WTF is Impact Investing? 🤷

Simply put, impact investing means investing in companies that do good things.

Let’s dig into this a little shall we?

What comes to mind when you think of the word "good"? 

Pizza 🍕 Hawaii 🌺 Smores 🍪 Hot Chocolate ☕️ Netflix and chill 🍆
are probably what you're thinking about right now...don't worry we're hungry too.

But the word "good" also applies to how you invest, think no carbon, no child labour, no adulteration, no pollution, no guns and weapons, right?

While these have long been held beliefs of good investments or good investing behaviour, what you're actually thinking about is ethical investments.

That means investing in businesses that are not doing anything atrociously wrong to negatively affect people and planet - in the investing world this is what we refer to as a negative screen.

Consider it a filter that removes those unwanted blemishes and zits from your beautiful insta story 💁‍♀️. 

Impact investments on the other hand kick this up notch and take it one step further. Impact investments refer to 💸 being invested in businesses which exist for the sole purpose of making a positive impact on the planet.

Not only do their business models NOT do the bad things mentioned above but their businesses are focused on solving some of the world's most difficult challenges like access to clean water and energy, employment, empowerment and equity. They are businesses that genuinely do good things 😇. 

If you want to learn more about Impact Investing we'd strongly recommend this article by our friends at Impact Investing Australia which greatly sums it all up!

Here's an example 💡

Siemens Gamesa Renewable Energy SA is one such business. They have a market cap (total value of the shares currently being traded on the stock market) of $13.3 billion. Since inception in 2002 Siemens has returned its investors 311%.

While that is an impressive financial return, here's the really impressive stuff. Siemens Gamesa have installed 107 GW of renewable energy across the globe. That is a CO2 reduction of more than 300 million tonnes per year. To put that in perspective thats ~65 million cars off the road. They're powering 98 million homes with clean energy. Now that is an impactful investment with a sweet financial return. 🍯 (87.6% return in the last 3 years alone).

When you invest with Inaam, we help you find gems like Siemens Gamesa and build your own bespoke impact investment portfolio for you, based on what is important to YOU! + we take whatever money we make and put it back into the impact community to build a better future by empowering the youth of tomorrow.

If you're still not convinced about how good companies can make good financial returns, click the button below to access the Responsible Investment Association Australasia's 2021 Benchmark report its a lit read 🔥.