of Impact Engine fame launches a book of her key takeaways on Impact Investing. As an LP in Impact Engine, I could not be more impressed by the caliber of their work and the “double bottom line” returns they are driving. Hearing
“why” on writing the book, why Impact Investing, and why now, are equally inspiring:
Q: What attracted you to Impact Investing?
A: I was attracted to the idea of business as a tool for social change when I was in college. I studied entrepreneurship and started several small businesses, which fulfilled me in many ways, but also left me unsatisfied with my contribution to society. Entrepreneurship is about making things — products, services, or processes — better. I wondered, had anyone considered using entrepreneurship to make capitalism better? These questions led to an independent study with a history professor where I studied the role corporations played in social movements and learned that investors are an underutilized key leverage point in this process. That convinced me that the investment industry is where entrepreneurship is needed to make things better. Since graduating 20 years ago, I’ve spent my career building financial products that align profit and social good as well as managing portfolios with this goal.
Q: What role should Impact Investing have in our collective portfolios?
A: The truth is, all of our portfolios are already having an impact. Every company is having an effect on its employees, community, customers, and the planet. This happens through its design and manufacturing of its products or services, how it manages its supply change, and how they treat their workers. As an investor, you can choose advisors and fund managers that focus on companies driving impact that is aligned with our values. This can be across your entire portfolio, from money market funds to stocks, bonds, and venture capital. There is a wide spectrum of impact investments with different financial and social/environmental goals. However, it requires expertise and effort to find good impact investments that fit your needs. The Little Book of Impact Investing helps readers understand these various approaches and feel confident to make their first impact investment.
Q: When you think about defining “impact,” how has the definition evolved over for you personally/at Impact Engine?
A: The principle of investing while considering the potential impact, in addition to the financial return and risk, has not changed. Unfortunately, there is a 40+ year history of this idea being discouraged by the investment industry. As impact investing pioneers fought hard to create products that personal and institutional investors demanded, there were a variety of labels that emerged with no central authority deciding what to use, creating confusion for investors. It’s also true that certain labels were created to describe specific approaches under this broad principle. Similar to how there are many different ways to invest in real estate, from residential to commercial building or new development to rental income, there are different ways to invest with an impact goal. I wrote The Little Book of Impact Investing to provide clarity on the similarities and differences between ESG, DEI, impact investing and other labels so that investors can feel confident investing based on their priorities.
Q: What are your most iconic 3x pieces of advice in your new book (eg how would someone describe her key takeaways if distilled to TLDR)?
A: 1. You have a right to invest your capital in a way that aligns with your values, and there are many options available to do so today. 2. You do not have to sacrifice financial returns to invest with an impact goal. 3. Many large and sophisticated investors have adopted impact investing, but it is for everyone and you can start today.
Q: From where would you like us to buy your book?
A: The Little Book of Impact Investing is available across a number of online and in-person booksellers, including Amazon.
You can order Priya’s book here.
