Four Essential Steps to Make a Difference
What are the issues that inspire you? What are you passionate about? Where would you most like to make a difference?
While some investors are unconcerned about which cause they support the most, the majority are driven by a particular issue.
For example, you may be passionate about clean energy or providing healthcare access to underprivileged women. Whatever your chosen impact theme, clearly defining it allows you to begin searching for excellent investment opportunities.
What do you hope to accomplish with your impact investment strategy?
Here are a few that may come to mind:
Regardless of your specific goal or goals, write them down along with your definition of success. Identify how you plan to reach your goals and a timeline for doing so.
Countless companies and funds have noted the rise of impact investments and actively compete for your investment dollars. This competition makes it challenging to identify opportunities that meet your expectations.
Again, finding a suitable investment depends on two major factors:
However, your decision-making may also be contingent on your desired level of participation.
After shortlisting and settling on an investment opportunity that meets your needs, you must ensure your investments get the desired results, as defined by the goals for your overarching strategy.
Several ways exist to make your impact felt. First, you can use your shareholder voting rights to drive the company's direction.
Second, you can ask for an impact report. These reports are designed to hold companies and funds accountable for their actions. They also define how investment dollars are being spent and how they are creating change.
As an investor, this data will also be vital in creating reports for your stakeholders, such as your board of investors.