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IMPACT INVESTING
****Blurb on Impact Investing.
Impact Investing: Definition
"Impact investments are investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return." (GIIN)
Impact investments can be made in emerging and developed markets across all asset classes. A wide variety of investment strategies enable you as the investor to make the impact they envision.
While impact investing is a relatively new concept, there are many similar concepts or terms. For example, "impact investments" are also called "mission-related investments". But "mission-related investments" are not the same as "program-related investments". We've outlined the different terms below:
Impact Investing: PROCESS
1. Pick Your Problem
There is no shortage of problems in the world. With impact investing, you as the investor can choose to have a lasting impact in an area you care about.
2. Pick Your Partner
Impact investing is not limited to large corporate financial institutions. Nonprofits can help you get started with impact investing.
3. Invest with Intent
A common phrase in the impact investing world is "intentional impact". As you move through the process, you make intentional investments to achieve intentional impact.
Impact Investing: Measuring Impact
What is Impact?
Impact is "the portion of the total outcome that happened as a result of the activity of the venture, above and beyond what would've happened anyway." (Rosenzweig, emphasis added).
Size, type, and lifetime of an investment determine how its impact is measured.
Often, the areas an investment impacts is compared to a 3 legged stool.
3 Legs of Impact
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You
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World
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Society
Check out our blog post on how impact is measured
Impact Investing: Opportunity
"In the middle of every difficulty lies opportunity."- Albert Einstein
Poverty, hunger, and violence are few of the many problems plaguing the world. But, there are two sides to every coin. In this case, within these complicated problems are opportunities.
Opportunity Zones
Opportunity zones are communities in economic distress in the U.S., nvestors can use capital gains to fund investments in these communities. These investments will help encourage financial growth within the communities. Investors then receive tax benefits in exchange for investing in these communities.
Check to see if you live in an Opportunity Zone on the map below!
Sustainable Development Goals
Sustainable Development Goals were set by the U.N. to fix issues that affect the world by 2030.
Check out this blog post on the Sustainable Development Goals