November 7, 2019

By Lynda Kiernan

WA Super has partnered with Impact Investment Group (IIG) to launch the WA Impact Fund, a geographically-focused impact fund dedicated to investment opportunities that will generate revenue while also creating positive social or environmental impacts in the state.

“The locally focused impact investment fund is one of the first of its kind and we are honored to be pioneering this form of investing,”  said Fabian Ross, CEO of the $3.8 billion superfund.

WA Super has gone on to announce a capital commitment of $20 million to the WA Impact Fund, which under its mandate will target opportunities in sustainable agriculture, community solar projects, social impact bonds, and in local enterprises that will provide commercial returns along with “measurable, intentional environmental and/or social benefits”.

Impact and sustainable investing is seeing greater standing in the investment world. Assets tied into sustainable and impact investment strategies totaled $23 trillion in 2016 – a 25 percent increase over such assets in 2014, according to The Global Sustainable Investment Alliance. By 2017, socially responsible investments accounted for 26 percent of all professionally managed investments worldwide.

The impact investment market offers not only an overarching benefit to society and the environment, but the potential for healthy returns as well, The Global Impact Investor Network (GIIN) concluded that between 2016 and 2018, impact AUM saw a 400 percent increase, climbing from US$120 billion to US$500 billion over the two-year period.

However, there is a gap in impact investment in Oceania, according to the 2018 Annual Impact Investor Survey released by GIIN, which shows that the region has the second lowest asset allocation by geography – only surpassing the MENA region. This gives WA Super and IIG an advantage as being only the second superannuation fund to provide a dedicated impact investment mandate in Australia. 

“The locally focused impact investment fund is one of the first of its kind and we are honored to be pioneering this form of investing,” said Ross. “We want to make a difference for all the right reasons, and to help address some of WA’s social and environmental issues whilst continuing to have positive investment returns for our members.”

“We are truly deeply excited to be bringing this impact investment fund to Western Australia, and that WA Super is providing its tens of thousands of members access,” said Daniel Madhavan, CEO, WA Super.

“When people realize that their superannuation can grow while also helping protect the environment and build an inclusive, vibrant community, they love it because it just makes sense.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.