Forbes: How Citi Impact Investing Seeks To Drive Positive Change And Financial ReturnsForbes:
June 19, 2023 Citi Impact Investing, under the leadership of Meredith Shields, seeks to blend financial returns with societal impact, focusing on early-stage startups that address critical global challenges. The Citi Impact Fund prioritizes both the financial success of its investments and their potential to generate positive change, particularly in areas like climate change, education, healthcare, and childcare. This approach includes a significant emphasis on supporting diverse founders and solving social problems. The fund is part of a broader movement towards impact investing, which has seen substantial growth, with the market expanding significantly in recent years. The willingness of various funding sources, including government programs and private institutions like Citi, to support innovative and potentially risky ventures is crucial for addressing pressing issues such as climate change. Citi’s strategy involves investing in companies that demonstrate scalability, impact, and product-market fit, aiming to foster growth and industry change. Over 70% of the companies in the Citi Impact Fund’s portfolio are led by women and people of color, underscoring a commitment to diversity and serving underserved communities. The impact investing space is evolving, with increasing focus from corporates, boards, and customers on impact and sustainability, often under the ESG (Environmental, Social, and Governance) umbrella. This shift towards formalizing and structuring impact investing reflects a growing recognition of the importance of considering the broader effects of investment decisions.