# Making ESG Investing More Inclusive
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-03-30
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Inclusive ESG Investing Opportunities for Retail Investors
Meta Description: Learn how AVANA Companies is opening up ESG investment opportunities to retail investors, empowering individuals to support ESG goals and build their wealth.
URL: https://financedigest.com/making-esg-investing-more-inclusivehtml

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_By_ **_Sundip Patel_** _, co-founder and chief executive officer, AVANA Companies_

The past few years have seen institutional investors increasingly aware of the benefits – both to their finances and to their reputations — of putting more of their money into projects that meet environmental, social and governance (ESG) goals. Indeed, their large size affords institutions the resources, knowledge and skill sets needed to accurately assess the risk and returns of potential investments in projects ranging from solar energy to biogas production to job creation.

ESG [investing has a way](https://www.financedigest.com/10-ways-to-put-together-a-killer-investment-pitch.html "10 WAYS TO PUT TOGETHER A KILLER INVESTMENT PITCH") to go, though, in making such investment opportunities available to retail investors who care about supporting these same goals and building their own wealth. Making these opportunities more [inclusive means that we in the financial](https://www.financedigest.com/why-banks-could-stand-to-learn-a-thing-or-two-about-financial-inclusion-from-fintechs.html "Why banks could stand to learn a thing or two about financial inclusion from fintechs") sector must work harder to diversify the mix of investors in our projects.

**Our beginnings**

Inclusive investing is personal for me. I was raised in Africa and as a young man emigrated to the United States, where I found a world of [opportunities that have allowed me to spend more than 30 years in commercial banking](https://www.financedigest.com/uk-retail-banks-is-irrelevance-curtailing-opportunity.html "UK Retail Banks: Is Irrelevance Curtailing Opportunity?"). Inclusive investing matters to society, too, because everyone deserves the opportunity to participate in maximizing the investment earnings on their capital.  Beyond that, inclusive investing is the right thing to do. There is no [reason why institutional investors](https://www.financedigest.com/despite-the-headwinds-investors-have-important-reasons-to-be-cheerful.html "DESPITE THE HEADWINDS, INVESTORS HAVE IMPORTANT REASONS TO BE CHEERFUL") cannot share some of the massive amounts of money they make with retail investors. Both parties can win when retail investors have access to projects whose goals they care about.

**Extending** [investment opportunities to retail investors](https://www.financedigest.com/why-are-investors-checking-out-of-uk-buy-to-let-and-checking-in-to-hotel-investment.html "WHY ARE INVESTORS CHECKING OUT OF UK BUY-TO-LET AND CHECKING IN TO HOTEL INVESTMENT?")

I co-founded AVANA Companies in 2002, with offices in the Middle East and in the United States, and we are dedicated to stimulating local [economies and contributing to clean energy development globally](https://www.financedigest.com/world-bank-warns-global-economy-could-easily-tip-into-recession-in-2023.html "World Bank warns global economy could easily tip into recession in 2023"). We want to [see institutional investors make a portion of their ESG investments available to retail](https://www.financedigest.com/uk-retailers-see-40-jump-in-boxing-day-shoppers-springboard.html "UK retailers see 40% jump in Boxing Day shoppers -Springboard") investors who normally wouldn’t have access to these investments, much less have the resources to  adequately assess them.

[Consider the growing influence of women in the gulf such as Saudi Arabia where opportunities for women and women in business](https://www.financedigest.com/pizza-firm-dp-eurasia-considers-divestment-of-russian-business.html "Pizza firm DP Eurasia considers divestment of Russian business") positions are growing.  As a father, my motivation behind creating these opportunities, was teaching my daughter how to invest. With education and accessibility to investments, women and other under-represented investors can become co-investors in companies with ESG goals.

