ESG fixed income investing is not enough - impact investing is far more compelling. The distinction between impact and ESG fixed income investing is important to understand fully. While ESG investing is the inclusion of environmental, social and governance considerations alongside traditional financial analysis, there is no guarantee that ESG funds have a positive environmental or social impact. Impact fixed income, on the other hand, requires investing in bonds that have a measurable, positive environmental and/or social outcome without compromising financial returns. Crucially, impact investing includes measurement and reporting that ensures investors fully understand not only the financial return from the projects invested in, but also their environmental and social metrics to which ensures an accurate representation of the overall fixed income portfolio’s impact. Unlike ESG investing, impact investing accelerates the allocation of capital to solve the world’s climate and social challenges, and tangibly quantifies the benefits provided from a single investor’s portfolio. - Stephen Fitzgerald, Affirmative Investment Management. Earn 0.50 CE/CPD hrs on Portfolio Construction Forum