The Investor, Co-Authored by Patrick Davis
Increasingly, people and institutions seek the opportunity to express social and environmental values through their financial practices. Markets are witnessing a revolution of choice, where price and profit are complemented by less quantifiable, more behavioral factors like beliefs and values. Today, we have common examples of consumers making decisions based on non-financial factors – for instance, buying a “green” product or local/organic produce. Similarly, some businesses hand-pick suppliers for intermediate goods in order to contribute to fair wages and ensure ethical labor practices in their supply chains.
These same complex dynamics are emerging in the world of finance and investing. Investors are rejecting the notion that financial performance and social/environmental progress are mutually exclusive. This is evidenced by the growth of Social Responsible Investing(SRI), the maturation of the microfinance/clean-tech industries, and popular movements such as the “Move Your Money Project.”
A recent JP Morgan Report estimates that these shifts will result in a market opportunity between $400 billion and $1 trillion over the next decade for blended value investment opportunities in housing, water, health, education and financial services. But we have a long way to go.
To help navigate “The Investor” space in the good economy, we’ve assembled a working list of resources below to help you succeed. We don’t claim to know it all so please pay it forward and comment with your input so that we can effectively grow the good economy together.
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