Institutions Amplify Impact with Blended Finance Approaches to Divest from Harmful Investments

VANCOUVER, BC, Feb. 27, 2025 /CNW/ - Over the past year, more institutions, such as foundations, hospitals, universities, and religious organizations, have been turning to blended finance strategies to align their investments with their values. This shift reflects a growing recognition that the capital in their portfolios can do far more than generate returns—it can drive meaningful change and help them divest from industries that don't align with their missions.

Traditionally, institutions have viewed their impact narrowly, focusing mainly on philanthropy, such as funding community initiatives or infrastructure projects. However, this approach overlooks the potential of the capital managed in their investment portfolios.

"Impact has traditionally been expressed through grants, even though these only account for a small fraction of an institution's total capital," said Shannon Ward, Chief Growth Officer at Genus Capital Management. "A blended finance approach leverages the entire portfolio to achieve greater impact and alignment with values."

Blended finance, a structure that combines grants, private and public equity, and fixed-income products, enables institutions to support projects aligned with the United Nations' Sustainable Development Goals (SDGs). According to Convergence, a global network for blended finance, this model has mobilized $213 billion in investments through 1,123 transactions over the past 15 years.

"Institutional investors are realizing the importance of scaling development finance to achieve the UN SDGs by 2030," said Stephanie Tsui, Chief Sustainability Officer at Genus. "By deploying catalytic capital that takes on greater risks or reduced returns, investors can make projects more viable and attractive to other market participants."

"We are excited to see a groundswell of institutions in Canada seeking to engage in Blended Finance as part of their capital deployment strategies." Says Vivian McCormick, Director of Impact Investing at Spring Impact Capital, "We are here to support the growing ecosystem with capacity and community building, through convening as well as collaborative knowledge dissemination and skills development. This innovative approach also enables institutions to explore impact opportunities across asset classes, from private equity and debt to public equities.

"Stakeholders, from students to patients, are increasingly demanding accountability in investment decisions," said Ward. "Finance committees not only have a fiduciary duty but also a responsibility to ensure their investments support their organization's mission."

Genus Capital Management invites institutions to explore how blended finance and impact investing can help them achieve their goals.

About Genus: Genus Capital Management is an investment counselling firm managing pension funds, endowments, trusts, foundations, and individuals from across Canada. Genus is a Certified B Corp asset manager that has been at the forefront of sustainable investing for over 30 years. Impact and sustainable investing have grown to become the core of Genus' offerings after decades of evolution designed to meet the needs of investors who are passionate about climate action.

Genus has encouraged Canadian investors that even in a resource-heavy economy, it is possible to build a financial legacy that does not contribute to climate change. Our investment capabilities encompass an extensive range of global equity, fixed income, specialty mandates and Fossil Fuel Free investments.

SOURCE Genus Capital Management Inc.

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