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As the world becomes more connected, it also becomes more aware of how actions affect the climate. Durability is an essential value among Thousand AND General Mr consumers, who make up the majority of today's spending power across all industries. By investing in businesses committed to making a difference, you can ensure that your money will be invested in a brand that has a higher than average customer lifetime value and, therefore, a much longer period of growth. of income.
As CEO of Idoneus, I've witnessed firsthand the transformative power of embracing a contribution mindset. Today's market is evolving rapidly, so much so that values such as social responsibility and sustainability are of great importance. It is equally important to understand the dynamics of impact investing.
Today's shoppers want to know that the brands they support are making a positive impact. According to Harvard Business Review, 27% of millennial and Gen Z shoppers are more likely to support a business if they believe it cares about the planet and people. HBR continues to highlight that the demands for consistency are on the rise, ultimately driving trust, engagement and conversions.
In this article, I'll dive deeper into the principles of impact investing, discuss the many ways decision makers can contribute beyond financial investments, and also explore the values that drive both millennials and Gen Z.
Connected: Sustainability for entrepreneurs – Why it matters (and how to achieve it).
Why you need to understand impact investing
As I have learned, impact investment is one of the most powerful forces when it comes to finances. Not only does it close the gap between purpose and profit, but it also works by leveraging capital to generate measurable environmental and social impact. Sustainable business models are no longer just a fad; they represent the real future of investing. Additionally, aligning your investments with your core values will allow you to create positive change while also increasing financial returns for your stakeholders.
The values that matter most to millennials and Gen. Z
There is no doubt that both millennials and Gen Z make up the majority of our consumer market. Combined, they make up over 3 billion people on our planet and make up 50.7% of the American population. Both demographics prioritize their core values, including social responsibility, sustainability and finding ways to make a real difference in the world. It is these generations that are most likely to support your business, especially if it shares the same values and contributes to the causes they care about most.
As a result, having a deep understanding and finding ways to connect with their core values is vital for businesses and investors. We always seek to prioritize investments in ventures that have demonstrable ongoing commitment social influenceethical business practices and environmental sustainability.
Looking beyond financial investments
While making sound investments is important, the real impact goes far beyond monetary transactions. At Idoneus, we stand behind the power of returning in many ways. These include providing ongoing mentoring to young entrepreneurs, offering our expertise in specific areas and taking the time to build real and meaningful relationships with all our stakeholders. We leverage our resources, influence and expertise to drive positive change not only in our community, but around the world.
Be authentic and transparent
In today's business landscape, authenticity is a top priority. Consumers, stakeholders and financial investors are all demanding complete honesty and transparency from the corporations they support.
A Nielsen IQ report finds that 81% of consumers believe transparency is “important or extremely important.” I always prioritize transparency in my endeavors, from investment strategy to creating impactful measurement practices. I believe that making a real contribution isn't something you can fake – it's about aligning my actions with values that demonstrate my commitment to making a difference. If you're wondering how to increase customer engagement, consider telling a transparent story about the intricacies of your business and its mission.
The future of impact investing
As the investment and wealth building landscape evolves, the need for impact investing will increase. We are committed to choosing the causes that matter most and investing in ways that align with our core values. We are not only creating value for our stakeholders, but also contributing to a fairer and sustainable future in general.
Explore whether your business could implement a give-back practice or allocate a percentage of top-line revenue to a line mission—or consider setting up a philanthropic arm or creating a foundation to ensure your work leaves a legacy. positive inheritance. Consider whether the causes you support have built-in infrastructure to ensure that the capital you invest reaches its destination as intended.
Connected: Why you need to build sustainability into your business strategy
Taking the time to embrace a contribution mindset is arguably one of the best ways to be successful today. socially conscious market. Whether you're an entrepreneur, investor or CEO, truly understanding the core principles of impact investing and learning how to align your actions with your values is what will lead to long-term and meaningful results.
I am proud to lead by example, demonstrating that as impossible as it may seem, it is 100% possible to increase your ROI while making a difference in society and the environment. By working together, it is also possible to create an even more sustainable, not to mention equal, future for generations to come.