Is it time to make an impact?
A new breed of investor is ploughing money into companies that have a positive social impact, but can they still make good returns?
by Marie-Anne Hamilton
Making charitable donations is no longer enough for many affluent individuals. Increasing numbers are seeking to make a difference through their investments, hoping that they can promote a better society as well as making healthy financial returns. They might just be onto a good thing.
According to a World Economic Forum survey, there is around $46 billion globally in impact investments – defined as investments that have a measurable social impact. Interest in the sector is increasing, and the mood was reflected at Davos this year, where the growing problem of wealth inequality was much discussed.
“Impact investing is no longer a grass-roots movement – institutions, high net worth investors and retail clients alike are realizing that their money can do good for society and still generate a potential financial return,” says Tomas Carruthers, Chief Executive of The Social Stock Exchange.
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