Those who influence the allocation of capital have an obligation to consider whether current practices solve or perpetuate the challenges impact investing aims to address.
An increasing number of investors—individuals and institutions alike—are deploying capital in more socially and environmentally conscious ways. Under the present economic system, which endlessly extracts natural and capital resources, and leads to ever greater wealth concentration, that’s a shift worth celebrating. Yet even impact investments rarely stray from the conventional investment approach that prioritizes capital preservation and profits. As impact investing matures, it’s worth asking: Can we finance mission-driven enterprises in a way that shifts the core emphasis to regenerative environmental and social benefits?