By Staff Writer
According to Forbes, women own one-third of the world’s wealth. Women invest but their strategy may be different from men. They invest in what matters to them. So, it’s not surprising they carry that strategy further and put their money where their values are. Women relate to the vulnerability of those who are homeless, abused, hungry, without fresh water, safe food, medicine, and lack access to education. They invest in companies that use their wealth and talent to improve conditions for those in poverty.
Millennials have grown up with a far wider world view, opening their eyes to the environmental damage and inequalities suffered by minorities from the same companies that made unsuspecting investors wealthy. They want their investments to pay without sacrificing equality and clean air for their children. So, they invest in companies with those values.
Both women and millennials do their research on companies that represent their values while presenting them with the opportunity to build wealth. It’s about the money but only if their beliefs are not violated.
The United Nations has sustainable development goals aimed at ending poverty, increasing prosperity, and protecting the planet by 2030. An ambitious goal considering the cost averages between 5 and 7 trillion dollars a year. Where will the money come from? Private and public investment.
An example of how that works is demonstrated by UBS Global Investment Bank . They have established the partnerships to move forward and achieve these goals. According to James Gifford, Senior Impact Investment Strategist at UBS Wealth Management , investments are changing because there is nowhere for unethical corporations to hide in our transparent economy. The lowest income people in the world now have smartphones and are one or two clicks away from a journalist, says Gifford.
Each family has their own set of values that matter to them. When they invest according to those values, they make money and change the world while doing so. Families concerned about the effect of coal and petroleum on air quality will likely not invest in those companies. They will put their money into alternative energy sources such as wind turbines and solar products.
If a cure for cancer is their focus, they will invest in research companies dedicated to that cause. Strong believers in the right to clean water worldwide and school safety will invest their money in those leading the charge.
An example of impact investing to make money and bring about good is diamond mines. In 1998 Global Witness exposed the truth of blood diamonds and helped establish the Kimberley Process which certifies diamonds as responsibly sourced. Investors can now invest in diamonds without compromising their values.
The children of impact investors learn the same investment strategies and carry them forward. They will absolutely have a positive impact on hunger, environment, poverty, healthcare, clean water, and more. They will assume global responsibility and expect social gains along with financial gains