Impact Investments: A Strategy for Generating Social, Environmental and Financial Returns
The Jamaica Stock Exchange in association with GraceKennedy Group Limited who sponsored the event and the distinguished Dr. Edward Jackson President of E.T. Jackson Associates and Special Advisor to the Rockefeller Foundation presented an Impact Investment working Breakfast at the Jamaica Pegasus Hotel 81 Knutsford Boulevard, Kingston 5,
According to Global Impact investments Network, Impact Investments are investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending upon the circumstances. Impact investors actively seek to place capital in businesses and funds that can harness the positive power of enterprise.
Mrs. Marlene Street Forrest, General Manager of the Jamaica Stock Exchange in welcoming the audience, stated that “the Jamaica Stock Exchange saw its role as a facilitator for the introduction of a new concept to many Jamaicans” She encouraged those in attendance ‘ to consider impact investments as another means of achieving positive social, environmental and financial returns’.
Mr. Michael Ranglin, CEO of GK Foods and Executive Director of the GraceKennedy Group told the audience GraceKennedy has been involved in impact investments and gave an example of GraceKennedy’s involvement in impact investment. According to Mr. Ranglin, “In 2011, we made another step in signalling our commitment to Jamaica’s agro-processing industry by making another significant investment. This was through our post-harvest processing plant at Hounslow in St. Elizabeth. Although we engage farmers all across the island, that plant, a $43 million investment, allowed us to invest in the farmers in and around the community of Hounslow. Seventy farmers are now contracted to us, and while they provide food for us to continue production, we are helping them to provide for their families and grow as business people. Through this collaboration we have done what impact investors strive to do – actively seek to place capital in businesses and funds that can harness the positive power of enterprise. Done right, it is a reciprocal process, and many people benefit”.
Dr. Edward Jackson then took the audience through the concept, framework and examples of impact investments and how Jamaica can benefit from this form of Investments. Most importantly how Jamaicans can start the process of having Impact Investments. He stated that Impact Investment is a US$20 Billion industry worldwide and growing and can be found on every continent in the world. He stated that Impact Investment has the following potentials:
· The ability to unlock new types of capital to address a range of social issues, and to combine capital in creative ways
· An opportunity to address the limitations of traditional investment approaches that narrowly focus on financial returns
· A desire by more wealthy investors to generate both financial and social returns
He went on to state that Impact Investors are normally, Fund Managers, Banks, Corporations, Pension Funds among others and Jamaica could see real benefit from Impact Investments in the area of Energy and Agriculture.
