Measuring Impact Investing<\/strong><\/p>\nAmid 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.<\/p>\n
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.<\/p>\n
According to The Altruist League president Milos Maricic, \u201cThe 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.<\/p>\n
Below are some of how the real value of impact investing is increasingly manifesting itself.<\/p>\n
Meeting Global Challenges<\/strong><\/p>\nImpact 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.<\/p>\n
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.<\/p>\n
Achieving market-rate returns<\/strong><\/p>\nThe 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\u2019s problems are well-positioned to be financial winners.<\/p>\n
Impact investing consultants are already showing that most impact investments are already producing some of the highest market-rate returns.<\/p>\n
Portfolio Stabilization<\/strong><\/p>\nOne 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.<\/p>\n
Likewise, investors are increasingly leveraging ESG funds to stabilize portfolios while diversifying holdings to some of the fastest-growing ESG investing sectors.<\/p>\n
Align Values with Investments<\/strong><\/p>\nImpact 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.<\/p>\n
Contrary to perception, values and profit no longer have to compete. Impact investing\u00a0services
\n<\/strong>\u00a0such as The Altruist League have made it possible for millions of people to be responsible investors while not giving up on returns<\/p>\nFuelling Important Connection<\/strong><\/p>\nImpact 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.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
Barely unknown ten years ago, Impact investing has risen to become a central theme in the investment world. Gone are…<\/p>\n","protected":false},"author":2,"featured_media":659,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[15,19,20],"tags":[315],"_links":{"self":[{"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/posts\/658"}],"collection":[{"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/comments?post=658"}],"version-history":[{"count":1,"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/posts\/658\/revisions"}],"predecessor-version":[{"id":660,"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/posts\/658\/revisions\/660"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/media\/659"}],"wp:attachment":[{"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/media?parent=658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/categories?post=658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyhacked.com\/wp-json\/wp\/v2\/tags?post=658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}