A new investment trend is connecting investors with opportunities that fund positive impact enterprises and give big returns
Trying to make a positive difference in the world is not typically considered a lucrative vocation. It’s not exactly an endowment of character to capitalize upon the ill fortunes of a suffering cause, group of people, or the environment. How would such an organization justify pocketing its profit?
Over the course of the past decade, there has been a growing #investment trend that is benefitting the fortunes of the cause and the people who spend their money on it. It’s called impact investing.
“Impact investing means putting your money behind companies that generate positive environmental and social outcomes, while also trying to earn meaningful financial returns,” explains Lily Trager of Morgan Stanley, Wealth Management’s Director of Impact Investing.
Making a Difference; Making Money
So, instead of investing your money in traditional funds and stocks, you invest dollars in organizations and companies that affect social and environmental change. In other words, impact investing is the intersection of profit and purpose.
This isn’t a niche concept or budding idea. According to the report “Sustainable Signals: Asset Owners Embrace Sustainability” by Morgan Stanley: “Sustainable investing has gone from a niche investment idea to attracting enough capital to start having an impact on global challenges at a meaningful scale. Globally, more than $22.8 trillion are invested sustainably, representing more than $1 in every $4 under professional management.”
Finding the Right Impact Investment
Installing solar panels to establish a source of clean, renewable energy. Source: www.Pixabay.com
Investors looking to turn a profit while also making a difference should be on the lookout for strong organizations that stand out as authorities in social or environmental fields. These are the companies that innovate products and solutions that are geared at solving problems that range from climate change and lack of access to clean water to food shortages and disease.
A prime example of such an investment avenue is Fusion Farms, an organization in the Mayagüez district of Western #PuertoRico that is focused on building indoor, hurricane protected Controlled Environment Agriculture (CEA) aquaponics farms. These farms, which combine hydroponics and aquaculture to produce a reliable source of fresh, non-GMO fruits, vegetables, and fish, would be a boon to the island and its people, which are only just beginning to recover from the historic and disastrous Hurricane Maria in 2017.
In addition to building such farms, which would secure Puerto Rico’s food sovereignty and create hundreds of jobs for local farmworkers, Fusion Farms aims to establish a sustainable, scalable, and repeatable model and educational training program that can be applied elsewhere in similar locations with vulnerable populations and struggling economies.
Hydroponic farms grow leafy green vegetables like lettuce. Source: www.Pixabay.com
What this means for the investor is that growth isn’t capped at the completion of the first CEA facility in Puerto Rico, but rather has virtually limitless potential considering the applications of this model in stricken, impoverished villages, towns, islands, and nations across the globe.
“Impact investing has grown tremendously in large part because investors aren’t being asked to accept subpar returns,” says Lily Trager. “Plus, positive environmental and social outcomes are increasingly more measurable.”
Investing Dollars for Good
#Impactinvesting is an important channel through which organizations striving to make a difference can acquire the necessary funding, while also providing investors with big returns. We all like the idea of a green future – green is not only the color of money, but also a healthy environment – and one way we can all play our part is to invest in companies that generate positive environmental and social outcomes.