Impact investing promotes companies and projects with social and environmental causes. It is an alternative that optimizes the investors return of the investor from companies omitted to caring for the environment and with social responsibility. But, why is it important to invest in impact investment?
This type of investments focuses on instruments and companies that are sustainable or have the three environmental, social and governance (ESG) factors. A trend that investors are increasingly adopting.
"Investments are changing abysmally, as people are looking to invest in projects that achieve a win-win situation. That is, those companies that offer a positive impact not only economically, but also environmentally and socially".Denis Yris, CEO of WORTEV CAPITAL
Durante el 2022 el mercado mundial de inversión de impacto alcanzó los 1,164 millones de dólares, de acuerdo con el GIINsight: dimensionamiento del mercado de inversión de impacto 2022 de Global Impact Investing Network.
La tendencia de los inversionistas por incluir este tipo de proyectos aumenta el interés de nuevos participantes. Tan sólo en los últimos dos años, la inversión de impacto se ha expandido a otros mercados emergentes como América Latina y Asia.
¿Qué es la inversión de impacto?
The GIIN define las inversiones de impacto como aquellas que tienen el objetivo principal de crear un impacto social y ambiental positivo y medible, al mismo tiempo que se genera un retorno financiero. La organización también, especifica que este tipo de inversiones cuentan con cuatro características principales:
- Intencionalidad. Es decir, existe el deseo intencional de contribuir a un beneficio social o ambiental medible. Los inversionistas de impacto buscan resolver problemas y aprovechar las oportunidades.
- Usar evidencia y datos de impacto en el diseño de inversiones. Este tipo de inversión necesita usar evidencia y datos para impulsar un diseño de inversión inteligente.
- Gestionar el rendimiento del impacto. Se refiere a contar con circuitos de retroalimentación y comunicar información sobre el desempeño para ayudar a otros en la cadena de inversión a gestionar el impacto.
- Contribuir al crecimiento de la industria. Los inversionistas en impacto comparten aprendizajes. De esta forma permiten que otros aprendan de su experiencia, y esto contribuye a un real desarrollo en beneficio social y ambiental.
Main reasons to promote impact investing
The investments on impact investing during the last two years have generated returns from 8% to 13%,as a reflection that it remains as an investment alternative to acquire shares of companies and specialized funds. This condition is why 6 out of 10 investors within the main objectives include projects with social and environmental impact, highlighting the GIIN.
These projects must have a balance between financial rentability and social impact. Even when there is still 30% of investors that prioritize social and environmental responsible projects over the returns.
Among the main reasons to include a impact investing on their portfolio are:
- A growth in the last five years in the market development.
- Research and practice of socially responsible projects.
- Innovative trend in the sector.
- Generate a positive impact on the environment and development communities.
- SMEsand entrepreneurship venture into markets with high potential and less competition.
For the investors consulted by the report, they will maintain their capital in projects related to this type of sector, and 54% of respondents indicated that they will increase their investments in this type of projects in the next five years.
Juan del Cerro, CEO of Disruptivo TV, the guest of WEBINAR investments that impact the world: social entrepreneurshipexplains the involvement of small businesses to give solutions to problems of environmental care and with a positive impact on communities explain the growth of this sector.
Digital reinvention as a lever for development
The incursion of information technology (IT) is on its way to transform key sectors to any economic development. In this way, social development would raise the barrier that exists between people and their opportunities.
The World Bank recognizes this innovation as a digital gap generator that increases the inequalities among societies. Thus, digital development is one of the main challenges.
The aim is to equip the capital to participate fully in a digital economy. Hence the importance of promoting investing alternatives with a social approach.
Even in the medium term, healthcare will be another that will stand out after the negative effects globally after the Covid-19 pandemic.
In this regard, Juan del Cerro points out that technology evolved as a tool to promote projects and ventures with a social and environmental impact. “It's a way to make those projects more agile and far-reaching”.
Investing for the future
The first report of the Alianza por la Inversión de Impacto en México (AIIMx) specifies that this type of investment prioritizes innovation and entrepreneurship to achieve impact at scale.
In its analysis, impact investing seeks a social or environmental benefit. So by having a performance measurement of those investments and the profitability of their investments. The latter can change since it depends on the project and market where it was invested.
- Use venture capital funds that consider projects in this niche.
- Develop payment systems schemes that promote investments with a social and environmental focus.
- Encourage the creation of funds for social purposes and care for the environment.
- Develop investment instruments in local economies to promote impact projects in the same region.
- Establish legal ways for entrepreneurs and investors to prioritize impact investments.
- Inclusion of impact investing in the national, regional and international development agenda.
En los siguientes años, la promoción de alternativas e instrumentos que incentiven proyectos con impacto social y el cuidado del medio ambiente será fundamental.
"The idea is to support entrepreneurs who aim to impact the development of their employees, the community, the environment and investors."Denis Yris
In the following years, the promotion of alternatives and instruments that promote projects with social and environmental impact would be fundamental.
WORTEV CAPITAL, a venture capital fund, with the objective of promoting sectors with potential and ventures to evolve the economy.
Finds out more about venture investments with a social and environmental vision in our WEBINAR Investments that impact the world: social entrepreneurship.