Robeco’s approach to impact investing in public markets

Impact investing, which aims to benefit the environment or society while also earning a financial return, has always been tricky to define for investors. Proving that a positive impact has actually been achieved has often been difficult, along with the debate over whether public markets are an appropriate investment channel.

But this should not stop investors from trying to make a difference by utilizing equity and bond markets to direct capital towards impactful companies. In addition, shareholder engagement can be used as a means to have a more direct influence on companies’ sustainability practices.

In this white paper, we outline Robeco’s approach to impact investing; how we distinguish between impact-aligned and impact-generating investing; how the Robeco SDG Framework provides the backbone for identifying suitable companies; and how we apply engagement to generate a positive real-world impact.