Despite the uncertainty caused by the second Trump presidency, impact investing is maturing beyond idealism into a commercially-driven approach that delivers strong returns while scaling urgent solutions.
The world feels louder than ever. Politicians are acting irrationally, wars are spreading, and daily life is grinding on our nerves. It’s as if humanity is exhausted. Change crawls where we desperately need it, yet races ahead in places we’re unprepared for. Innovation is being strangled by regulations that pile on millions in compliance costs—yet still fail to tackle the real problems or create value for businesses and consumers.
At the same time, a new era of silent CEOs has taken hold in the US. Once outspoken and influential, the leaders of some of the world’s most powerful companies have grown conspicuously quiet—especially in response to President Trump’s recent withdrawal from the Paris Agreement and the UN Sustainable Development Goals. Investors, overwhelmed by the pace and unpredictability of change, are retreating into a wait-and-see stance. Meanwhile, governments are flip-flopping on major policies and investment strategies, adding to the uncertainty.
A new wave of impact investors
So who can really lead the way into a prosperous future for people and the planet? Who can step up to be the not-so-silent hive of impact change makers?
To those who look, the answer is crystal clear. Impact investing has matured and is ready to move from the realm of idealism into the mainstream. It has demonstrated the ability to generate strong returns and scale the solutions the world needs at speed. The need to build resilient and regenerative businesses that can withstand the shocks of an increasingly uncertain world – and provide a compelling vision of the future for all of us – hasn’t been lost on private investors. According to Morgan Stanley, in the US, 86% of private investors (96% of millennials) express interest in investing for return and impact. Despite some reports to the contrary, impact investing is hotter than ever.
“ESG investing is dead“
“Sustainability and ESG investing are dead” – is something we keep hearing. As a matter of fact, it probably always had to die. As in nature, this death may well be a necessary part of our transition to something new and better. Sustainability, like impact, is currently being re-defined, and for a good reason.
Impact investing 2.0
Impact investing has been around for a long time, supported by a steady and diverse stream of believers and visionaries. Now, it is starting to gather mainstream traction. The vast majority of millennials and Gen Z investors want change from today’s unaccountable and free wheeling capitalism. And they have serious firepower. According to Forbes and Coldwell Banker Gen Y and Z will collectively control $104T in financial wealth by 2030. A large majority of them stand ready to make major commitments to impact investing by allocating billions to strategies that aim to generate both financial returns and create measurable positive impact.
Impact Investing 2.0 begins here. By striking the right balance between purpose and profit, we can lay the foundation for a regenerative economy—unlocking trillion-dollar markets and delivering outsized returns that align with equally outsized positive impact.
Impact is no longer a ‘PR-stunt’ or an idealist vision of the future. It’s a tangible investment approach able to scale from idea to large-scale systems change, supported by all types of investors across the capital ladder. And for impact investing to scale, the return potential needs to align with the realities of the world we live in.
From wishful thinking to real returns and systems transformation
Businesses have always been a driving force in creating a compelling vision of the future for their investors, employees, customers and other stakeholders. Now more than ever, there is an opportunity for pioneering companies to take the lead in providing innovative, technological solutions to large scale problems and positively transform the sectors they are operating in – profitably, globally and at pace.
Impact investors play a significant role in enabling this transformation. By supporting exactly this kind of real, systemic change, they are presented with an opportunity to allocate capital to impact investment opportunities for long term gain and positive externalities. Call it impact investing, systems investing, conscious investing, regenerative investing or investing for resilience – in the end the label does not matter.
Look for trendsetters – not followers
The best companies don’t follow trends—they set them. They reshape their industries for the better. The most successful companies in the different sectors will help accelerate systems change towards a regenerative and circular economy to mitigate risks, attract the best talent and become market leaders in ways we may not even understand yet.
Just look at companies like NextEra (NEE 📈) – the world’s largest producer of wind and solar energy. Previously a predominantly fossil-fuel powered utility, NEE actively retires fossil fuel assets and has publicly commitment to net zero emissions by 2045.
Or look at Warby Parker (WRBY 📈) – Public Benefit Corporation and Certified B Corp – that has donated over 20 million glasses to people in need through their “Buy a Pair, Give a Pair” program. The concept of long-term stakeholder impact is formally included in the company’s governance. By publishing impact reports in line with GRI, SDG and SASB frameworks, Warby Parker delivers market-leading level transparency on its impact.
Another great example is Amalgamated Bank (AMAL 📈). This bank has also adopted public benefit corporation status and scores an exceptional B Impact Score of 155.3 (compared to a median of 50.9). 100% of Amalgamated Bank’s lending is mission-aligned, with ~39% directed to high-impact climate solutions and another ~18% toward workforce development and affordable housing.
Capital is part of the solution
In today’s world, change and uncertainty will remain a constant presence. Let’s embrace that change and use our capital to be part of the solution — not the problem. Worst case, we invest in a world with cleaner air, less pollution, better access to financial services and education. Best case, we accelerate the transition to a regenerative economy and set humanity up for success for centuries to come.
Frequently Asked Questions
How can impact investing drive change?
Impact investing drives change by channeling capital into businesses and projects that deliver measurable social and environmental benefits alongside financial returns. It shifts the role of investors from passive funders to active agents of progress. By aligning profit with purpose, it helps scale solutions to urgent global challenges like climate change, inequality, and access to healthcare. Ultimately, impact investing redefines success in finance—making positive change a core part of investment performance.
Can I generate alpha with impact investing?
A collaborative study by Schroders and Oxford Saïd finds that positive-impact equity portfolios—composed of companies addressing global challenges like climate, healthcare, and infrastructure—have delivered strong absolute and risk-adjusted returns, often outperforming traditional benchmarks. These portfolios tend to show lower volatility, reduced downside risk, and statistically significant alpha compared to standard indices ziggma.com. The research highlights that successful impact portfolios often include companies with high operational efficiency, active capital reinvestment, physical asset bases, and growth orientation. A case study on Schneider Electric reinforces the thesis, demonstrating that firms solving real-world problems can deliver both impact and solid financial performance
Through which kinds of asset classes can I invest for return and impact?
You can invest for both return and impact across a range of asset classes, depending on your goals and risk appetite. Public equities allow you to back mission-driven companies while maintaining liquidity, and fixed income offers options like green or social bonds that fund climate and community projects. Private equity and venture capital provide deeper impact potential by supporting early-stage solutions, though with higher risk and longer horizons. Real assets, such as sustainable infrastructure or regenerative agriculture, can deliver stable returns while addressing pressing environmental challenges.
Important Notice
This article is not investment advice.
We believe the information contained in this text to be reliable but do not warrant its accuracy or completeness. Opinions, estimates, and investment strategies and views expressed in this document constitute our judgment based on current market conditions available data and are subject to change without notice. Please consider your full financial situation prior to making an investment decision.