Impact Investing in Extraordinary Times
March 20, 2020
To say we are living in extraordinary times would be an understatement. The world is facing an enormous amount of uncertainty, straining families, communities, companies, and markets.
Like all investors, we are in close touch with our portfolio partners and are monitoring this rapidly evolving situation. While we don’t know what the ultimate impact of this outbreak will be, we do know that, like in the case of natural disasters, there is an immediate need to support the most vulnerable populations, such as those who have contracted the virus or are at a high risk for doing so. This need is best met by medical professionals and government or philanthropic resources.
We believe that impact investors will also play a critical role in our eventual recovery from this pandemic – not only in strengthening communities, but in reshaping our economic system to become more resilient and prioritize social and environmental concerns. As impact investing is driven by the connection between finance, people and planet, it takes a stakeholder and solutions-driven approach to investing, focusing on ensuring long-term health and well-being.
As an impact investor, Calvert Impact Capital is a part of an industry built to address enduring problems and to move capital into the communities that need it most. Our portfolio is broad and diverse – supporting everything from affordable housing in Texas to renewable energy in Tanzania. There is no Bloomberg terminal or index for these markets, and no instantaneous, real-time data, but we still collect robust market data. Today, the organizations we invest in – 115 organizations active in all 50 states and over 100 countries – are busy reaching out to the businesses they lend to, the property managers they contract with, and others in their portfolio who directly serve communities. Many of the more obvious themes are arising - life without income for businesses and families is and will be increasingly challenging.
First-hand follow-up with portfolio partners over the coming weeks, along with broad market data, will paint a detailed picture of the most critical challenges facing communities. This information will give investors a better idea of where and how to intervene most effectively.
Being part of the solution to the global challenge before us has never been more important. We have the infrastructure to bring capital to the groups that can respond effectively; and we are committed to leveraging our intermediation capacity to the fullest extent to support both investors and communities in creating near-term and long-term solutions.
We will continue to share our insights as we connect with our partners and our peers. We look forward to working together on solutions to create a better future for us all.