Measuring the Value of Impact Investing
When you think about investments, you picture large cash returns and rapid growth for the company you invest in. There’s not much social change or improvement that goes into standard investments. Instead, they’re largely a vessel to increase wealth and perpetuate the same inequities in developing countries—countries that often produce the products those businesses sell without fair compensation or economic benefit. But impact investing is different. Impact investing allows everyone to work towards a greater good without sacrificing returns on investments.
The Value of Impact Investing
Impact investing allows everyone from individuals to large multinational corporations to earn money while contributing to the growth and development of small communities.
Benefits for Individual Investors
For individual investors, you’ll gain access to larger and more diverse investments than you might with other traditional investment funds. This hedges your returns and helps increase your income. Every investment in those impact funds helps improve developing communities. You’re able to essentially invest in water and sustainable growth measures for years to come.
Benefits for Corporations, Foundations & Institutions
For corporations, foundations, and institutional investors, the benefits are more pronounced. You’re able to take a stand without sacrificing your bottom line. It shows that you value other communities and are willing to do what you can to help those less fortunate live better lives. Since the returns on investment are similar to those offered by standard funds, impact investing just makes sense.
Investing Decisions Affect Your Image
Businesses can’t afford to be seen as selfish or money-grubbing. Customers are getting pickier about the organizations they support. They want to feel that their money is getting used for something other than lining the CEOs’ pockets.
By getting involved with impact investing, you’re setting your company, foundation, and fund apart. It shows that you’re socially responsible and care about more than just the bottom line. This helps draw customers to you time and time again. Remember, just because you’re investing in an impact fund doesn’t mean you won’t make money. It just means you’re getting selective about how you make that money.
Environmental Concerns Are Growing
These days, more people are becoming concerned with the environment and clean water. Putting your business in the forefront of those improvements is key. You can’t afford to neglect social and environmental causes if you want to see consistent growth year after year.
Customers, investors, donors, and supporters are all willing to find alternatives if you’re not actively taking a stand against inequity. When you invest in sanitation and water, you showcase your company’s values to anyone willing to do the research. And your customers will take notice.
But investing in impact funds doesn’t mean that you won’t see a return. In fact, large organizations and individuals alike see a significant improvement in overall returns compared to standard funds. Why? Because people prefer to invest in social improvement whenever possible. And there’s no sign of it slowing down.
Get More Information
At Water Equity, our strategy focuses on providing sustainable and effective water treatment and sanitation services to developing communities. Let your investments count for something and start helping the world at large with every dollar. Contact us today to learn more about our funds, our cause, and our returns.