Grading Asset Managers on their social impact: GAWA writes for ImpactAlpha's What's Next series
Luca Torre was invited to write for Impact Alpha's What's Next series, in an article responding to the question launched by the Global Impact Investing Network's CEO, Amit Bouri, on how to reshape finance in order to drive real social and environmental impact. The article covers the increasing risk of "impact washing", whereby traditional Asset Managers, seeking to benefit from growing consumer demand for positive social and environmental impact, try to market their products as impactful when in reality their priorities lie far from this. Several key members from the impact investing world participated in this highly interesting article, which considers issues and suggests solutions that will be fundamental in paving the way for ensuring real impact in the future.
Luca Torre, Co CEO and Co-Founder of GAWA Capital, specifically manifested the need for a methodology for distinguishing between Asset Managers, effectively grading them on their impact via Intentionality, Impact management, Theory of change, and Data evidence for the impact they claim to have. Aligning social impact objectives with funds' carried interest is also key in ensuring impact is a real focus, and not just a short-term marketing technique.
You can read more about reshaping finance to achieve real impact here.