This thesis discusses the potential for private investment to fund ambitious renewable energy research and development to help mitigate climate change. I begin by discussing the threat of global warming and a brief history of renewable energy development in the United States. Next, I discuss existing avenues for private investment in renewable energy, potential methods of increasing corporate participation, and the belief that businesses must maximize only financial profits. Then I perform an in-depth case study of pension funds that have incorporated a social or environmental mission, existing environmentally focused mutual funds, and liquidated clean energy mutual funds. Finally, I compare the historical performance of the existing mutual funds to the liquidated to determine a profit threshold below which clean energy focused funds fail and discuss optimal investment strategies to foster bold renewable energy investment.

Submitted by Luana Rodrigues (luana.rodrigues@fgv.br) on 2014-06-03T20:04:04Z No. of bitstreams: 1 140412_FOppenheimer_FGV (2).pdf: 1514431 bytes, checksum: 9e46a23ba86b2d8ad56245733fe723ae (MD5) / Approved for entry into archive by Luana Rodrigues (luana.rodrigues@fgv.br) on 2014-06-03T20:04:18Z (GMT) No. of bitstreams: 1 140412_FOppenheimer_FGV (2).pdf: 1514431 bytes, checksum: 9e46a23ba86b2d8ad56245733fe723ae (MD5) / Made available in DSpace on 2014-06-04T11:19:27Z (GMT). No. of bitstreams: 1 140412_FOppenheimer_FGV (2).pdf: 1514431 bytes, checksum: 9e46a23ba86b2d8ad56245733fe723ae (MD5) Previous issue date: 2014-03-13 / The paper analyses how Impact Investors select their portfolio companies in Latin America and what criteria are assessed in the process. Since virtually no research on this has been conducted to date, and since the selection process model applied in Venture Capital is not dissimilar, that approach has been adopted. The findings reveal that Impact Investors originate and assess deals in a similar way to Venture Capitalists, but that some criteria are adjusted and others added in order to reflect the dual objective of Impact Investing. Impact Investors can originate deals passively, but they prefer searching for social ventures proactively: personal contacts, access to networks and industry events are crucial in this context. Impact Investors considering an investment in Latin America search for integer, honest and reliable social entrepreneurs committed to social impact; eligible social ventures must be profitable with potential for further scalability; the product must have a social impact, i.e. create value for the individual consumer and for the wider community; market size and market growth are crucial external factors; and the deal features depend on the investor’s risk attitude and the prospects of a successful exit in both financial and social terms. Impact Investors are also willing to provide non-financial support prior to an investment, if a social venture shows high potential for achieving their dual objective. / O documento analisa como investidores de impacto selecionar suas companhias de portfólio na América Latina e que critérios são avaliados no processo. Uma vez que praticamente ne-nhuma pesquisa sobre isso foi con conduzidos até à data, e desde que o modelo de processo de seleção aplicados em capital de risco não é dissemelhantes, foi adotado essa abordagem. Os resultados revelam que os investidores de impacto originar e avaliar negócios de uma for-ma semelhante a capitalistas de risco , mas que alguns critérios são ajustados e outros adicio-nados a fim de refletir o duplo objectivo de investimento de impacto. Os investidores de im-pacto podem originar ofertas passivamente, mas eles preferem procurar empreendimentos sociais de forma proativa: contatos pessoais, o acesso a redes e eventos do setor são cruciais neste contexto. Impacto Investidores considerando um investimento em pesquisa para a Amé-rica Latina inteira, empreendedores sociais honestos e confiáveis comprometidos com impacto social; empreendimentos sociais elegíveis devem ser rentáveis com potencial de escalabilidade; o produto deve ter um impacto social, ou seja, criar valor para o consumidor individual e para a comunidade em geral; tamanho do mercado e crescimento do mercado são fatores externos cruciais; e as características de negócio dependem de atitude de risco do investidor e as perspectivas de uma saída bem sucedida, tanto em termos financeiros e sociais. Os investi-dores de impacto também estão dispostos a dar apoio não financeiro antes de um investimen-to, se um empreendimento social, mostra alto potencial para atingir o seu objectivo dual.

