Friday, March 31, 2023
Opinion Page: What Would a Social Justice Investment Ecosystem Look Like?
From Nonprofit Quarterly, March 22, 2023
In a report published last year for Just Futures, an investment advisory firm that seeks to encourage “values-based investing,” Anand Jahi indicates that the amount of money invested on Wall Street totals $71.4 trillion (4)—nearly three times the value of the annual gross domestic product of the United States.
By comparison, the $75 million (33) that Jahi indicates is invested in social justice is roughly one millionth as much. Scale, in short, is a long way off. But the potential for scale is there. One sign of this is the rapid growth of what is variably called “socially responsible investment” or “impact investment.” In other words, hunger for investments that generate social benefit is widespread, even if many of the investment vehicles for getting there are flawed. In his report, Jahi aims to sets forth a clear definition of what a social justice investment ecosystem could look like and challenges nonprofits and philanthropy to shift their investment strategy.
But first: what is meant by “impact investing” anyway?
. . . .