Wellington’s impact investing team invests globally across three broad impact categories — Life essentials, Human empowerment, and Environment — which we then divide into 11 impact themes. Impact opportunities can represent innovative solutions across sectors, asset classes, and market capitalizations. All impact investments must meet our thresholds for materiality, additionality, and measurability. That is, companies must generate most of their revenue from products and services related to at least one of our impact themes; the impact they generate must have a low prospect of being achieved by other means; and we must be able to track and measure the impact. Once we determine whether a company meets our impact criteria, we add it to our opportunity set. In parallel, our fundamental analysis seeks to identify those investments with the most attractive long-term return potential.

Our Impact Measurement and Management (IMM) Practice works toward measuring impact as thoroughly as financial outcomes through in-depth research. This involves rigorous analysis of an investee’s contribution (both positive and negative) to social and environmental challenges before it is included in our investable universe and gathering and monitoring impact-related key performance indicators (KPIs) after an investment is made.

While we developed our impact themes independently of the SDGs, we believe there is significant overlap. For example, our Alternative energy theme aligns well with SDG Goal 7, "Affordable and Clean Energy.” Wellington’s impact investing team supports the 17 SDGs and believes the financial services industry has an integral role to play in bridging the funding gap to achieve them.