Welcome the new monthly North America Impact News Roundup, where Oikocredit Canada and Oikocredit US track the progress and challenges in building the impact investing industry. We are dedicated to keeping our stakeholders informed and that starts here.
Global Impact Investing Network (GIIN) and TELUS Pollinator Fund Launch Initiative
The Global Impact Investing Network (GIIN) – of which Oikocredit is proud to be a member – has launched its Corporate Impact Investing Initiative in collaboration with Telus Pollinator Fund, Paypal, and the Visa Foundation. The goal of this endeavor is to help corporations direct financial and non-financial assets towards impact investments that generate measurable, positive social and environmental results while driving forward strategic and business objectives.
"Leveraging corporate treasury for impact investing is a strategic way for corporations to align shareholder and community interests," Gabrielle Rabinovitch, Acting Chief Financial Officer at PayPal.
$33.4 Million Boost to Kenya’s Solar Market
Oikocredit, AfricaGoGreen Fund, and The Facility for Energy Inclusion (FEI) have joined together to help Solarise Africa build a $33.4 million facility which will strengthen Kenya’s solar industry and will enable them to expand throughout Africa. Solarise Africa provides reliable and affordable decentralized energy solutions for businesses in Africa.
“We are proud to welcome these three prestigious new investors – Lead arranger FEI, Oikocredit and AfricaGoGreen – to our current group of investors. Throughout 2022, we have significantly grown our footprint and portfolio, and with this new loan, we will be able to catapult our efforts to advance renewable energy adoption in Africa.”
New US Rule Allows Socially Conscious Investing by Retirement Plans
On November 22, President Biden lifted restrictions on retirement plans considering environmental, social and governance (ESG) factors when selecting investments. This step came after The Labor Department announced a final rule first proposed last year after Biden ordered government agencies to assess climate-related risk to retirement and pension investments.
“The Labor Department said the Trump-era rules, which had been criticized by business groups and the financial industry, failed to account for the positive impact that ESG considerations can have on long-term investment returns.”
Oikocredit Q3 2022 Report: Moving in the Right Direction
Four times a year, Oikocredit International publishes its quarterly financial results. The cooperative’s performance strengthened in Q3 2022. Its development financing portfolio (financial inclusion, agriculture, renewable energy) grew, net portfolio income was up, and quality improved. Oikocredit expects these trends to continue in Q4 and acknowledges the global economic uncertainties ahead.
“Rising inflation and food and energy prices are likely to make many partners cautious about new borrowings, although partners involved in coffee and cocoa production may benefit from increasing crop prices.”
Demand For Impact Investing Is Rising. Here’s Why.
A perception is growing among Gen Z, Gen X, and Millennials that there are two flavors of capitalism: extractive (a model based on the extraction of profit from humankind and nature) or sustainable. These younger generations are enthusiastic about choosing a path that is eco-friendly, inclusive, and regenerative. Through impact investing, people can align financial resources with personal interests and values.
“This type of investing is becoming more popular as people realize that profits and purpose can go hand-in-hand.” - Tatiana Mitrova, research fellow at Columbia University