11 October 2018

  • Impact & Sustainability
  • External Relations
  • Investor Relations
  • Executive Management

Finance in Motion article in Frankfurter Allgemeine Zeitung discusses the future of green investments

Managing Director Elvira Lefting argues the value of carefully selected impact investments for achieving positive environmental impact, as compared to the more generic “green” products.

One of Germany’s leading national newspapers, the Frankfurter Allgemeine Zeitung, recently featured an article in its Sunday edition on impact investing penned by Finance in Motion Managing Director Elvira Lefting.

In the article, Elvira argues the value of carefully selected impact investments for achieving positive environmental impact, as compared to the more generic “green” products.

According to the article, almost anyone who wants to invest money these days can find a green product – from eco-friendly savings products to sustainable investment funds. Most green investments follow an ESG (environment, social and governance) approach which, for example, means excluding sectors such as coal, nuclear energy, or genetic engineering from the portfolio. The “green” effect of such investments is often limited, given that the investor cannot directly influence positive environmental and social outcomes. Investments in concrete, tailor-made green projects, however, tend to achieve greater impact.

Given that environmental challenges are global in nature, Finance in Motion focuses primarily on emerging markets where environmental awareness and laws are still evolving. We pay close attention to the smaller initiatives that have a truly sustainable impact and bundle such investments in innovative impact investment funds.

Be it investing in sustainable forestry in Latin America or Sub-Saharan Africa through a specialized fund, or supporting the modernization of energy systems and resource management in Southeast Europe, the Eastern Neighborhood Region and the MENA region, or promoting sustainable agricultural production in Latin America – we ensure that the funds we advise not only generate returns while helping the environment, they also have a systemic impact.

To ensure that these green impact investments are scaled up, more investors need to be won. To achieve this, Finance in Motion has pioneered blended finance funds with different risk classes, whereby public donors provide a risk buffer, making the investment more attractive for private investors. We are confident that more and more investors striving for a balance between risk, returns and positive impact, will move over to the rich green side.

The full article can be found here (in German only).