The ambition of the EQ Positive Impact strategy has always been to demonstrate that investors can make a positive impact through their investments while at the same time generating attractive financial returns.

EQ’s 2021 impact report outlines the environmental and social benefits linked to its clients’ investments in the EQ Positive Impact portfolios

Additionally, the report details the progress of EQ against its engagement impact agenda over the last year as well as providing more detail on its approach to sustainability and future goals.

Notable developments outlined in the report, include:

Impact highlights

Key impact highlights saw an increase in the impact associated per £1m invested, including:

• 75 tonnes of waste recycled: equivalent to 76 households’ annual waste.
• 266MWH of renewable energy generated: equivalent to 81 homes’ usage.
• 52m litres of wastewater cleaned: equivalent to 402 households’ wastewater.
• 623 hours of school, further and adult education delivered.
• 157 patients treated.

Aligning with the UN Sustainable Development Goals

For the first time, this year’s report explains the ‘theory of change’ framework that EQ uses to build its impact metrics and assess the impact of each investment. This links a company’s activities and its outputs to a set of outcomes and progress towards the UN Sustainable Development Goals.

Investing for a low carbon world

Limiting the worst effects of climate change requires the rapid decarbonisation of our economies. EQ has measured carbon emissions across the entire value chain of its equity investments. The companies in the EQ Positive Impact portfolios show a significantly smaller climate change contribution and are more carbon efficient. EQ also uses a “stress-test” to show how the positive impact investment approach is likely to investment value from a climate policy crackdown.

Engaging for change

EQ continues to engage with fund managers, policy makers and underlying companies as it continually looks for opportunities to improve the net-positive impacts associated with its investments.

The report documents how EQ drives change through engagement with three case studies covering: the setting of climate change targets; human rights in supply changes; and tackling obesity through nutrition.

Bridging the gender investment gap

According to HMRC figures, 43% of stocks and shares ISAs are held by women, but the reverse is true for those investing in the EQ Positive Impact portfolios. A higher proportion of women – 54% choose to invest in a sustainable way.

Louisiana Salge, Senior Sustainability Specialist at EQ commented:

There can be no denying the impact of the pandemic on all our lives over the past eighteen months. Amongst the many changes seen as a result of the emergence of Covid-19 is a sharpened appetite for sustainability. At the same time, it reinforced the value of our efforts to prioritise impact factors in our investment approach.

“It’s clear that more of us want to act and do something about today’s issues – whether it’s social and economic inequalities or climate change, and investing is a powerful way to make a difference.

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