Impact Investing: can you change the world?
Money Mixtape
Monday, 11 November 2024 - 6 minutes
In this episode of Money Mixtape, Mark interviews Victor Cianni from Alpian about the challenges and realities of impact investing. They delve into the initial optimism surrounding ethical and environmental investing, contrasting it with a recent surge of skepticism as people question whether traditional investment products genuinely drive change.
A key issue Victor highlights is the lack of universal standards for measuring “good” with the complex trade-offs involved, as companies often balance economic contributions with environmental or human rights issues.
They discuss the prevalent problem of "greenwashing," where companies exaggerate their eco-friendly credentials to attract investors. Victor emphasizes that for most people, buying stocks doesn’t directly fund companies, akin to buying a used car, and thus has limited direct impact. Instead, individuals can choose to avoid investing in companies that conflict with their values.
While ESG investing may not always guarantee high returns, he suggests it’s possible to balance financial goals with ethical choices, especially by looking past marketing pitches and assessing companies more deeply.
The song Victor chose today is “Waiting on the World to Change” by John Mayer.
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