O investimento de impacto é um conceito intermediário entre investimento tradicional e filantropia, e ainda representa uma fração pequena dos valores movimentados nas outras duas áreas. No entanto, é uma área que vem crescendo muito rapidamente e ganhando adeptos não só entre as organizações sociais, mas também nos mercados privado e governamental, e estima-se que essa modalidade de investimento possa movimentar cerca de um trilhão de dólares em 2020. Se o grande diferencial entre o investimento de impacto e o tradicional é justamente o impacto positivo gerado, para que o desenvolvimento do campo seja efetivo, urge um melhor entendimento do que é este impacto e como avaliá-lo. Assim, com a visão de contribuir com a discussão acerca da avaliação do impacto social na seara dos investimentos de impacto, o presente trabalho buscou responder à questão de pesquisa \"Como realizar a avaliação prévia (due diligence) do impacto social de um novo projeto?\". Para tanto, foi proposto um modelo de análise do impacto baseado na experiência do Acumen Fund, que foi aplicado no projeto de tecnologia assistiva mDREET, desenvolvido pelo negócio social Solar Ear. O foco do trabalho foi a fase inicial da avaliação dos investimentos, a due diligence, e o resultado obtido foi a demonstração, na prática, de um modelo simples de avaliação, que se mostrou válido para disseminar a compreensão do processo que leva ao impacto social esperado. Por demandar poucos recursos financeiros e de tempo, uma vez entendido, este modelo pode ser adaptado e replicado em diferentes contextos. / Impact investing is a recent concept, intermediary between traditional investment and philanthropy, and, in terms of assets under management, represents a small fraction from both other areas. Nevertheless, it has been growing at a high pace, and not only amongst the third sector. The private and public sector have been making some moves towards this direction and the estimated potential of this market is around one trillion dollars by 2020. If the big difference between impact investing and traditional investing is the intentional social and environmental positive impact, to enable a consistent growth, there is an urgent need to better define what this impact means and how to measure it. In order to contribute to this discussion, the current work aims to answer the research question \"How to make the due diligence of a new project\'s social impact?\". To accomplish this goal, the author proposes an impact evaluation model based on Acumen Fund practices. This framework was applied in mDREET, an assistive technology project developed by a social business named Solar Ear. The focus has been placed on the tools used in the due diligence phase and as a result, it is presented a simple and low cost process for social impact due diligence, which can be further refined as the company progress in the investment analysis pipeline. Once this process is understood, it can be adapted and used in different occasion/context.

Impact investors, seeking financial returns from investments that actively create social or environmental value, use a process known as due diligence to vet incoming investment opportunities. Some industry-wide tools have come to aid investors in this task. Existing metrics are not sufficient to assess the environmental performance of investee companies, the result of which is an allocation of increasing investment dollars into ventures and industries that are not operating within the limits of the socio-ecological systems upon which society depends. This paper proposes the creation of an investor toolkit that would allow users to effectively integrate the principles of strategic sustainable development (SSD) into the due diligence process. Such a toolkit would explain how current due diligence support tools could be used to construct comprehensive sustainability analyses of potential investments. The proposed toolkit was conceived after interviews with impact investors, social entrepreneurs, and industry experts. The research findings confirm a need for investors to use a strategic understanding of sustainability during the due diligence process, in order to increase portfolio value over time.

This bachelor thesis evaluates how high-engagement investors contribute to the development and growth of for-profit social enterprises by providing both funding and non-financial advisory services focused on organisational capacity-building. Case studies on three social enterprises describe the structure of funding deals, what considerations affected these due to the high social character of the ventures, and inquire into the relationship between social enterprise and their investors to evaluate how the investors provide value for their investees beyond capital. The investor types involved include commercial venture capital funds, angel investors, accelerator programs and venture philanthropy funds; a sort of social impact investment fund which combines the high- engagement mentoring of venture capital funds with lower expectations on financial returns in exchange for higher demands on social impact. The findings indicate that high-engagement investors in general provide a wide range of services to the social enterprises studied, where strategic advisory services and networks introductions are identified as key enablers for development. Aligning philosophies on the combination of business and social impact is also identified as critical for a constructive relationship between investor and investee. The perceived value of venture philanthropy funding diverges between the cases; while filling an empty space in the social enterprise capital market, some findings question their capabilities and investment model. Apart from the initial research questions on how high-engagement investors add value to social enterprises, the study raises further questions on social enterprise funding in general and the issues that obstructs these organisations from introducing innovation and growth to underdeveloped markets.

