Delivering transformational change: It pays to put your money into stocks that have a positive impact

Deep Dive into impact investing

Very rightly, responsible investing (as an over-arching term) continues to grow in importance. Society and the environment need it; clients and fund managers want it; and, increasingly, how any company conducts itself is a growing driver of shareholder value and of returns.

One of the several aspects of responsible investing is impact. As an investment approach, impact investing (a term first coined in 2007) aims to generate positive social or environmental effects - alongside financial returns. More and more fund managers have investment teams devoted precisely to pursuing this. As they do so, they find the following: An increasingly untenable focus on tangibles  If you compare US Steel's financial reports today with those of 100 years ago, you will find little change: see The End of Accounting and the Path Forward for Investors and Managers, Baruch L...