For the last 6 or so million years, human beings (or some form thereof) have walked this earth, advancing technology and quality of life with every step. And, with recent steps–say, the last 300 or so–those same humans have been slowly taking their toll on our home planet. Economic growth in the recent past has naturally bred a similar increase in the burning of fossil fuels. So how do we as a civilization contribute to economic stimulation without contributing to the global downfall of “good?”
Enter impact investing.
Impact investments, in simple terms, are investments made into businesses with the intention of returning not only an fiscal profit for the investor, but a social or environmentally progressive profit for mankind. This doesn’t always mean that an investment is made towards the shift away from the reliance on fossil fuels, as in the example above. Impact investments can also include money put into socially charitable causes.
Impact investments have boomed lately, including a forum on the idea of social impact investing at the G8 summit in 2013. Google keyword searches for the term “impact investing” have seen incredible growth in recent years, particularly since 2011. And in the position that the social and political climate of the world is in right now, impact investing is poised to trend even further up.
Often referred to as the nearly synonymous names “socially responsible investing” and “ethical investing,” impact investments have taken the world by storm, particularly among younger audiences. While many young people today may not yet ready to make large financial investments (it usually involves investments of over $1,000), some are seeking to make a positive impact in the very near future.
Millennials, the generation often chastised for its reliance on smartphones and instant gratification, have been shown to be the most socially and environmentally conscious generation yet, according to statistics compiled by the Pew Research Center. Many have chosen to reject the idea of selfishness that has been bestowed upon them, choosing a positive global impact over personal satisfaction.
This spells good news for the future of impact investing. An increase in current funding of socially responsible investments could be an indicator that further growth in the ethically and socially responsible investment sector.
The results of a recent Nielsen survey indicated that 55 percent of respondents worldwide have claimed that they would pay more for a product from a business that is “committed to positive social and environmental impact.” A similar survey, also from Nielsen, indicated that the findings of the Pew Research Center are true–Millennials are indeed the most socially and environmentally-conscious generation. Over half of those who indicated that they check product packaging for socially responsible practices were members of “Gen Y.”
With impact investments steadily on the rise since the coining of the term in 2007, skeptics and supporters alike can turn their attention to the future, where statistics could indicate that ethical investments will undergo an even greater boom.
Here’s to looking towards the future.
from Mark Cohen’s Finance Website http://ift.tt/23BMSRy
Mark Cohen NYC 