Submitted by Julien Midoux (julien.midoux@sciencespo.fr) on 2017-12-22T07:51:46Z No. of bitstreams: 1 Julien MIDOUX_Master Thesis.pdf: 1907108 bytes, checksum: 8ea9374a4ae0967cec2ae29f516b08e8 (MD5) / Approved for entry into archive by Josineide da Silva Santos Locatelli (josineide.locatelli@fgv.br) on 2017-12-22T10:07:12Z (GMT) No. of bitstreams: 1 Julien MIDOUX_Master Thesis.pdf: 1907108 bytes, checksum: 8ea9374a4ae0967cec2ae29f516b08e8 (MD5) / Made available in DSpace on 2017-12-22T12:10:46Z (GMT). No. of bitstreams: 1 Julien MIDOUX_Master Thesis.pdf: 1907108 bytes, checksum: 8ea9374a4ae0967cec2ae29f516b08e8 (MD5) Previous issue date: 2017-11-21 / This research aims to study private equity impact investments based on a comparative analysis of different private equity funds practices. In particular, it examines how the requirements of impact investing are encompassed in private equity investment processes. First, a literature review was conducted to better define impact investing and assess the complementarity of private equity with impact investing. Secondly, a qualitative study was pursued based on a panel of interviews. Interviewees are investment professionals working for private equity firms with interests in impact investing. The analysis of the interviews indicates a certain commonality of the investment methods between the funds paneled whether they are pure player private equity impact investors or traditional private equity firms investing for impact. Beyond the proximity between investment strategies, the research also shows a strong focus on in-house impact targeting and measurement, with little resort to external tools. Such flexibility negatively affects the readability of impact performance from a market perspective. The research concludes impact investing still has to go through a standardization process to gain global recognition as a private equity segment. / Esta pesquisa tem como objetivo de estudar os investimentos de impacto de private equity com a base de uma análise comparativa de diferentes práticas de fundos de private equity. Em particular, examina como os requisitos de investimento de impacto estão abrangidos nos processos de investimento em private equity. Em primeiro lugar, uma revisão da literatura foi feita para melhor definir o investimento de impacto e avaliar a complementaridade do private equity com os investimentos de impacto. Em segundo lugar, um estudo qualitativo foi realizado com base de um painel de entrevistas. Os entrevistados são profissionais de investimento que trabalham para empresas de private equity com interesses em investimentos de impacto. A análise das entrevistas indica uma certa semelhança dos métodos de investimento entre os fundos estudados que eles sejam unicamente investidos em impacto o que sejam fundos de private equity que fazem investimentos de impacto além de investimentos tradicionais. Além da proximidade entre as estratégias de investimento, a pesquisa também mostra um forte foco em processos de segmentação e de medida do impacto internos, com pouco recurso para ferramentas externas. Essa flexibilidade afeta negativamente a legibilidade da realização do impacto por parte do mercado. A pesquisa conclui que os investimentos em impacto ainda precisam passar por um processo de padronização para obter reconhecimento global como um segmento de private equity.

The purpose of this thesis is to gain a deeper understanding of the term impact investing and examine how Nordic impact investors manage risk, return, and social and/or environmental in emerging markets. Relevant aspects to impact investing have been identified to enable this thesis to be conducted. The thesis derives from a qualitative research method, this to gain a deeper understanding of the term and how Nordic impact investors conduct their business in emerging markets. The thesis is based on a deductive research approach due to that the term impact investing has a limited amount of previous research.   The literature review highlights relevant theories related to the research questions. The concepts presented are impact investing, emerging markets, dual interest, and risk management. These theories have later been put into a conceptual framework to showcase the interconnections. From the conceptual framework, three main concepts (impact investing, dual interest, and risk management in emerging markets) have been established and then later analysed based on the empirical data gathered from a multi-case study.   The analysis chapter includes a comparison and discussion between the empirical findings and the literature review in order to answer the thesis research questions. Furthermore, the analysis follows the same concepts presented in the operationalization. The final chapter reveals the conclusions drawn based on the analysis conducted. The final chapter further highlight implications both theoretical and practical, followed by suggestions for future research. The theoretical implications of the thesis pinpoint that impact investing require conceptual clarity to raise more awareness and gain recognition. Furthermore, risk management is an essential part of conducting investments in emerging markets. The practical implications showcase that impact investing can be conducted in several different ways and that there are no distinct patterns on how to manage impact investments best. Furthermore, the thesis stresses the importance of impact investing in emerging markets.

