5: Financial Investing for Good- Impact Investing and Angel Investing with Elizabeth Coston (Impact Engine)
We draw a funny divide between our philanthropy and financial investing. One lives on one side of the house, the other firmly tucked away on the other side of the house. Yet what we often fail to realize is that our investments drive the growth of the companies we invest in.
The same causes you care about as a donor, you can care about as an investor.
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helping to promote their endeavors. Which seems quite silly when we turn to the other side of the aisle and donate to organizations dedicated to environmental conservation or social issues.
This episode looks at the emerging middle ground- impact investing. We take a high level look at what impact investing is, and then narrow in to see how it can help small start-ups such as Zero Percent and Edovo with their unique iPads for prisons. These same concepts have also shaped policies and impact at companies such as TOMS shoes, McDonald’s, Ben and Jerry’s and Unilever.
By redefining the way we look at our investments, we can start to spur substantial growth in companies designed for good.
Think about it. Currently we have $60 trillion in assets under management. Let’s be honest. I highly doubt my personal investments are invested in companies that are creating a positive impact. Are yours? That’s $60 trillion going unchecked in the market minus your investor reviewing returns.
In comparison $300 billion is donated to charity. That is an incredible amount. But when you look closer, it’s 1/2%. Not even a whole percent compared to what is invested in the market!
Can you imagine the power if that other 99.5% were invested in companies working to make the world a better place? These companies aren’t all risky bets. They are companies founded on solid principals, creating sustainable products and ultimately appealing to the younger generations. Sounds like a safe bet to me.
That’s why the work that Impact Engine is doing is so inspiring. Even if we don’t hit 99.5% in the next 5-10 years, we’re expected to hit 1% invested through impact investing strategies. At $600 billion, that’s a positive impact.
Resources mentioned include:
“Don’t put off until tomorrow what you can do today.”
To connect with Elizabeth and Impact Engine:
To learn more about impact investing: