Sustainable investing is not about checking boxes, says Fedgroup

Fedgroup has long been a pioneer in the realm of impact investing, particularly through Fedgroup Ventures. The specialist investment and insurance company is dedicated to changing the world for the better, rather than just reaping financial rewards. 

Two of society's biggest challenges — food and energy security — have been addressed by Fedgroup through strategic partnerships and the provision of financing for chosen projects.

“People, planet and profit are our guiding principles, but never at the expense of one another. For many of our initiatives, in fact, this approach has clearly boosted profitability,” says Warren Winchester, GM of Fedgroup Ventures.

Fedgroup's focus has moved away from typical ESG integration and towards a more comprehensive approach to impact investment. While ESG concentrates on risk mitigation, impact investing aims to provide not only financial returns, but also favourable social and environmental effects.

“By considering these elements, and with our core focus being in [food security and energy security], we can impact 16 of the 17 Sustainable Development Goals of the UN. This is not a simple tick-box exercise for us, but a strategy and a way of doing things that is ingrained into our culture.”

Impact investing in action 

Fedgroup evaluates the results of its investments in a way that goes beyond depending on published indicators. 

To evaluate the impact on the actual environment, they interact with stakeholders, employ in-house created meters and consult expert panels.

For instance, they fund initiatives that support effective carbon sequestration (better soil health) and water management (scarce resource management). They also prioritise upskilling in local communities to ensure project success.

Impact through innovation

Fedgroup uses technology to enhance the impact of its sustainable project investments.

Real-time data gathering and precision farming techniques are made possible by combining the Internet of Things with in-house designed meters. This helps to maximise project performance and guarantees effective resource management, such as water utilisation.

Fedgroup places a high priority on empowering local communities, even beyond environmental advantages. By guaranteeing that people can take part in project operations, upskilling programmes promote economic growth and a sense of ownership.

Transparency and building a sustainable future

A key component of Fedgroup's strategy is transparency. They place a high priority on providing more than just analytics; to demonstrate long-lasting impact, they use concrete proof such as stakeholder involvement and impact data from the ground.

“Measuring as much as we can allows us to see the real impact of each project,” says Winchester.

Fedgroup's strategy incorporates impact investing, demonstrating the company's commitment to a sustainable future. Investors, communities and the environment all gain from this strategy. The company sees a time when rising investor enthusiasm and data innovation will propel sustainable investing into the mainstream.

Fedgroup also uses innovation such as internal assessment tools and expert panels to successfully handle data limitations and quantify impact. Through a variety of media, they further inform their investors and the public about the advantages of sustainable investing.

This article was sponsored by Fedgroup.