of equity crowdfunding campaigns designed to democratize the investing process.
“We are excited about launching our new capital campaign on the SVX platform, for multiple reasons, but foremost are the shared mission alignment and the ease of use for investors to participate,” said Craig Jonas, CoPeace founder and CEO. “I have personally invested through the SVX platform which gives me great confidence that this will be an excellent fit for CoPeace as we keep the fundraising momentum going following our successful crowdfunding campaign, and over $3.5 million raised to date.”
SVX is a nonprofit organization registered with securities regulators as an Exempt Market Dealer (EMD). SVX has partners and operations across Canada, as well as in the US and Mexico and provides a suite of services enabling impact across a variety of sectors for investors, organizations, funds, and enterprises. The SVX US platform is a partnership of Cutting Edge Capital and SVX Canada.
“SVX is thrilled to bring the CoPeace offering onto the SVX US platform,” said Kevin Taylor, Associate Director, SVX Canada. “CoPeace’s mission to democratize investing while positively impacting society and the environment aligns perfectly with our vision at SVX. SVX US makes it easier than ever to invest in private market offerings that deliver meaningful change alongside the potential for financial returns. We’re excited to make impact investing accessible to all investors who are increasingly interested in aligning their investments with their values.”
SVX US is user-friendly, featuring detailed issuer profiles, a transaction engine, and capacity to make debt and equity investments across a range of impact areas including climate, food, health, equity, housing, and community real estate.
“CoPeace has been a longtime client and partner with Cutting Edge, which is exactly why we’re pleased to continue our relationship by launching their offering on the SVX US platform,” said John Katovich, Co-Founder, SVX US and Principal at Cutting Edge Capital. “Impact-focused investors have already shown their willingness to invest on SVX US and have expressed a strong interest in returning to find more like-minded issuers such as CoPeace. Cutting Edge has long been entrenched in the impact and alternative investments space, and we are committed to supporting a thriving impact investor community. We look forward to supporting CoPeace’s capital raise on the SVX US platform.”
CoPeace and SVX share a common vision: a world where all investments have a positive impact. Both companies are working to help organizations and investors match money with meaning.
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About CoPeace
CoPeace is a forward-thinking holding company, building a portfolio of carefully selected for-profit companies with measurable social and environmental impact. CoPeace is democratizing the investment world by allowing everyone, not just wealthy investors, to invest in private impact companies via its holding company structure. In addition, CoPeace provides a variety of consulting services to organizations demonstrating positive social or environmental impact.
As a designated Certified B Corp and a public-benefit corporation (PBC), CoPeace is committed to acting morally, ethically and responsibly in regard to society, the environment, the natural world and the world at large
To learn more about CoPeace and how you can grow your money for good, visit http://copeace.com.
About SVX US
SVX US makes it easy for enterprises, including private issuers, CDFIs, nonprofit organizations, and funds, to connect with impact investors in a simple and automated way. The organization operates an online impact investment platform with campaign preparation support, detailed profiles, automated transaction and subscription document processing, and capacity to deploy investments across security, investor, and offering types, from DPOs to Reg D to nonprofit and co-op offerings. SVX US also offers a range of referral partner support, including legal, marketing, and capital advisory services. SVX US is a partnership of Cutting Edge Capital and SVX Canada.
For more information on SVX US, please visit https://svx.us.com/.