Impact Investing Is Hot: Why Am I Worried?

ON January 10, 2018

Impact Investing Is Hot: Why Am I Worried?

Minnesota Council on Foundations

In this article for Minnesota Council on Foundation’s Giving Form I describe the challenges I see facing the field of impact investing.

After decades crying in the wilderness, I should be happy now that investing for good has hit the mainstream. Right? Mainly, I’m optimistic about the flood of philanthropically minded investors shifting their resources in pursuit of their mission, beyond the 5 percent customary for most foundations.
Perhaps it’s akin to sending your children off to college to live their independent, adult lives. I’m hopeful, but I worry.

As it moves into the mainstream, impact investing faces four threats: impact washing, insufficient diversity, lack of transparency, and risk aversion

Read on

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What I'm doing now

The tide is turning: more people are thinking about their moral, social and environmental values when they shop, play, and invest. Impact investing is going mainstream with more robust and consistent impact measurement and monitoring happening every day. The blowback on ESG (Environmental, Social, Governance) makes true impact investing (which requires impact measurement) all the more relevant. Will changing how people view money change the world? Well, it isn’t a panacea for all that afflicts us but as they say, “follow the money”. Investors have power. Use yours wisely.