Norman Nabhan is a longtime member of Graystone Consulting Houston, a Morgan Stanley business where he provides family offices and institutional clients with a wide range of investment consulting solutions. In 2016, Norman Nabhan authored a Thompson Reuters article in “Taxation of Exempts” and explored the emerging landscape of impact investing.
In theory, impact investing is a practice in which a strict focus on returns is forgone in order to follow a socially conscious investment pathway. As Mr. Nabhan describes it, this is only half the story. As several investment manager return databases show, numerous asset managers have achieved excellent returns on investment while pursuing equity positions in corporations with well-defined environmental, social, and governance (ESG) dynamics. There is compelling evidence that a focus on strong environmental, social and governance issues can reduce headline risk for investors.
In addition, a number of professional asset management firms have taken on roles as activist investors and filed shareholder resolutions that have pushed companies into adopting positive ESG corporate policies. Issues in which progress has been made range from diversity in the boardroom and workforce to moving toward a sustainability commitment.