With a growing risk of food insecurity in the face of extreme population growth, the world is in need of hands-on solutions that could combine a significant increase in food production while decreasing the effects of agriculture on the environment. Such a solution could be provided through cultivating staple crops in Indoor Vertical Farming facilities, however, due to its high expenses, these developments have stagnated, lacking financial support. As this financial support could be provided by Impact Investors, this thesis explores the relevance of non-financial factors and how they relate to the financial returns as well as how much it influences an Impact Investors decision to invest. The primary data was collected through a quantitative survey, including a fictional scenario based upon the cultivation of wheat in an Indoor Vertical Farming. The results were analyzed and interpreted through the lens of the Willingness to Pay concept and the Rational Choice Theory.The results showed that in the case of this study, the respondents were most willing to pay for the factors water, yield, and emissions. However, regardless of the positive impact of these factors, they lacked the influence to get them to commit to the presented scenario as they still prioritized financial returns as the base of decision. Lastly, another prominent driver behind the investors likelihood to invest was found to be age, where younger investors were much more likely to invest than the older respondents. / Med en ökande risk för livsmedelsosäkerhet parallellt med extrem befolkningstillväxt behöver världen praktiska lösningar som kan kombinera en betydande ökning av livsmedelsproduktionen utan ökad belastning på miljön från intensifierat jordbruk. En sådan lösning kan tillhandahållas genom odling av stapelgrödor i vertikala jordbruksanläggningar inomhus, men på grund av dess höga kostnader blir denna utveckling stagnerad på grund av saknat ekonomiskt stöd. I och med att en möjlig väg att säkra ekonomiska stöd kan tillhandahållas av Impact Investors undersöker denna avhandling relevansen av icke-finansiella faktorer och hur de relaterar till den finansiella avkastningen samt hur mycket det påverkar ett Impact Investors beslut att investera. De primära uppgifterna samlades in genom en kvantitativ enkätundersökning, baserat på ett fiktivt scenario om odling av vete i ett vertikalt jordbruk inomhus. Resultaten analyserades och tolkades genom perspektiven 'Willingness to Pay' och 'Rational Choice Theory'. Resultaten visade att respondenterna i den här studien var mest villiga att betala för faktorerna vatten, avkastning och utsläpp. Oavsett de positiva effekterna av dessa faktorer saknade de dock tillräckligt inflytande för att få investerarna att helt engagera sig i det presenterade scenariot eftersom de fortfarande prioriterade ekonomisk avkastning som främsta beslutsunderlag. Slutligen visade sig att en annan framstående drivkraft bakom investerarnas sannolikhet att investera var ålder, där yngre investerare var mycket mer benägna att investera än de äldre respondenterna.

Micro-property developers are social entrepreneurs operating in townships and offer high quality rental units that upholds the dignity of community members. Although they are making a valuable contribution they are also faced with many challenges and the biggest being access to funds. This study looks at how impact investing, an emerging funding model can be used to address this challenge. Impact investing can be described as a cross-sectional initiative that involves the professional participation of various stakeholders; to drive social entrepreneurship to a level which can drive the socio-economic impact within communities, to create a social good that optimises financial, social and environmental returns ( Annual Impact Investor Survey, 2019). This research study seeks to explore and understand collaboration strategies that can be employed by micro-property developers in the context of South African townships. This study investigates how micro-property developers, through institutional systems and a multi-stakeholder approach can collaborate with impact investors by applying the concept of collective impact effort in township areas. Further on, this study highlights the importance of impact investing and unpacks the successes and challenges in township areas by illuminating how risk-taking, organisational values and funding contribute to corporate considerations in generating measurable, social and environment impact combined with financial return. Through relevant literature consulted and the use of in-depth interviews this study adopted a qualitative research methodology. Research participants included micro-property developers, impact investors and intermediaries. The research findings indicate that in the corporate ambit of social entrepreneurship and impact investing; variables such as income, risks, impact measurement, the situated area of human settlement and investor readiness are key considerations in the successful acquisition of funding opportunities. In addition, although impact investment in township areas is still an untapped market in South Africa, community leadership and partners should equally advocate the need of inclusion and innovation to steer sustainable impact investment opportunities in such communities. This study suggests that impact investors and funders should work toward cross-sectional initiatives that are scalable and inclusive, and that can create a positive impact in township communities. This study also recommends that a level of deeper knowledge is required through informed research, to understand the value and the impact of impact investments in township areas. This way, scientific data can override all stereotypical notions linked to township investments, as stigmas of crime and risks still hinder investment opportunities in townships compared to their urban counterparts.

The Cost of Feeling Good attempts to quantify the optimum portfolio returns of Socially Responsible Investment Funds and Dual-Purpose Portfolios. In order to meet the demands of investors who want to create a social impact and generate financial returns, investors can choose two methods. For the purpose of this study, the social returns were quantified and the financial returns were quantified using net present value. In every scenario, the socially responsible investment decision generated higher financial returns. Because of the immediate loss to an investor after choosing the DPP strategy, financially, the SRI fund appears to be the better approach for a financially driver investor. In terms of social returns, the DPP has a more clear impact on society. Measured as the charitable contribution given on an $1,000 investment, the socially responsible fund contributes far less to society on a per investor basis. Therefore, if an investor is interested in generating higher social returns and wants to be selective in terms of their charitable donation, they should choose the DPP model. In terms of tax brackets, investors in higher tax brackets have to generate higher financial returns on socially responsible investments in order to match the returns of a DPP. This is also true with investors who invest less in charity. Therefore, the investors that are in the highest tax bracket and contribute little to charity will need to generate far higher SRI returns according to the constructed theory. This finding is important to the growing millennial trend in sustainable investing.