Millennials and Gen Z often have the stereotype of being lazy and sensitive, but these generations have played a huge role in driving the popularity of impact investing.
This strategy references the prioritization of businesses who aim to make a positive impact on society. This is usually done through sustainability, climate change, healthcare, poverty, and other causes that directly correlate and contribute to the greater good.
According to The Global Impact Investing Network, Impact investing includes the following factors: intentionality, investment with return expectations, range of return expectations and asset classes, and impact measurement.
Intentionality refers to the want and need to have a positive impact on society by investing into a company’s cause.
Although some companies believe that socially conscious efforts should be reserved for charitable causes, impact investing is accomplished through both profits and charitable donations.
Impact measurement is another huge indicator that differs from simply investing money into a charity. Leaders should ensure that these contributions are being realized or at least making progress over time.