Impax Asset Management Group Plc
IMPAX ASSET MANAGEMENT
30 Panton Street,
- 2020 Sustainable Development
- 2014 Sustainable Development
Impax was established in 1998 entirely for the purpose of capturing business opportunities arising from sustainable development. The company employs around 170 staff across five offices in the UK, US and Hong Kong, making it one of the investment management sector’s largest investment teams dedicated to sustainable development.
The company’s first client, the World Bank, hired Impax to advise and subsequently run one of the world’s first solar energy investment funds. Emboldened by its early success, the Impax management team has built a global franchise that helps asset owners benefit from opportunities to realise strong investment returns from companies whose products and services are driving the transition towards a sustainable economy. The company’s work also enables Impax to demonstrate material, positive environmental impact from its investments, and to contribute significantly to advancing the policies necessary to underpin that transition.
Demonstrating that investing in sustainable development can be highly profitable Impax was one of the first investment managers to identify the compelling opportunities arising from the transition to a more sustainable economy.
Back in the late 1990s, environmental markets were relatively small and Impax’s investments were typically risky. Two decades later, the firm’s portfolios of companies – providing cleaner, more efficient products and services across the energy, water, waste, food and agriculture sectors – have delivered strong, long-term, risk-adjusted returns.
Defining sustainable development goals in terms of investment opportunities to persuade large asset owners to commit capital To help asset owners, Impax has pioneered methods to quantify the environmental impact of portfolio companies. Developed in 2015 and updated annually, the company’s environmental impact measurement and reporting methodology produces net carbon emissions, renewable energy generation, water savings and materials recovery and recycling data for all of the companies it invests in. It has also developed a mapping methodology to explain how its strategies align with sustainable development goals (SDGs) and provide detailed evidence on how the companies within its investment portfolios are having a positive impact on the environment – the primary focus of Impax’s investment strategies. The mapping is intended to identify the SDGs that are relevant and implementable by the private sector.
Helping companies that are leading sustainable development to improve Impax engages with investee companies in order to help them strengthen their business plans, risk management and disclosure related to sustainability, including governance. In 2018, the business undertook 115 proactive ESG engagement initiatives, a move which resulted in many companies improving their performance, for example contributing to industry-wide reporting protocols such as the Carbon Disclosure Project.
Generating and contributing to academic and cross sector research to resolve challenging issues related to sustainable development Impax is committed to producing research that addresses complex issues relating to sustainable development. For instance, it partnered with the Grantham Institute and Imperial College Business School to develop a ‘Smart Carbon’ methodology, essentially a quantitative tool to measure and manage climate change investment risk. In addition, Impax was among the first investors globally to develop the Impax Global Women’s Leadership Index, which comprises the highest rated companies in the world in advancing women that meet key ESG standards (according to Impax Gender Analytics).
The firm has achieved global recognition for its investment in companies led by women, advancing pay equality and promoting greater gender diversity on corporate boards. Impax has an active gender engagement and voting approach in place.