impact investing is the key to unlocking real change
Yes, politics matter. And yes, philanthropy is vital. We can't fix our problems without them. It's also true that unless we reshape the financial system, we'll never catalyze the full extent of the change we want to see in the world. Which means we, as investors, have to lead the charge by voting through our investments. If the "right" companies and projects are supported, and the "wrong" companies and projects are avoided, it will have a profound influence on solving the immense challenges in front of us.
Definition
in order to do it, you first need to define it.
- Here’s the dictionary definition (so to speak): Impact Investing means investing in companies, organizations, and funds with the intention of generating social or environmental impact, while also making money in the process.
- Another way of saying it (and a bit less boring too): The whole point of impact investing is to use money and investments for good, instead of only thinking about profit.
- Fun fact: While Impact Investing has origins that go back to the biblical times, the first real modern example of responsible investing success was during Apartheid in South Africa. It is believed that due to massive divestment from companies doing business in South Africa in 1993 ($625 billion worth), Apartheid was successfully defeated and led to a new constitution and the release of Nelson Mandela from prison.
why we need it
In a world driven by capitalism, we must use the financial markets to drive change
For better or worse, money makes the world go round. And until there's a new system, we must work with the one we've got. Which means taking dead aim at the largest driver of our global emergencies: financial markets. Companies have a mandate to maximize profits regardless of the outcome. Which means that we need to start investing more money in companies and funds that are making profits by solving global challenges.
Whether it's investing in......
Climate Change (like clean energy or sustainable materials like plastic-alternatives), Sustainable Food that uses substantially less water/land/energy (like plant-based foods and regenerative agriculture), or Diverse companies/funds (for example, female founders receive approximately 2% of all venture capital)
......there's no limit to the number of lucrative and impactful initiatives you can shift your money into.
don't get stuck
there's no shortage of roadblocks you'll face along the way
Many of you reading this know that it's not always easy to align your wealth with your worldview. Sometimes it's your parents or advisor telling you not to. Or maybe it's a voice inside your head that's afraid to be different or seem weird. Or maybe this is all new to you and you're not convinced it's the right approach.
Whatever it is, don't let these things keep you stuck in the mud. If you've come to this website, deep down you know that this can be done. So have a look below for some of the things you're likely to be experiencing and how to get around it so you can follow your heart and make a lot of money in the process.
- "You'll make less money"
- "Just worry about investing for profit and solve problems through philanthropy"
- What if you don't have control of your inheritance yet?
- What if you don't have enough in savings yet?
- Is it even worth it? How can you possibly make a dent?
- How do you even find the "right" companies and funds to invest in?