More and more investors are turning their attention to investing with an aim of making an impact — for themselves, their communities, and the world. Impact investing, also referred to as socially responsible investing (SRI), is a powerful way to grow both your portfolio and your impact on social and environmental issues. In this article, we’ll explore how impact and SRI investing can have a positive and lasting effect.
Impact and sustainable, responsible, and impactful (SRI) investing are relatively new types of investments. The goal of such investment strategies is to make a positive impact on society and the environment. They are becoming increasingly popular and are able to achieve a positive return on investment alongside creating a measurable social benefit.
The benefits associated with impact and SRI investing include:
- Lower risk: investments are less vulnerable to market and economic volatility.
- Increased return: investments can produce higher returns than traditional investments.
- Transparency: investments are more easily traceable than traditional investments.
Furthermore, due to the growing awareness of environmental, social, and governance (ESG) considerations, corporations and other stakeholders are becoming increasingly engaged in helping to improve the sustainability of their companies and industries. This allows for more informed investment decisions that will help steer humanity in a more sustainable direction.
The future of investing is here: SRI investing and impact investing provide the opportunity for us to move beyond simply managing our money to creating positive impact in the world. By tapping into the power of SRI and impact investing, we can orient our financial futures not only to success, but to impact that benefits ourselves and our planet. As stewards of our planet, it’s time to invest in a better tomorrow.