{"id":45991,"date":"2024-04-05T09:23:33","date_gmt":"2024-04-05T08:23:33","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=45991"},"modified":"2024-04-05T09:23:33","modified_gmt":"2024-04-05T08:23:33","slug":"the-positive-power-of-sovereign-wealth-funds-for-esg-investment","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/the-positive-power-of-sovereign-wealth-funds-for-esg-investment\/45991\/","title":{"rendered":"The positive power of sovereign wealth funds for ESG investment"},"content":{"rendered":"
Investing in people might seem to go against pure profit maximisation and business savvy, but it is not just a morally rewarded practice; it is also, in the modern world, a smart financial strategy.<\/p>\n
In my work at the Oxford Centre for Mutual & Co-owned Business at Kellogg College, University of Oxford, I look at how investment strategies by influential sovereign wealth funds (SWFs) can produce significant human, social, and environmental benefits.<\/p>\n
A sovereign wealth fund is an investment pool of foreign currency reserves a government owns.<\/p>\n
According to The Sovereign Wealth Fund Institute, a global organisation designed to study sovereign wealth funds and other forms of funds, the amount of money held by the largest sovereign wealth funds has more than doubled since September 2007<\/a>, from $3.265tr to $9.1tr in 2021.<\/p>\n With such huge capital reserves, SWFs’ financial potential is huge in scale and scope.<\/p>\n So, sovereign wealth funds, with their long-term investment horizons and huge capital reserves, are well-positioned to influence the global investment landscape toward ESG priorities. Their focus on intergenerational wealth makes them a perfect fit for social enterprise investment’s steady, generational rewards.<\/p>\n As socially conscious investing becomes more mainstream and is shown to provide a positive return on investment, investment firms will increasingly explore the possibilities of ESG investment (and, across the board, are). This provides a unique opportunity to combine financial return with planet-bettering social impact.<\/p>\nThe financial potential of sovereign wealth funds for sustainable investment<\/h3>\n