
by Judith Rodin and Margot Brandenburg
A new wave of investors is using impact investing to address some of the greatest challenges of our timefrom climate change and water scarcity to lack of access to health care, education, and affordable housingwith the intention of also generating a financial return.
This couldn’t happen at a more critical time. While philanthropy continues to be a transformative force for good, global philanthropic funds, even when combined with the development or aid budgets of many national governments, add up to mere billions of dollars. Meanwhile, the cost of solving the world’s problems runs into the trillions.
In The Power of Impact Investing, Rockefeller Foundation president Judith Rodin and Margot Brandenburg, two of the foremost experts in the field, explain what impact investing is, how it compares to philanthropy and traditional investments, where opportunities are evolving around the world, and how to get started.
By sharing moving stories of impact investors and the exciting social enterprises benefiting from these investments, Rodin and Brandenburg offer a compelling resource for anyone interested in better understanding the power of impact investingincluding retail investors, high-net-worth individuals, and heads of family offices, foundations, banks, and pension fundswhile also offering experienced impact investors an opportunity to deepen their knowledge and benefit from the perspectives of other investors. Source: Amazon Book
Examples of case studies:
Used by companies to demonstrate how their product solved a client's problem.
Used in business schools (e.g., Harvard Business School format) or consulting (McKinsey/BCG) to analyze decision-making under uncertainty.
Used in medical journals to report rare conditions, unexpected side effects, or novel treatments.
The book demonstrates the difference between philanthropy and impact investing. We still want a return. But in what way? In this book, in a way that impacts people's lives and the environment.
Case studies really help make a point, especially when it comes to what it looks like in real life. It is possible to do.
If you ever go to New York, you can capture an aesthetic shot at Rockefeller Center. What is it? The Rockefeller Foundation is an American private foundation and philanthropic organization focused on medical research and the arts, based at 420 Fifth Avenue, New York City.
Fun fact: John D. Rockefeller actually got his wealth and success from Oil. Standard Oil in the US.
Another fun fact: their family was religious. One of the reasons the foundation was established is this drive to share with others.
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Those who are an impact seekers
""...we offer practical advice and real-world stories showing how impact investing can bring about tangible change""
"The idea of harnessing the power of the market in alignment with investor values dates back to the 19th century, when religious institutions sought to avoid investing in “sin” stocks, such as the tobacco or alcohol industries. In the 1970s the socially responsible investment (SRI) industry started expanding. As we’ll explain in more depth, SRI investors are motivated by many of the same concerns as impact investors, and SRI investments have often served as a bridge between traditional investing and impact investing. Perhaps the oldest form of impact investing itself is microfinance. For more than 30 years, the practice of making small loans to the world’s poorest people has proved a powerful tool in the battle to eradicate poverty. With its beginnings in Bangladesh and Latin America in the 1970s and ’80s, microfinance rose to global prominence in 2006 with the award of the Nobel Prize to Muhammad Yunus, the Bangladeshi banker who turned his early experiments with small loans to groups of villagers into a vast self-supporting network of millions of borrowers (mostly women)."
"Socially responsible investing is a form of capital deployment in which a financial return is expected but that incorporates social or environmental values into investment decisions."
"Impact investing is more than “doing no harm”—it is a positive investment made in an enterprise that has the potential to solve a specific problem or deliver a particular service while also turning a profit or at least becoming financially self-sustaining."