Impact Investing 2017-09-23T01:19:01+00:00

Definition of  “Impact Investing”

Investing that aims to generate social and environmental benefits in addition to the goal of generating financial returns.

Impact investing is a subset of socially responsible (SRI) and values-based investing (VBI). But while socially responsible and values-based investing traditionally involve the exclusion of companies or industries deemed undesirable, impact investing actively seeks to make a positive impact by including or rewarding those companies with a superior record of Environmental, Social, and Governance (ESG) achievement.
img_area_health

Medical breakthroughs require significant time and resources.

FACTOID: Hepatitis C (HCV), once equated with a diminished quality of life and even death, is now curable in 90% of patients. The cure for HCV faced overwhelming odds. On average, it takes 10-15 years and costs more than $1.2 billion to develop one new drug. Very few drugs ever make it to the clinical trial phase, and for those that do succeed in trials, only 1 in 6 ever receive FDA approval. (Learn More)

img_area_green

Green initiatives and sustainability enhance profitability.

FACTOID: Resource efficient companies – those that use less energy and water and create less waste in generating a unit of revenue – tend to produce higher investment returns than their less resource-efficient rivals. Furthermore, resource efficient companies also display a high level of innovation, forward-thinking, and entrepreneurship – all characteristics associated with superior results. (Learn More)

img_area_social

 There is a value proposition associated with diversity.

FACTOID: Women-led private technology companies are more capital efficient, achieving a 35% higher return on investment, and when venture-backed, generate 12% higher revenues than their male counterparts. However, only 6.5% of venture-backed companies are led by women. The record for public companies is not much better: 45% of Silicon Valley 150 companies have NO female executives. (Learn More)

img_area_education

Education paves the path for future success.

FACTOID: The pay gap between college graduates and non-graduates reached a record high last year. According to Labor Department statistics by the Economic Policy Institute in Washington, Americans with four-year college degrees made 98 percent more an hour on average in 2013 than people without a degree. That represents an increase from 89 percent just five years ago. (Learn More)

For more information on EQM Capital’s Investments4Impact portfolios

Learn More
Learn More