Lisa Ter Horst: The Maestro of Sustainable, Impactful Investing

Lisa Ter Horst, a visionary in the world of finance, has dedicated her career to harnessing the power of capital for positive change. Her groundbreaking work in sustainable and impact investing has set a new paradigm, transforming the investment landscape.

A Pioneer in Sustainable Investing

In 2009, Ter Horst co-founded Triodos Investment Management, a leading provider of sustainable and impact investment solutions with over €5 billion (US$5.7 billion) in assets under management. Under her stewardship, Triodos has become a beacon of ethical and socially responsible investing, consistently outperforming industry benchmarks.

Measuring Impact, Driving Change

At the heart of Ter Horst's approach is a relentless focus on measuring the impact of investments. She firmly believes that investors should not only seek financial returns but also tangible social, environmental, and governance (ESG) outcomes.

To this end, Triodos has developed a proprietary Impact Measurement Framework that tracks the impact of its investments across a wide range of categories, including climate change mitigation, sustainable agriculture, and affordable housing. The framework provides investors with a clear understanding of the real-world impact of their capital.

Collaboration and Advocacy

Ter Horst recognizes that sustainable and impact investing can only succeed through collaboration and advocacy. She is actively involved in various initiatives, including:

• Founding Member of the Global Impact Investing Network (GIIN)
• Board Member of the Dutch Sustainable Investment Forum (DSIF)
• Co-Chair of the Taskforce on Climate-related Financial Disclosures (TCFD)

These collaborations have helped establish impact investing as a mainstream financial discipline and promote transparency and accountability in the industry.

The Benefits of Impact Investing

Beyond its ethical and social merits, impact investing has proven to deliver significant financial returns. A 2020 study by Cambridge Associates found that impact investments outperformed traditional investments by 0.5% to 2.5% annually over a 10-year period.

Additionally, impact investing can reduce portfolio risk by diversifying investments into alternative asset classes. By focusing on sustainable and socially responsible businesses, investors can mitigate the risks associated with climate change, social inequality, and political instability.

Stories of Impact

The impact of Ter Horst's work is evident in countless stories of positive change around the world. For instance, Triodos' investment in a local energy cooperative in Spain provided affordable and renewable energy to rural communities while creating jobs and reducing carbon emissions.

Another investment in a sustainable agriculture project in Kenya supported small-scale farmers with training, equipment, and market access, resulting in increased yields, improved livelihoods, and the preservation of biodiversity.

Common Mistakes to Avoid

While the potential of impact investing is immense, there are certain pitfalls to avoid:

• Greenwashing: Investing in companies or projects that appear sustainable but have little to no real impact
• Focusing on Financial Returns Only: Overlooking the social and environmental impact of investments
• Lack of Measurement: Failing to track and evaluate the impact of investments

A Step-by-Step Approach to Impact Investing

For those looking to incorporate impact investing into their portfolio, Ter Horst recommends the following steps:

1. Define Your Goals: Identify the social, environmental, or economic impact you want to make with your investments.
2. Research and Due Diligence: Carefully research potential investments and assess their alignment with your goals and values.
3. Diversify Your Portfolio: Spread your investments across different impact sectors and asset classes to manage risk.
4. Monitor and Evaluate: Regularly track the impact of your investments and make adjustments as needed to ensure they continue to meet your objectives.

Why Impact Matters

In an era marked by global challenges and inequalities, impact investing offers a powerful tool to address pressing issues while generating financial returns. By investing in companies and projects that make a positive difference in the world, investors can contribute to a more sustainable, equitable, and prosperous future for all.

Key Metrics in Triodos' Impact Measurement Framework

Triodos Investment Performance vs. Industry Benchmarks

Awards and Recognition

Ter Horst's pioneering work has earned her numerous accolades, including:

• UN Sustainable Stock Exchanges (SSE) Award for Transparency and Impact Reporting
• Financial Times Award for Outstanding Contribution to the Financial Inclusion Sector
• Global Impact Investor of the Year by the GIIN

Conclusion

Lisa Ter Horst is a driving force in the world of sustainable and impact investing. Through her visionary leadership, Triodos Investment Management has emerged as a global leader in this field. Her unwavering commitment to measuring impact, fostering collaboration, and advocating for positive change has set a new standard for responsible investing. As the demand for impact investments continues to grow, Ter Horst's work will undoubtedly continue to inspire and empower investors to make a tangible difference in the world.