“Impact investing can be a powerful instrument of change.”
– Judith Rodin
We believe that there are 5 key pillars we should focus on to guide us as we create a better Aid Model: Impact Investing is our 4th Pillar.
In 2015 the United Nations General Assembly launched the Sustainable Development Goals. They’re also known as the Global Goals or SDGs. They’re a collection of 17 interlinked global goals designed to be a “blueprint to achieve a better and more sustainable future for all”. The aim is to realise them by 2030.
The UN estimates that USD 5-7 trillion is needed annually to achieve the goals. As such, it is critical that investors go beyond alignment to the global goals and instead, raise and direct new capital towards progress against the SDGs.
Impact investing has the potential to make a huge difference in helping to end poverty.
Impact investing is investing with the intent not only to make money for the investor, but also to create a measurable benefit to society. Impact investors are trying to make a social or environmental impact through their investments rather than just make money for themselves. Depending on a particular investor’s goals, they may seek returns that are above or below the market rate or be less concerned about returns at all.
We believe that it’s necessary for donors to adopt this Impact Investment mindset when donating.