September 17, 2021 Ultimate News Hub

The Real Value of Impact Investing: Why It matters

Barely unknown ten years ago, Impact investing has risen to become a central theme in the investment world. Gone are the days when people invested purely for the returns up for grabs. The need to direct capital to investments that can create social, environmental, and governance benefits has grown in recent years.

Investors are increasingly turning to impact investing advisory firms such as The Altruist league in a bid to direct capital to investments that can impact employers, clients, and the society at large and generate financial value.

Likewise, impact investors are turning to impact investing services to uncover organizations that positively affect society. For instance, most of them are investing in companies that install solar panels, affordable housing and provide health screening.

Measuring Impact Investing

Amid the frenzy, the big question remains what the real value of impact is investing? While the impact investing landscape is projected to be worth $250 billion, it is impossible to measure the actual value that impact investing is having on society.

Measuring investors’ or firms’ wider societal impacts is not easy as accounting standards for measuring impact investing don’t exist. While it is difficult to measure the actual value of impact investing, it is impossible to see the kind of impact such a form of investment strategy has on the planet and society at large.

According to The Altruist League president Milos Maricic, “The real value of impact investing depends on how impact investing contributes towards having a healthier planet while eradicating poverty, wiping out hunger, expanding access to healthcare, and attaining food security.

Below are some of how the real value of impact investing is increasingly manifesting itself.

Meeting Global Challenges

Impact investors are having a significant impact in addressing various global challenges. Governments are no longer the custodians in addressing some of the world’s most pressing challenges, such as poverty, hunger, and climate change. Instead, private capital is increasingly flowing into project programs and companies to address some pressing challenges.

Environmental impact investing is already gathering pace as investors divert their investments to projects and programs to combat climate change. The true value of the investments will be realized once the climate change phenomenon is brought under control.

Achieving market-rate returns

The real value of impact investing statistics is also manifesting itself in the form of market returns up for grabs in helping solve some of the global challenges. Impact investors whose investments are directed towards providing solutions to today’s problems are well-positioned to be financial winners.

Impact investing consultants are already showing that most impact investments are already producing some of the highest market-rate returns.

Portfolio Stabilization

One of the emerging trends in impact investing is using ESG investments to stabilize investment portfolios. A study by Morgan Stanley has already shown that ESG focused funds boast on average lower volatility than non-impact funds.

Likewise, investors are increasingly leveraging ESG funds to stabilize portfolios while diversifying holdings to some of the fastest-growing ESG investing sectors.

Align Values with Investments

Impact investing advisory firms has already shown beyond proof that it is possible to pursue a triple bottom line with impact investments. Likewise, the actual value of impact investing consultants is manifesting itself in the way such investments impact people and the planet and generate financial value for investors.

Contrary to perception, values and profit no longer have to compete. Impact investing services
 such as The Altruist League have made it possible for millions of people to be responsible investors while not giving up on returns

Fuelling Important Connection

Impact investing has also proved to be highly effective in fuelling connection between big thinkers in the investment world. Human rights activists. Leading entrepreneurs, investors, and development experts are increasingly being brought together by impact investing advisory firms in a bid to solve issues destroying the planet and, in return, generate some returns.

Similarly, the actual value of impact investing lies in how it can bring together people from diverse backgrounds united by the belief it is possible to address societal issues and generate some returns in the process.

Related Posts

10 Important Information Before Iceland Is Visited

February 5, 2021

February 5, 2021

We’re talking today, before your first trip to Iceland, often things that you have to know. I receive from my...

What is Social Media Marketing and Why Does it Matter for Businesses?

June 30, 2021

June 30, 2021

Today, social media and business go hand in hand. Given the indispensability, it will not be an exaggeration to say...

The Difference Between 180 and 360 Recruitment Models

February 26, 2021

February 26, 2021

Introduction Have you ever considered taking up a job in recruitment? If you are fresh and new to the recruitment...

Five must-have technology solutions to maximize your business’ efficiency

May 26, 2021

May 26, 2021

Technology is an integral part of a successful and efficiently run operational business. It can contribute massively to speeding up...

7 Best Places to Retire

February 9, 2021

February 9, 2021

What makes an excellent place to retire? This is a tricky question, and the answers are as numerous as there...

‘10’ Top Marketing Ideas for Salon Businesses!

February 8, 2021

February 8, 2021

So, you’ve designed a website, created a logo, or even purchased business cards, but is that enough? Well, flocking new...

Buying a Business – What You Need to Know When Taking Over an Existing Business

May 26, 2021

May 26, 2021

When you are buying an existing business, there can be lots of things to think about, which can feel a...

Far Cry 6: junk or masterpiece?

June 23, 2021

June 23, 2021

Today we are having some exciting news. If you have been waiting for the Far Cry 6 release then you...

7 Tips of SEO to Grow Local Business Sales Online in 2021

February 12, 2021

February 12, 2021

Whether your company is a large multinational corporation or a young start-up, search engine optimization plays a crucial role in...

How To Renew The Trade License In Dubai?

February 17, 2021

February 17, 2021

Every organization in Dubai must have a trading license to run their Business, making it very important and renewing the...

Reasons Why Financial Planning Is Important

February 26, 2021

February 26, 2021

Introduction Have you ever encountered an unexpected financial strain in your life, say, unexpected medical bills, a car problem, or...

Saudi Arabia Export Guide

March 9, 2021

March 9, 2021

Whether you are importing a new product or enabling an ongoing business to function, exporting to Saudi Arabia can be...

Money-Saving Tips For Your International Move

February 13, 2021

February 13, 2021

International moving is a colossal life change. Once you decide to move to an entirely new county, your mind will...

7 Brain Exercises to Improve & Boost Your Memory

March 2, 2021

March 2, 2021

As we age, we don’t just lose the elasticity in our muscles, but also the cognitive function of our mind....

Fun car accessories to liven up your vehicle

May 21, 2021

May 21, 2021

Whether you commute to work by car every day or are simply a big fan of road trips, there are...