ESG standards (Environment, Social and Governance) are metrics designed to guide responsible investing. The “S” in ESG has evolved into the financial innovation of social impact investing (SII), which promotes social benefits such as environmental protection, gender equality and human development, and also generates profits for beneficiaries and investors.
As rosy as this seems, how to get it done is far from settled. SII in the Global South is difficult, resulting in a paradox where — despite the best of altruistic intentions — the egos and saviour complexes of investors benefit more than intended beneficiaries. Recent research offers some ways to mitigate this paradox.
