Insightful impact
Demand for impact investment is on the rise, especially among Millennials and Gen Z. Being the best-educated generations yet, they are more knowledgeable about societal, economic and political issues. Moreover, through impact investing they wish to invest in a better world and see proof of the results of their investments. Measurability, however, is still one of the core challenges of impact investment. Nevertheless, the implementation of new technologies such as wirelessly connected sensors and publicly available satellite imagery pave the way for more insights in the environmental and social rate of return of impact investments. For instance, Land Life Company uses sensors, artificial intelligence and app-based monitoring to demonstrate the impact of its reforestation efforts. In addition, blockchain applications are creating transparency in impact investments. The NRGcoin for example, is a solution based on a blockchain technology that gives incentives for and insights into renewable energy production. These two examples indicate how insight in impact, in addition to financial performance, could convince Millennials and Gen Z’s to come on board with impact investments.