• Facebook
  • Twitter
  • Youtube
  • LinkedIn
  • Christchurch Ph +64 3 348 8480
  • Hokitika Ph +64 3 755 8673
  • Rolleston Ph +64 3 348 8480
Parry Field Lawyers
  • Home
  • Our People
  • Services
    • Property
      • Residential
      • Construction
      • Subdivisions
      • Commercial
      • Leasing
    • Advisory
      • Sale & Purchases
      • Financing
      • Governance
      • Technology/IT
      • Capital Raising
      • Employment
    • Disputes
      • Court, Tribunals and Arbitrations
      • Estates & Wills
      • Divorce & Separation
      • Insurance
      • Employment
      • Family
      • Company & Shareholding
      • Debt Collection
      • Construction
    • Trusts & Asset Planning
      • Wills & Enduring Powers of Attorney
      • Estates
      • Succession Planning
    • Charities/Social Enterprises
      • Not for Profits
      • Churches
      • Sports Groups
      • Social Enterprises
      • Impact Investing
      • Community Groups
    • Immigration
      • Work Visas
      • Family Visas
      • Skilled Migrants
      • Business and Investment Visas
      • Potentially Prejudicial Information
      • Employer Assistance
      • Overseas Investment
  • Resources
    • Guides
      • COVID-19 Legal Handbook
      • Buying & Selling Property
      • Death & Estates
      • Family Trusts
      • Churches Handbook
      • Start Ups Legal Toolkit
      • Social Enterprises in New Zealand Handbook
    • Articles
      • Tomorrow’s Board Diversity: The Role of Creatives
      • Charting the Future: A framework for thinking about change
      • Resources for COVID-19 Related Issues
      • The new Finance Guarantee Scheme: Could it help your business during Covid-19?
      • COVID-19: Paying your employees
      • COVID-19: Key Legal Issues for Charities
      • Making Employees Redundant – The Importance of the “Why”
    • Videos
      • Force Majeure” clauses in Contracts and COVID-19
      • Buying your first home: Key issues (a practical guide from a first home buyer)
      • Property sale and purchases and COVID-19
      • COVID-19 and Commercial Leases
      • Seeds Podcast
    • Templates
      • Terms and Conditions
      • Terms and Conditions Including Software
      • Non-Disclosure Agreement – Two Way
      • Independent Contractors Agreement
      • Shareholders’ Resolutions – Written resolution
      • Share Transfer
      • Incorporation – First Shareholder Resolutions
      • Incorporation – First Directors’ Resolutions
      • Non-Disclosure Agreement – One Way
  • Careers
  • About
  • Contact
  • Search
  • Menu Menu

Impact Investing: The Future?

Charities/NFP, Not for Profits, Social Enterprise

We live in a time when paradigms are colliding. Old conceptions from an extractive economy which have been accepted for decades are being challenged by new ideas that are planted in the soil of a regenerative economy. One outworking of this is the growth of “Impact Investing”.

Traditionally, the primary driver when looking at an investment has been monetary returns for the investor. “You can pay a 9% return on investment? Well, that is not as high as the 11% I have on offer here – so you know where I am going.” However, such an outlook is limited and narrow because it is only focussed on financial returns.

Impact investing offers a different approach. The Global Impact Investing Network provides the following definition: “Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.”

So the alternative presented by impact investing is that there are other considerations that need to be thought about, such as:

  • What does the business actually do – is it an extractive business which is contributing to degradation of the planet? Coal fired power station, anyone? Sugary drinks? Tobacco?
  • Who does the business employ – is the business model built on the premise that there is exploitation in how cheaply it can produce whatever it makes, either onshore or offshore?
  • What other outcomes are there – perhaps social, cultural, environmental or other factors will be impacted by the business.

The key is that there will be some positive impact through the investment, while still generating return for the investor. It’s about thinking a bit longer before you decide what to invest in.

All this is increasingly relevant and growing – the Global Impact Investing Network did a survey and reported US $114 billion invested by the 208 respondents (large funds) in impact investments. They state regarding this that, “impact investing challenges the long-held views that social and environmental issues should be addressed only by philanthropic donations, and that market investments should focus exclusively on achieving financial returns.”

Locally, in New Zealand an Impact Investing Network was set up last year and they provide resources and information. More than $8 million was raised by one paradigm-shifting New Zealand fund (the Impact Enterprise Fund) which is investing into social enterprises and others pushing boundaries with their companies. Another (Purpose Capital) raised $20 million recently. Impact investing is here to stay and we are confident it will grow as more people step back and think through how they are investing their funds.  What might this mean for you?

 

Please note that this is not a substitute for legal advice and you should contact your lawyer about your specific situation. Please feel free to contact us on 03 348 8480 or by email to Steven Moe – stevenmoe@parryfield.com or Kris Morrison – krismorrison@parryfield.com

Share this entry
  • Share on WhatsApp
https://www.parryfield.com/wp-content/uploads/2019/11/Impact-investing.jpg 3024 4032 Cora Granger https://www.parryfield.com/wp-content/uploads/2019/07/Parry-Field-Lawyers-Logo.png Cora Granger2020-05-27 21:13:042020-05-27 21:15:41Impact Investing: The Future?

Related Lawyers

Steven Moe
Email Steven
+6433488480
View Profile
Aislinn Molloy
Email Aislinn
+6433488480
View Profile

Christchurch

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
1 Rimu Street, Riccarton,
Christchurch 8041

POSTAL ADDRESS:
PO Box 8020, Riccarton,
Christchurch, 8440

Hokitika

PHONE: +64 3 755 8673
FAX: +64 3 755 8073

PHYSICAL ADDRESS:
26 Weld Street,
Hokitika 7810

POSTAL ADDRESS:
PO Box 44,
Hokitika 7842

Rolleston

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
68 Rolleston Drive,
Rolleston, 7614

POSTAL ADDRESS:
PO Box 8020, Riccarton,
Christchurch, 8440

Make an enquiry

Parry Field Charitable Foundation

Parry Field charitable members of NZ LAw, Global Cross Legal and SCLA

Newsletter signup

70 Years of Excellence logo

© Copyright Parry Field Lawyers. All rights reserved. Privacy Policy. Terms of Engagement Brought to life by Happy Monday Ltd
Open For Business – We Are Now Registered As A Service Provider Under... Charting the Future: A framework for thinking about change
Scroll to top