A Capital In|Flow with Impact Perspective by Constance de Wavrin, Founder of In|Flow
We know the playbook for finance to be truly transformative in the regions of the world most adversely and disproportionately affected by climate change.
We can significantly de-risk opportunities by designing protection into structured products such that all levels of investor risk-return-impact ambition are catered for and matched to their corresponding layer of the capital stack.
Creatively mobilising public and private capital towards investible projects, assets and activities that are authentically sustainable and regenerative could result in local economies and societies emerging stronger and more prosperous from the current crisis.
When stepping in investor rooms, it becomes apparent that what stands in the way are a few stubborn myths that keep capital on the sidelines:
🌱 Myth 1: Sustainability takes away from return potential.
Reality: Well-structured sustainable and impact investments compete on a risk-adjusted return basis. Ignoring climate, social and governance risk is what erodes value over time.
🌱 Myth 2: Emerging and frontier markets are too risky for institutional capital.
Reality: Risk is often mispriced. Blended finance, guarantees and first-loss structures exist to allocate risk to those best placed to carry it, and to crowd in more conservative sources of capital at scale.
🌱 Myth 3: Impact can’t be measured, so it’s likely greenwashing.
Reality: Credible green and impact frameworks, social-lens criteria and transparent reporting let investors verify outcomes at the last mile. Rapid new software development and responsible AI are advancing the mainstreaming of best practices for transparency.
The capital and the tools exist. What’s needed now is the will to integrate best practices into investment portfolios and deploy large pools of capital with integrity.
Which myth do you hear most in investor rooms?
♻️ Connect if you too believe finance has the power to regenerate and sustain people and planet.
#ImpactInvesting #SustainableFinance #BlendedFinance #ClimateFinance #RegenerativeEconomy #EquitableTransition #AlternativeInvesting
