The Initiative for Responsible Investment (IRI) at the Hauser Center for Nonprofit Organizations promotes the development of the theory and practice of responsible investment through research, dialogue, and action. The IRI works across asset classes to build communities of practice around innovative responsible investment strategies and catalyze new opportunities and concepts in responsible investment.
This week, Rockefeller Brothers Fund announced that it would be divesting its $860m portfolio from fossil fuels. This was only the latest in a series of high profile announcements by major investors in anticipation of the UN Climate Summit 2014, acknowledging the role that investors can play in supporting a more sustainable future: Yale’s endowment released a letter it had sent to its asset managers, asking them to assess the impacts of their investments on climate change, and almost 350 major institutional investors signed a letter committing to financing clean energy, and asking for governments support through policies such as carbon pricing.
In all the clamor of the divestment movement, opportunities to proactively invest in support of reducing climate risk and positive environmental outcomes can get lost. Private equity and venture capital investments in alternatives and renewable energy are often discussed, but can be risky in unsupportive policy environments and challenging to find at scale. Green bonds, which have been receiving a lot of attention lately, can be easier to place in portfolios and support a wide range of projects related to the environment and climate change globally. [read more...]