Measuring Effectiveness: Roadmap to Assessing System-Level and SDG Investing

The Harvard Law School Forum on Corporate Governance and Financial Regulation 2018-04-19

Posted by Steve Lydenberg and William Burckart, The Investment Integration Project, on Thursday, April 19, 2018
Editor's Note: Steve Lydenberg is founder and CEO and William Burckart is president and COO of The Investment Integration Project (TIIP). This post is based on a TIIP report by Mr. Lydenberg and Mr. Burckart.

As responsible investment in its various forms [1] makes increasing inroads into the investment community, the question of how such investors set their goals and measure their progress toward these goals is of ever greater importance.

As to their financial goals, the answer is relatively clear: traditional investors integrating environmental, social and governance concerns into the security selection are seeking either competitive or enhanced returns, while investors with a philanthropic mission may be willing to accept concessionary returns or combine conventional investments with philanthropic activities.