How Do We Leverage the Best that Capitalism Has to Offer and Redress Its Failures?

October 23, 2023

How do we leverage the best that capitalism has to offer and redress its failures?

This was one of the main topics at the The Global Steering Group for Impact Investment (GSG) Impact summit in Malaga, Spain and one that CGM is passionate about.

Our co-founder and CEO, Greg Spencer, speaking with the panel at the conference.

We had the privilege to hear from global impact leaders building an ecosystem to drive human flourishing and sustainability through their respective capital, enterprises and frameworks.

Some of these leaders included Corina Gardner, Fernando Pastor, Milena Castellnou, and Patricio Mayr.

Here are our main takeaways after two inspiring days:

1. Modern portfolio theory must now incorporate risk, reward AND impact. This is no longer a trend, but a paradigm shift for innovation and value creation.

2. Make impact evaluation and analysis part of your DNA or it will always be an optional add-on rather than a core part of your strategy. And by the way, this can actually create greater returns and financial performance as it has for CaixaBank.

3. Integrate outcome measurement and outcome-based financing 👏 into the blended capital stack as both catalytic funding but also for mid to long term incentives for portfolio companies.

4. Reporting standards and frameworks without impact valuation do not facilitate better decision making, which is why the International Foundation For Valuing Impacts (IFVI) was created.

5. More practical, multi-stakeholder examples need to be shared at the GSG summit of collaboration and application of the multiple themes discussed and presented to inspire replication of successful models.

It was inspiring to hear from Sir Ronald Cohen, International Foundation For Valuing Impacts (IFVI) (their entire team), Emmanuel Faber of ISSB, Agnes Dasewicz of DFC, Maya Ziswiler and Ibukun Awosika of the Chair Center Group and many others.

GSG President Sir Ronald Cohen onstage, alongside Agnes Dasewicz, Allison Herren Lee, Gonzalo Gortazar, and Ibukun Awosika

It was wonderful to see and reconnect with these impact leaders: Daniel Nowack, Tom Adams, Courtney Roberts, Timothy Roman, and others. It’s clear that progress is being made to better incorporate impact (measured, valued and verified positive outcomes) into capitalism to redress its failures but also clear that it is still early and much needs to happen to scale “impact investing” (in a broad sense) globally 🌍 to drive human flourishing and sustainability.

Additional guests included Andrea Serra, Dan Osusky, and Tobias Maximillian Wildner, who appeared on a panel moderated by GSG CPO Sebastian Welisiejko

We’re grateful to be on this path and amongst so many passionate leaders and organizations.

Onwards and upwards 🚀