About Impact Investing
What is Impact Investing?
Impact investments are those made with the intention to generate a positive and measurable impact from a social and/or environmental point of view, in addition to a financial return.
The growing interest in Impact Investing provides capital to address the most critical challenges in areas such as sustainability, renewable energy, conservation, education and healthcare.
Why Impact Investing?
Traditionally it has been considered that social and environmental issues should be tackled by philanthropic or public funds, and that financial investments should seek exclusively an economic return.
However, financial investors increasingly choose to allocate their funds to projects that, besides obtaining an attractive financial return, achieve social or environmental goals.
What are the key elements of Impact Investing?
For an investment to be considered as Impact Investing, it must meet the following criteria:
The investor’s intention to generate a positive social or environmental impact must be a key element of the investment selection process.
Expected financial return
Investments are expected to achieve a positive financial return.
The impact must be quantifiable, and measurement and reporting mechanisms should be established.
Impact investing at Argo
Given our investment focus, our investments generate a positive environmental impact.
In addition, and as a result of the emissions reductions, there is also a positive impact on health.
Our investees also generate a significant impact in creating job opportunities in emerging industries and in the reindustrialization of regions affected by the energy transition.
The environmental impact of our investments does not make us give up the financial profitability.
Thus, our expected returns are in line with those obtained by traditional private equity fund managers.
The expected profitability of our investments is backed by our investment focus in a growing area.
Measuring the impact of a portfolio of companies in heterogeneous industries poses a certain degree of complexity.
For this reason, we have selected the CO2 emissions reduction as the only parameter to measure impact in our portfolio.
To measure, track and report the impact of our investees we use generally accepted metrics and procedures.
Investing in the future of our planet
What we invest in today will determine the world we live in tomorrow.
We invest in ambitious companies committed to shaping a world in which the economy moves towards a more environmentally-friendly energy use, in order to avoid the catastrophic effects of climate change.
In ARGO we visualize an energy world with a more efficient consumption, with an energy based on renewable sources, with a growing electrification of consumption, in which the circular economy plays a key role and where the digital transformation will act as a facilitator in the implementation of these changes.
Fernando El Santo, 3 – 4º
28010 Madrid (Spain)
(+34 ) 911 924 863