Norselab Impact Day 2024: Impact investing is still a teenager, but maturing fast.
This year’s Norselab Impact Day, co-hosted by Norselab, Investinor, and Capricorn Investment Group, and part of the Oslo Innovation Week program, provided a refreshing outlook on the evolving landscape of impact investing.
This year’s Norselab Impact Day gathered around one hundred investors, founders, and industry bodies around the central theme “Pioneering Meaningful Investing”. The event focuses on forward-thinking discussions on what can be achieved through impact investing and showcases the tangible results that impactful companies can create. The field of impact investing is growing and maturing and continues to play a key role in addressing global challenges.
Profitability and impact; twice the spice
One of the key takeaways from the day was that impact investing can be profitable and a force for positive change. Panelists including Nina Kraus from leading global private markets investment firm Hamilton Lane, explained that the firm’s research shows investors may see positive financial returns from sustainable investing that are better or on par with mainstream investing. She highlighted that, while most investors are motivated by returns, many now “want more”; investors often also want their investments to meet non-financial goals for the future on top of the profits they generate. While the industry continues to push for more data to prove consistent performance over time, the panelists provided multiple examples of how meaningful impact is compatible with market-rate returns.
Metrics matter, but the truth matters more
Discussions also touched on the necessity to aggregate impact performance, and the challenges this brings. Standardized metrics, such as the ubiquitous GHG emissions reductions, often fail to capture the most relevant impacts of investments. One of the panels, gathering WWF, Investinor, Norselab, and the Norwegian School of Economics, highlighted the need to preserve a holistic approach when identifying impact opportunities and measuring progress, while catering to the aggregation needs of institutional investors. The panel agreed that “while metrics indicate something, they do not tell the truth”, and urged to pay greater attention to hard-to-quantify outcomes in for example biodiversity, pollution, and social issues.
Which role for public market strategies?
One of the much-awaited panels of the day asked the question: Can impact investing make a difference in public markets? While impact investing is often associated with private markets, several speakers underscored that we cannot ignore public markets if we want to mobilize more capital for change. Although impact takes on a different shape compared to private markets, panelists from KLP, Osmosis Investment Management, and others shared various examples of how public markets offer impact opportunities - ranging from solution strategies to resource efficiency strategies. Brynjar Bustnes, an ex-NBIM portfolio manager, pointed out that engagement is one way to ensure investor contribution through public market impact strategies. Ole Einar Stokstad, Senior Portfolio Manager of Norselab’s credit funds, shared that “our returns have been stellar, actually, we have more than 30% in less than two years, that’s almost 50% better than average.”
Many attendees found the company presentations to be a highlight of the day, as Beefutures, Alotta, Heimdall Power, and K2A all presented the challenges that led to their solutions and the concrete changes they create in the world.
A call to action
Christian Rosenholm from The Global Impact Investing Network offered the room a standout moment as he stepped onto the stage for the fireside chat. During his vibrant talk, he exposed the success story of impact investing, which has attracted more than a trillion US dollars in assets in only 17 years. He described impact investing as “a teenager,” testing and trying to find its way but growing up and maturing very fast. Although we need to channel significantly more capital to impact investing, Christian emphasized that we don’t need all investments to be for impact; even a small percentage of global assets under management is sufficient to cover the financing needs for climate, nature, and social equality. The talk ended with a powerful call to action for the people in the room to not let time run out, but to act while there is still time:
"If we don’t act now, future generations will question us: «What did you do? You had the science, the technology, and the resources, yet you chose to do nothing.» It’s time for action; we don’t have time to wait for perfection."
Wrapping up with celebrations
The event ended on a high note with a vegetarian BBQ and live music from Rick Grove, offering participants the chance to connect, reflect, and celebrate the day.
The entire Norselab team wishes to thank co-hosts, panelists, and everyone in attendance for making Norselab Impact Day 2024 a success. We look forward to continuing this important journey for change together and hope to see you again next year.
