Corporate Social Responsibility is one of the most important factors to boost company reputation and build its branding. Nowadays, sustainability is one of the goals of companies all around the world from different industries. Consumers express their concern about sustainability problems, they care about the social, environment and future generations. This leads to the sustainability trend where companies have to act ethically and work for the interest of society and environment if they still want to be in the game. The sustainability trend also impacts how ventures and investors evaluate a company/ startup. Besides financial returns, they are now looking at the impact of their investment on society and the environment. This type of investment is called impact investing.
According to Tynesia Boyea-Robinson, founder of CapEQ, impact investing refers to investments intended to generate social, environmental benefit and financial returns.
In 2020, there is $30 trillion on hand of generation X and Millennials, who care about sustainability and want their money does well and does good. They are more interested in investing in a business that creates social and environmental impacts. The awareness about sustainability has been increased years. This lead to a trend that customer is more willing to pay for products that support social and environment. Companies that are giving back to society will have a chance to succeed. Moreover, Millennials demand to work in sustainability companies. The majority of them want to work in a place that is doing good things, improving society. In this way, they can also have a good impact on society. These are all reasons that drive the impact of investing. It is not only about receiving more and more returns, but ventures and investors also want to use their investment to build a world that we all want to be part of. They want to make sure that capital that flows in hand will make a good impact on the things that we care about.