AVANA’s ESG lending side includes AVANA Capital and the LendThrive platform, which have professional [credit analysts to evaluate the risk of every loan](https://www.financedigest.com/6-reasons-to-take-a-car-loan-from-a-credit-union.html "6 Reasons to Take a Car Loan From a Credit Union") and which fully fund loans to small businesses that create jobs and contribute to clean energy progress. The company’s ESG investment side includes the EqualSeat™ platform, developed to democratize [returns for retail investors](https://www.financedigest.com/certainty-in-an-uncertain-world-post-brexit-investors-turn-to-commercial-property-and-fixed-returns.html "Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns") from AVANA’s loans to these businesses by co-investing with institutional investors .

When it launches later this year, EqualSeat will take [projects that institutional investors have vetted and invested](https://www.financedigest.com/investing-trends-and-projections-for-2023.html "Investing Trends and Projections for 2023") in, put portions of those projects on the platform, and allow retail investors to choose which deals they want to invest in and how much they will invest. EqualSeat™ will provide these individual investors access to institutional-quality commercial debt investments, with low minimum investments, and an opportunity for dependable monthly cash flow.

**Fintech’s role in democratizing ESG investing**

Fintech platforms such as EqualSeat act as online marketplaces to connect financial institutions and investors with small businesses that need capital, they are an excellent [way to make ESG investing](https://www.financedigest.com/a-two-way-street-chinese-investment-in-the-uk-will-benefit-both-economies.html "A TWO WAY STREET: CHINESE INVESTMENT IN THE UK WILL BENEFIT BOTH ECONOMIES") more inclusive. The mobile platforms are well-suited to reaching retail investors, whether in the United States or abroad, and making it easy for them to participate in the professionally analyzed deals. With these platforms, retail investors will have a seat at the table; they will have a voice in the company’s environmental, social or governance goals; and they will know they are doing good with their money.

For the above mentioned EqualSeat™ platform , the institutional [investors will give up 30% of a loan to retail investors as an opportunity](https://www.financedigest.com/the-vc-opportunity-breaking-down-barriers-for-private-investors.html "The VC opportunity: breaking down barriers for private investors ") to allow them to co-invest with them for a brief 90 day period.  Institutional [investors and whatever liquidity they get as a result of allowing co-investments from retail investors gets re-invested back](https://www.financedigest.com/glencore-courts-120-teck-investors-for-bid-backing-as-spinoff-vote-looms-source.html "Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source") into other loans. The [investment risk and exposure is limited for the retail investors as they did not put up the initial funds](https://www.financedigest.com/plastic-antibody-developer-strengthens-board-following-further-investment-from-mercia-fund-management.html "“Plastic antibody” developer strengthens board following further investment from Mercia Fund Management"). There is also no obligation for them to take on the entire 30% allocation. They have a choice to take on as much or as little.  My mission from day one was to make sure we democratize the investments and provide socially responsible investments which are central tenets of ESG.

**The sun is shining on renewable energy projects**

Renewable energy is a key focus for AVANA, with our AVANA Capital group financing construction, equipment, and development of clean energy projects and its ability to provide employment in factories and on [job sites](https://www.financedigest.com/ford-to-make-call-on-europe-job-cuts-by-mid-feb-as-buyers-circle-german-site.html "Ford to make call on Europe job cuts by mid-Feb as buyers circle German site"). Examples of recent funding include:

- An $8.4 [million loan to SolRiver to buy land and build a solar farm that is providing electricity](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") to Portland (Ore.) General Electric Co. The [project generates 198 million kilowatts per hour of power and has eliminated the burning of 146 million pounds](https://www.financedigest.com/britain-announces-205-million-pound-auction-for-renewable-power-projects.html "Britain announces 205 million pound auction for renewable power projects") of coal.
- A $39 [million loan to Generate Capital to finance](https://www.financedigest.com/optable-closes-20-million-series-a-financing-broadens-investor-syndicate-in-new-round.html "Optable Closes  Million Series A Financing, Broadens Investor Syndicate in New Round") energy-efficient equipment, including lighting and heating, ventilation, and air conditioning, for a large school district in Hillsborough, Fla.
- A $22 [million construction loan to Carbon Cycle Energy to convert a waste disposal system at a pig farm and pork producing plant](https://www.financedigest.com/germanys-merck-to-invest-300-million-euros-in-us-gas-plant.html "Germany’s Merck to invest 300 million euros in US gas plant") in Warsaw, N.C., to a renewable natural gas (biogas) facility. The project will improve air quality around the plant, produce hundreds of new jobs, and reduce methane emissions equivalent to 680 million tons of coal.

