Primed For Growth: The Impact Investment Mindset Impact investing has grown tremendously over the last decade, and in large part because investors aren't just looking at unrealistic returns, and add to that the positive environmental and social outcomes that are becoming increasingly more measurable.

Impact investing has grown tremendously over the last decade, and in large part because investors aren't just looking at unrealistic returns, and add to that the positive environmental and social outcomes that are becoming increasingly more measurable.

Impact investing means putting your money behind companies that will generate positive environmental and social outcomes. The result: the financial returns for such investments would be more meaningful.

Environmental and social factors are becoming increasingly important for companies to achieve their long-term goals. On the other hand, investors are becoming more savvy about aligning their money with the things they're passionate about. Therefore, I do see a brighter future for this industry, and I expect that it will only continue to grow.

Another reason impact investing is experiencing phenomenal growth is largely due to the driving force of the millennials and Gen Zs who want their investments to do more than just make money. Not only that, this generation of consumers also buy from companies that are aligned with and support their values and philosophy.

According to a study by Coldwell Banker Global Luxury, by 2030, millennials will hold five times as much wealth as they have today, and they are expected to inherit over US$68 trillion from baby boomers over the next 30 years. These numbers indicate potential for exponential growth in the impact investing sector.

But it isn't just the young investors that who spiked the growth of impact investing. Over the last few years, the number of impact investors is rising across all sectors. These investors are also being called "personal values investors," who want to align their personal values with their investments and what they stand for.

During 2020, the enterprise I lead, Hashoo Foundation, implemented various initiatives in different parts of Pakistan with sustainability at its core. Technical, vocational, and humanitarian support through women-focused programs also increased multi-fold over the last few years. The Foundation also focused on sectors where women were primary stakeholders such as early childhood development, honeybee farming, entrepreneurship and skills development, among others.

Over the next five years Hashoo Foundation will focus on four key areas in the impact investment space. These include climate change (focus on sub-sectors of solid waste management, domestic eco-tourism, and agriculture), economic growth (focus on supporting startups, social enterprises, value chain development, and developing entrepreneurship skills in far flung areas of the country), skills development (entirely focused on early childhood development training in impoverished parts of Pakistan, this sector will also focus on equal opportunities and work with children and adults with disabilities and minority groups), and health and nutrition (focus on training in nutrition and engaging at policy level and other health related projects).

Research by a number of international investment companies reveals a very positive picture regarding impact investing. The evidence emerging shows that investments in companies that prioritize social and environmental objectives perform as well financially as traditional investments, because consumer mindsets are changing.

Philanthropy can bring itself to work with an impact investing mindset that does not necessarily have to limit itself to grants only. From community development to climate change to social causes, more and more foundations could bring about a positive change not just on a local or regional level, but have long-term global impact as well.

Related: The Time Is Now: Why Conscious Investment Is Ready To Take Off In The Middle East