Generating Positive Impact Alongside Financial Return
Increasingly, entrepreneurs and investors recognize the potential of market based tools to offer new solutions to some of our most pressing social and environmental challenges. In both developed and developing countries, this approach complements public sector and philanthropic initiatives by attracting private sector capital to develop innovative solutions.
As a global financial institution, JPMorgan Chase has embraced this approach and is actively channeling capital towards these solutions. We hope to lead the market by providing high quality, market insights and new opportunities. To date, we have deployed millions of our own capital and catalyzed millions more from our clients and partners into investments aimed at improving the lives of low-income and underserved populations around the world.
Commitment to the Impact Investment Market
As a global company, we believe that we have the responsibility to use our expertise and resources to invest in our communities and to help them address the social and environmental challenges they face. For example, many communities at the base of the economic pyramid (BoP) lack access to government services and often pay high prices to procure basic products and services from private sector providers. Impact investments can address this by harnessing more efficient, competitive business models to deliver better, cheaper and more widely-available services to low-income and excluded communities around the world. Impact investments can complement government and philanthropy by providing goods and services to these communities, thereby allowing government and philanthropy to concentrate their resources on reaching the poorest communities who cannot participate in market-based solutions.
Beyond being the right thing to do, addressing social and environmental challenges also fosters the economic growth that is core to our business as a global financial institution. As such, we view the impact investment market as a business opportunity and we facilitate growth by:
Investing J.P. Morgan's own capital in impact investment funds, which seek to improve the livelihoods of low-income and excluded populations.
Building our market-leading research franchise as a public good.
Using our investment experience and research expertise to respond to demand from our clients for impact investment solutions.
The client demand for these products and services comes in many forms:
Traditional investors are eager to utilize their capital for development aims alongside investment returns.
Philanthropists are looking for more sustainable capital utilization.
Institutions want to devote more resources to promoting sustainable growth, responding to stakeholders demands.