Impact Investing: Building a Better World



The following content is sponsored by BlackRock.

Typically, an investor’s main objective revolves around building wealth and then turning that wealth into an income generator. As a result, financial returns are accepted as the default performance metric.

But what if investing could also address the world’s most pressing social and environmental problems?

More Than Investing

This infographic from BlackRock introduces the concept of impact investing and explains why it can be a force for good.

impact

BlackRock Impact Investing

What Does Positive Impact Look Like?

Impact investing is a sustainable investing approach that combines the intention to generate positive returns with positive, measurable social and environmental outcomes.

To understand what these outcomes actually look like, here are some highlights from the companies that the BlackRock Impact Team invests in.

  • 102,000 GWh of renewable energy generated
  • 11 million metric tons of food waste mitigated
  • 114 million individuals empowered with access to financial services
  • 99 million people given access to clean drinking water
  • 600,000 families given access to affordable housing
  • 1.8 billion patients given access to affordable healthcare

These outcomes were generated in 2020, and help to make our world a better place.

The Three Pillars of Additionality

For impact investing to be an effective strategy, investors must be able to accurately measure the positive outcomes their capital is helping to create. A company may claim to be aligned with the UN Sustainable Development Goals (SDGs), but its actions may not be making a real world difference.

“Alignment to the SDGs is not enough to (Read more...)