Most recently, AVANA is providing more than $50 million in loans to G&S Solar, which is developing more than 50 rooftop community solar projects in New York City. G&S Solar will lease rooftops from commercial [building](https://www.financedigest.com/public-power-corp-rwe-to-build-five-solar-farms-in-greece.html "Public Power Corp, RWE to build five solar farms in Greece") owners and install solar panels that will help building owners and residents save on their utility bills. The solar installations also will [create jobs](https://www.financedigest.com/italy-jan-jobless-rate-edges-up-to-7-9-with-35000-jobs-created.html "Italy Jan jobless rate edges up to 7.9%, with 35,000 jobs created") and contribute to New York’s clean energy goals.

**Niche industries unite communities and institutional investors under ESG**

AVANA also focuses its ESG investments on hospitality and commercial real estate, two areas we chose because they  meet the needs and wants of creating employment in tertiary communities and of institutional investors. The hospitality [industry provides significant numbers of jobs](https://www.financedigest.com/best-paying-jobs-in-industrial-specialties.html "Best paying jobs in industrial specialties") and increases tourism in a community, while commercial real estate allows small business owners to own their own buildings, grow their businesses and enter new markets.

As consumers and investors become more aware of the [ESG goals of the companies with which they do business, measuring the impact of ESG investments beyond the financial](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") side is important. A renewable-energy investment can be measured by the number of jobs created, the amount of energy created, and the number of homes powered by renewables. Governance can be measured by the [diversity of genders and ethnicities in a company](https://www.financedigest.com/britain-toughens-up-diversity-targets-for-uk-companies.html "Britain toughens up diversity targets for UK companies"). Like many other firms, we are working on how to audit the impact our investments make on ESG goals across a broad spectrum of criteria.

**Looking to the future**

Inclusive investing will not be achieved overnight. Even if institutional investors make a 1 percent adjustment in opening their [portfolios to co-invest with  retail](https://www.financedigest.com/incentive-fm-adds-angel-central-to-retail-portfolio.html "INCENTIVE FM ADDS ANGEL CENTRAL TO RETAIL PORTFOLIO") investors, they will be doing that much more than they did a year before. Over the next 10 years, we believe that more corporations will be driven to become more conscious of ESG investing and it will become part of the [investment world’s](https://www.financedigest.com/breaking-the-stigma-men-and-mental-health-in-the-world-of-investments.html "Breaking the Stigma: Men and Mental Health in the World of Investments") DNA. [Sharing gains](https://www.financedigest.com/bayer-shares-gain-on-prospect-of-second-activist-pushing-for-change.html "Bayer shares gain on prospect of second activist pushing for change") with customers is how socially responsible investing can work.

**_About AVANA Companies_**

With $1.1 billion in [assets under management](https://www.financedigest.com/french-watchdog-fines-h2o-asset-management-executives-over-tennor-investments.html "French watchdog fines H2O Asset Management, executives over Tennor investments"), AVANA Companies is dedicated to stimulating local economies and contributing to clean energy development. AVANA is headquartered in Glendale, Ariz., USA, Pune, India and  in Manama, Bahrain, and serves small business [owners and institutional and UHNW investors across the United](https://www.financedigest.com/soccer-manchester-united-fans-want-more-say-under-any-new-owners.html "Soccer-Manchester United fans want more say under any new owners") States and globally.


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