What is Impact Investing?



Invest with your conscience

Impact investing is an investment which creates both positive world change and business efficiencies at the same time. This is not the same as “negative” investment where you simply exclude holdings in things like tobacco or big oil. It is also not like a charitable gift or grant which has no expectation of return. In the early days of impact investing there was often only an expectation of return of capital. Today more and more organizations, both private and public, non-profit and for-profit, use their capital to invest for impact. The best leaders understand that they can take steps to change the world for the better and to also improve the efficiencies in their business at the same time.

Definition

Impact Investing

verb

Investment made into companies, organizations and funds with the intention to generate social and environmental impact alongside a financial return.


Source: Global Impact Investing Network GIIN

A company that invests in solar panels reduces their long-term electrical operating costs. A household that buys Method cleaning products is making a positive impact on the environment and the health of their family. Businesses around the world move profits into foundations that support modern agriculture, education, energy, water, medicine, and their communities as a whole. The bottom line is that you need to not only intend to do good, but also measure whether you are successful in doing so.

As a firm, Portola Creek is inspired by the growing impact investment movement and its potential to drive new resources and new thinking to organizations that are driving social change. We want to help find new and more sustainable solutions to old problems. We support the impact investing ecosystem by creating opportunities to educate, inspire, and activate potential investors. Learn more about Impact Investing and financial returns.

As a shareholder of a public company, you have the opportunity to vote on the direction of the business. Shareholder ballots include resolutions in regard to the environment, diversity, lobbying, and shareholder rights. Portola Creek votes every client proxy to effect positive change at the corporate level.

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