In light of everything that has been going on in our country lately, many Americans have started to look into social change and social impact. How can they create social change in their communities? How can we be the change we want to see? How can my actions have a social impact?
Furthermore, during this pandemic, many Americans have also started to look deeper into their finances. Should we start a high yield savings account? Should we start investing in companies or stocks? What if I told you that you could combine these two sentiments? Yes, you could invest in something that will have a social impact while giving you a financial return. Impacting investing aims to generate specific beneficial social or environmental effects in addition to financial gains. This type of investing is sometimes called social impact investing, double bottom line investing, and social change investing. These types of investments use your money to invoke social change while receiving a financial return. It is truly a win-win.
Now impact investing isn’t just for big companies, but for non-profit foundations and entrepreneurs. There are several types of impact investing. You can invest your money in developed or emerging markets in a variety of industries, such as education and healthcare. Wouldn’t it be amazing to know that you’re helping an overloaded healthcare system or underfunded schools? Impact investing gives investors a chance to give back to communities that have been neglected or overlooked.
Now, I’m sure you may want to know, how can we trust our money is going to the right company? That’s when we check out the company’s commitment to corporate social responsibility (CSR), their sense of duty to create a social impact in society as a whole. For example, let’s say you’re really into renewable energy and want to invest. Look into companies that are all about renewable energy and invest your dollars with them. Another good way to get started is to seek out a “b-corp” bank such as Sunrise Banks or b-corp companies such as Peace Coffee. They are dedicated to producing public benefits (and we’re proud to say that our company, Cogent Consulting just became a PBC last year!). With impact investing, you will be helping to invoke a social impact while receiving a financial win. Like we said before, it’s truly a win-win.
The latest science says we are living through an “endemic” not a pandemic, anymore (take a listen to Science Friday’s 9/17 podcast). Rather than finding this news thoroughly depressing, I’m doing my best to embrace it. I’ve never thought there would be some kind of magic getting “back” to normal: only “Build Forward Better” as we said in our June, 2021 impact investing conference. So, let’s share what we’ve learned over the last 18 months. I’ve learned that people really do want to take action and explore new ways of addressing society’s ills such as climate change and racial injustice. What did you learn? I’d love to hear. Tweet me @susan_hammel or email or leave a comment below.