Impact investing directs capital towards businesses solving environmental and social problems in real-time. The industry combines the rigorous measurement of financial performance, into environmental and social performance.
Bridging the divide between philanthropy and finance, impact investing aims to provide market returns and a positive, measurable return on environmental or social metrics.
“There is an increasing desire to hold companies responsible for their actions. By putting pressure on businesses to be more transparent, impact investment has the potential to shape how companies are run.” - Tom McGillycuddy, Co-Founder at CIRCA5000.
The three key elements of impact investing which distinguishes the industry from other types of investing are:
Intentionality: the intention of an investor to produce a positive social or environmental impact alongside the market performance.
Additionality: fulfilling a good cause beyond the provision of private capital.
Measurement: being accountable and transparent in reporting on the financial, social and environmental performance of investments.
Impact investing offers investors the ability to align their investments with companies building a better future. By offering investments into businesses that are making an impact, as well as having the prospect of making profits and returns, people are gaining more control over their investment footprint.
Does impact investing sacrifice capital for social and environmental returns?
In the annual 2020 Global Impact Investing Network survey 88% of respondents reported financial performance in line with, or better than, their expectations. And 99% reported impact performance in line with, or better than, expectations.
Even in its first decade of establishment, impact investing already saw promising growth and doesn’t look to be slowing down. In the past few years it's exploded in growth, with the industry collectively managing $750 billion in assets in 2020 - an increase of ~ 329% from 2018.
The next stage of growth for the industry lies in accessibility.
CIRCA5000 - The Investment Platform of the Future
With the effects of climate change being felt, rapid advancement in technologies and the rising movement globally for equality, the need for capital to be siphoned into these causes is paramount in building a better future.
Until recently, impact investing had only been available to institutions, experts and leaders in finance. CIRCA5000 is striving to accelerate the transition to the mass-market in Europe. App technology is helping to break down the barriers between investing and society – letting anyone invest in companies working towards a liveable future.
Our app launched in 2018 as tickr and in 2021 we re-introduced ourselves as CIRCA5000. With an ambitious and highly motivated team of passionate people, we’re bridging the divide between people’s financial choices and their environmental and social choices.