You can do well by doing good in the investment universe! It’s taken eight years for Dave Chen and Tony Arnerich to convince the world that investments that are impactful can also offer powerful long-term growth. The Portland Business Journal tells the story of how the two of them are taking sustainable investing into the mainstream in “Dave Chen’s Investing Impact,” which appeared in the November 6 issue.
“’The idea that you could actually generate market returns from doing positive things was a very foreign concept at the time,’” Chen is quoted in describing their early efforts. And words like “sustainability” and “socially responsible” have gotten in the way, being too vague and broad. Arnerich talks about focusing on what resonates with investors, namely investing in specific areas like agriculture, water, and organic products.
Impact investing is catching on, particularly with a growing population of environmentally and socially conscious millennial investors. Recently the Department of Labor made it easier for retirement plan sponsors to include socially responsible investments in their retirement plans, “even acknowledging that ESG [environmental, social, governance] factors can have a direct impact on the economic value of a plan’s investment.”
“’We all worry about population growth and the effects of industrialization on the earth’” Tony is quoted, “’Dave is deploying capital to leave the world in a better place than it is right now.’”
Read the full Portland Business Journal story here.