The New Pioneers Case of the Month: Acumen fund – Putting focus on the Social Return on Investment
A new movement within investing and philanthropy is making its mark worldwide.
Commercial investors of capital are steering away from sectors and companies whose social or environmental risks and potential liabilities may jeopardize their financial interests – and social venture capitalists are putting their money as an investment for the greater good.
Socially Responsible Investing (SRI) has during the last decade seen an explosive growth. In 2012, the market for SRIs was $8.7 trillion in Europe and $3.8 trillion in the US, with growth rates of 33% and 22% respectively since 2009.
SRI is a concept that basically means that the investment, while having financial return as its main goal, tries to ensure that it does not cause a negative social or environmental impact. In other words, SRI is for many investors a means to minimize risk and secure their financial Return on Investment (ROI).
But while the term “socially responsible investing” sometimes narrowly refers to practices that seek to avoid harm by screening companies included in an investment portfolio, the term is also used more broadly to include more proactive practices for positive contributions to the further development of society.
This is where Impact Investing comes into the picture.
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Tagged | Acumen fund, CSR, Impact investing, Social entreprenuership, Socially Responsible INvesting, SRI, The New Pioneers