Interest is growing in impact investing–investing that supports environmental, social and governance (ESG) goals, while also earning a return. "Interest has spread to top-tier investors who understand the alignments between positive ESG results and financial returns," says Susan Mac Cormac, a partner at Morrison & Foerster. Key factors for entrepreneurs to consider:
- Impact investors will gauge your performance–and that of your suppliers–in areas including water and energy usage, training, and employee turnover.
- Even if your performance isn't optimal, they might invest if you are considering operational and management changes that could strengthen your ESG position.
- Investors will want to know how you track and report your ESG performance.
- Some "pure" impact investors will only invest if your primary purpose is "doing good" as opposed to merely mitigating the negative impacts.
Keywords: cleantech, Impact Investing, sustainability
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