What is positive impact investing?
Positive impact investing involves using your money to make a positive social or environmental impact.
It is still an investment, with the aim to deliver a competitive financial return while also generating positive benefits for the wider community or the environment.
Typical positive investments are in new technologies, biotechnologies and new infrastructure such as schools, hospitals, electric cars and so forth.
An example of positive impact investing is the ‘circular economy’, a new term which describes an alternative to a traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extract the maximum value from them while in use, then recover and regenerate products and materials at the end of each service life.
You will probably be familiar with the boxes full of air and a tiny product inside. Bad packaging has become a thing of disdain and annoyance. It can also create mountains of rubbish that add to the growing problem of waste.
The aim is to also deliver benefits for the wider community.
DS Smith is a UK packaging company which is providing innovative solutions to reduce the volume of waste. They are Europe’s biggest recycler of fibres, taking used paper and old corrugated cardboard cases from retailers and traders and using the fibre to make corrugated board – a more sustainable material than plastics, over which there is a widespread concern.
The company reports that its customers have changed their views about packaging, demanding increasingly sustainable packaging.