Sustainable businesses can be a hit or miss as investment targets. Staying true to environmental conservation and responsibly-sourced goods most of the times cost a lot of money. However, impact investing can be different, and instead, give you promising results in the long future both for you and for the world. Read the reasons below!
More funding sources for philanthropic budgets and public sector resources
A lot of businesses have limited amount of sources for philanthropic budgets and public sector resources. Compared to the environmental and social issues happening in the world, the incoming fund to such issues is very limited. Impact investing can further amplify the need for environmentally and socially conscious issues through the network of impact investors.
Impact investing is more than a personal benefit
A lot of businesses practices ignore the social and environmental issues really deplete the world we live in. With the world slowly deteriorating, there will soon no more natural and human resources available for business operation. To ensure the future of thousands of businesses’ operations, more people need to realize the importance of impact investing. Resource conservation and healthier workforce will also convert to greater profits.
Millennials and impact investing
According to Adec Innovations, Millennials, which currently take over the biggest percentage of the world’s millionaires, have a lot of interest in sustainable and socially responsible investments. Adec Innovations further quoted US Trust’s 2014 survey mentioning that majority of millennials’ investment decision is weighed by their social, political, or environmental values.
The research continues that most of the millennials are confident investments in socially environmentally conscious corporates can still generate market-rate returns. In sum, the demand for impact investment is on a rise, and may unlock more potentials in the future.
Organizations projects, but make it profitable
Adec Innovations pointed out that impact investing can help organizations become much more independent. One example mentioned is the development of a business plan for a soup kitchen that can yield revenue and investment returns. Such a business plan can attract more donations for the organization, and make them less depending on donations and state subsidies.
Stronger, broader stakeholders’ relationship and network
It is uncommon for people to meet through business relationships. Likewise, like-minded investors and entrepreneurs can build their bond through impact investing. Whether they come from profitable and non-profitable sectors, possibilities for an alliance always exist.
Read also: Impact Investing: Balancing World and Money