Why Impact Investing Is an Opportunity for Everyone
By Stacey Lindsay
Of the hundreds of articles I read in 2019, one that continues to stand out is an essay about washing dishes. At first, I had no intention of reading it. I had too much to do that Sunday; and I had barely made a dent in the front section of the paper. But the piece made its way in front of me. "I think you'll like this," my partner said, handing me the dog-eared article. So I dived in.
What ensued was an unexpected enlightening. The essay, written by journalist Mike Powell, is intimate and heartening. Its core is about washing dishes, but it quickly transcends into a study of what this banal chore offers ("a welcome ritual, a ballast against the chaos of the everyday," writes Powell), and what it signifies ("dirty dishes mean people have been eating," he later states). Powell beautifully illustrates that there is more to everything—and that even the simplest of things can yield opportunity for something great.
That article has stayed with me because it unveils an all-too-often overlooked truth: There is potential wealth everywhere. What Powell details is that if you pay attention, the layers of opportunity in whatever is in front of you will unfold. These layers can be anything: a moment of Zen; a clarifying thought; revelatory information; love; peace; mindfulness. This wisdom can be applied to every facet of life.
Most recently, this wisdom is something I have imparted in my desire to make a greater impact in the world—including how I spend and invest my money. I have spent the majority of my adult life believing that impact investing—putting my money toward greater social and environmental good—is something that I had to attain to be able to do. It was something I strived to be part of. I would imagine the following: When my salary catapults to a certain level, I'll then be able to spend and invest in ways that make an impact. This limiting thought became a ritual in my mind. It punctuated my hard work—and created an invisible barrier between me and something I wanted to do.
Time, rather, taught me otherwise. From incredible mentors and beacons, as well as my own research, I have learned that impact investing is something that has the potential to be done at any stage or level of means. I didn't have to wait until I was bringing in a specific salary, or when I had made my way into a particular circle of financially savvy colleagues. The money in my possession, the capital earned by my sweat and intellect, was mine to use and invest however I liked—in any size or form. In that fact I found power and incredible motivation.
In an early 2019 article for Forbes, Michelle Giddens made a necessary call that impact investing needs to be democratized. Giddens argues that people outside the field of investing were still mindsets away from impact investing—that the notion of putting money toward good was an option only for those who are considered to be financially wealthy. The belief is that "most people don't have the luxury to invest for impact," she writes. (This is in light of the fact that impact investing is on the rise: One in every four dollars under professional management is invested in strategies that are socially or environmentally responsible.) Putting your money toward the greater good is often considered a privilege sequestered for certain groups. This, Giddens argues, isn't true. It can be "easy to forget that most of us are already investors, and in that sense, potential impact investors." By becoming discerning architects who understand where our money goes in all our choices, we can steer the wheel toward making an impact. "If you save money in a bank account or a retail investment product, whoever manages that money is already making choices about where that pool of capital should be invested," writes Giddens. In any form, our capital is going toward something. Does that something align with an impact we'd like to be part of?
The operative word in impact investing—the impact—can happen in ways that aren't characterized as traditional investing. We can make an impact by considering the choices we have in our purchasing. We can be more discerning about the things we purchase and the companies we support. We can take a moment to research the options, whether it's for a bottle of detergent or a new desk chair. Of the many options, which companies are putting people, environment, and ethics first? Which options are B Corporations? Who are the people behind the companies? What is driving them to do good? With the unparalleled privilege of choice in what we buy and invest in comes a responsibility to consider the narratives.
Furthermore, impact investing presents an inclusive opportunity to look deep within ourselves and align our money with our values. Money is currency for incredible good—and it's a way to honor and magnify our values. We can do this by choosing to work with people in the investing world who believe the same things that we do. When seeking counsel from a financial planner, I have learned that we hold the right to learn if they mirror the things that matter to us, from our political views to our environmental goals. Choosing to work with someone who respects and shepherds our beliefs is a huge element in making an impact with our dollars.
Today there are a growing number of attainable entryways to becoming involved in impact investing and support businesses and endeavors fueled by a force for good. The Beyond Capital Ambassador Program opens the gates for a starting annual donation of $1500. This accessible entry point offers education on the world of impact investing, as well as opportunities to build relationships with global professionals. And there are various online platforms that offer easy access to invest in companies with a triple bottom line approach.
How we decide to invest our money is an incredibly personal thing. And because of that, it is an act that is malleable. I believe that investing—specifically impact investing—can happen in various ways. It does not have to immediately start with creating a large socially responsible portfolio. It begins with education. By researching the global issues that need dire attention and funding, and learning the ways we can get involved within our means, we begin to become impact investors. It's there for all of us. And, as philosopher and author, Michael Vlerick, points out, it's our duty. "I believe that when we have the possibility to change the world for the better, and we all have in some way or another, it is our responsibility to do so," Vlerick writes.
Today and tomorrow present an abundance of opportunities to do good. I am inspired by those around me who are fueled by this, particularly Generation Z, which is "on track to be the most well-educated generation yet," as stated by the Pew Research Center. Research shows this generation (people who generally fall between the ages of thirteen and twenty-one) put modern humane issues of gender equality, climate change, racial divides paramount. This is incredible.
We are all students and the best we can do is to continue to be open to the wisdom around us, however it comes. The opportunity to do good and to become and impact investor is open to us all. I have learned that we simply cannot judge anything too quickly. Anything, even a moment of washing a dish, is an opportunity to stretch and grow and to change our mindset.
By leaning in and considering the opportunities every act presents, we stretch our capacity to value what we have and to discover how we can make an impact.