Impact Investing

What is Impact Investing?

Impact investing is an investment approach that seeks to generate measurable positive environmental or social outcomes alongside a financial return.

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Unlike broader ESG strategies – which may integrate environmental, social and governance factors into traditional analysis or exclude certain sectors – impact investing allocates capital to organisations whose core business activities are intended to address defined sustainability challenges.

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Impact strategies often align with recognised frameworks such as the UN Sustainable Development Goals (SDGs), EU Taxonomy criteria and established impact measurement standards.

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As with all investments, financial returns and sustainability outcomes are not guaranteed and capital is at risk.

Why Impact Investing Is Moving Into the Adviser Mainstream

Retail investors are paying more attention to sustainability issues, and sustainable solutions are therefore becoming more commonplace in the MPS market.

The Impact portfolios can support advisors by offering a dark green investment solution for those investors who have stringent requirements around environmental and social considerations They go beyond exclusion-based ESG and enhance annual review discussions with structured sustainability reporting.

Impact investing is not suitable for all clients and should be assessed alongside risk tolerance, time horizon and financial objectives.

Why ebi is Different

Fully Index-Tracking Impact Implementation

ebi’s Impact Portfolio Suite is constructed using index-tracking thematic ETFs and a global green bond index fund.

This provides rules-based portfolio construction, transparent underlying holdings, and cost-efficient implementation, compared to actively managed solutions.

100% Article 9 Underlying Funds

All underlying funds within the suite are classified as SFDR Article 9

SFDR Article 9 indicates that sustainable investment is the stated objective of the fund. Classification is based on fund manager disclosures and does not guarantee financial returns or specific environmental or social outcomes.

Global Diversification Across Defined Impact Themes

The equity allocation provides exposure to approximately 210 companies across defined sustainability themes, while the fixed income allocation provides exposure to approximately 1,100 global green bond issues¹.

Impact themes include Environmental Impact, Sustainable Future of Food and Global Sustainable Infrastructure.

Equity and fixed income data as of 31/01/2026

Institutional Green Bond Exposure

The fixed income allocation seeks to track the Bloomberg MSCI Global Green Bond Index and aligns with ICMA Green Bond Principles.

Tolerance-Based Rebalancing Framework

Portfolios are monitored daily using an in-house algorithm and rebalanced when pre-set tolerance bands are breached to maintain risk alignment and minimise unnecessary trading.

Cost-Conscious Implementation

Impact portfolio OCFs range from 0.13% to 0.52%, excluding ebi’s 0.12% DIM fee. Additional costs, such as platform/custodian charges and transaction costs, also apply.

Portfolio Structure & Risk Profiles

The Impact Portfolio Suite is available in 11 risk-rated variations, from Impact Bond through to Impact 100.

Each portfolio combines impact-focused equity exposure and global green bond allocation designed for long-term investors willing to accept potential volatility associated with thematic exposures.

Key Considerations and Risks

Impact investing represents a specialist allocation and may involve thematic concentration, exposure to growth-oriented sectors and emerging markets, and higher tracking error versus broad market indices.

The value of investments and income from them can fall as well as rise and investors may receive back less than originally invested.

Past performance is not a reliable indicator of future results.

Impact Investing FAQs for Financial Advisers

How does impact investing differ from ESG integration?

ESG integration seeks to reduce exposure to those companies which are most at risk because of their track record on environmental, social and governance issues. Screening these companies out can have a positive impact on a portfolio’s risk-return characteristics. Impact investing goes further by allocating capital specifically to investments that seek measurable environmental or social outcomes alongside financial returns.

Impact strategies may exhibit greater thematic concentration and potential divergence from broad market indices.

Are ebi Impact Portfolios suitable as core allocations?

Suitability depends on an individual’s client objectives, time horizon and risk tolerance, and advisers remain responsible for assessing appropriateness in line with their suitability obligations.

What does Article 9 classification mean?

SFDR Article 9 classification indicates that sustainable investment is the stated objective of the underlying fund.

Classification is based on fund manager disclosures and may change. It does not guarantee financial performance or specific environmental or social outcomes.

How is impact measured?

Impact reporting relies on data disclosed by underlying fund managers and recognised frameworks such as the EU Taxonomy alignment metrics and other sustainability standards.

Data methodologies may vary between managers and outcomes are not guaranteed.

Does impact investing increase risk?

Impact strategies may involve thematic exposure, growth-oriented sectors and emerging markets, which can increase volatility and tracking error relative to broad market indices.

Diversification across equity and global green bond allocations is designed to manage risk within each portfolio’s stated profile.

How does this support advisers under Consumer Duty?

The Impact portfolios can help advisers demonstrate how a client’s investments have delivered measurable positive impact and how their holdings align with the client’s stated sustainability preferences.

However, advisers remain responsible for assessing suitability, value for money and ensuring good client outcomes in line with Consumer Duty requirements.

Download the ebi Impact Product Profile

Download detailed information on portfolio construction methodology, strategic asset allocation, underlying funds, risk variations, charges and implementation structure.

Disclaimer

Investing in impact strategies and Article 9 SFDR ESG products may result in a more concentrated and less diversified portfolio. This approach may limit the investment universe and increase exposure to specific sectors, themes, or issuers, which could increase volatility and the risk of loss compared to more broadly diversified strategies.

The content on this site is created specifically for independent financial advisers and other professionals. Information contained on the following pages should not be used or relied upon by private investors.

The value of investments can go down as well as up and it is possible to get back less than the amount invested. Past performance is not a reliable indicator of future performance.

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