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What is impact investing?
Impact investing is an approach to investing that generates both financial returns and positive, measurable social or environmental impact. This type of investing goes beyond traditional methods that solely focus on financial gains and aims to make a positive difference in the world. Led by philanthropists, the number of impact investors is growing fast as many private investors come to grips with both the opportunity for return and the massive need for private capital to fund investments that protect the planet.
How does impact investing work?
Ziggma makes impact investing easy for you by helping you make an impact through your vote as a shareholder. Annual shareholder meetings are, well, infrequent and proxy votes often fly under the radar. We make you aware of votes on topics you care about through alerts so that you can cast your vote. Shareholder resolutions can be lengthy and complex. We provide context and explain why they matter.
Ziggma makes sure you have enough context and advance notice to make an informed decision so that you can make an impact through your vote at the companies you’re invested in.
FAQ
Is impact investing profitable?
Investment on impact balances financial returns with positive societal and environmental outcomes. While the primary goal is to make a positive impact, impact investments can be profitable. Many investors have found success in sectors like renewable energy, sustainable agriculture, and socially responsible businesses. However, returns may vary, and the focus is often on achieving a balance between financial gains and positive impact.
What are direct impact investments?
Impact investments can be made through direct investments in purpose-driven businesses, for example through specialized crowdfunding platforms. Social impact bonds, green bonds, microfinance, and ESG-focused stocks offer avenues to align financial returns with positive societal and environmental outcomes, fostering a better future.
What’s the difference between impact investing and ESG?
Impact investing aims for measurable positive social or environmental outcomes alongside financial returns. ESG investing considers a broader set of Environmental, Social, and Governance factors, focusing on responsible business practices without requiring direct, measurable impact. Both approaches align investments with sustainability, but they differ in their primary focus and strategies.
Why is proxy voting a crucial part of impact investing?
In 2023, hundreds of US companies included votes on hot-button issues, such as climate, diversity or worker rights, in their annual meetings. Yet, due to lack of awareness and context, only 11% of private shareholders voted their shares. As a shareholder, whether you own shares directly or through funds, you have the power to make your voice heard by voting your shares. You may be surprised. Boards do care what their shareholders think.