Impact investing is an emerging concept that every aspiring investor needs to understand in detail. Whether you’re a business owner or an investor, these books will help you confidently adopt sustainable business techniques.
As the name suggests, impact investments are the types of investments that contribute to a positive social or environmental impact.
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In the phenomenon of impact investing, motivated investors contribute their funds to for-profit organizations and companies working for a cause they believe in.
Although the concept is gaining popularity day by day, it is increasingly difficult to understand its essence.
Concerns about specific impact criteria and their measurement are questions that concern both novice and experienced investors hoping to enter the industry.
This led to a revolution in the data, statistics and speeches presented by companies and financial experts on the subject to help novices understand the concept correctly.
but you can’t possibly read all the content available, and you certainly don’t want to waste your time on meaningless research.
That’s why I’ve listed some of the best impact investing books that can help you understand the what, why, and how of impact investing.
best impact investing books: must reads for beginners and professionals
When it comes to social impact investing books or esg investing books, one thing that turns readers off is challenging financial language that makes reading boring.
That’s why most investors choose to go online to gain basic knowledge about impact investing rather than searching impact investing standard books written by pioneering researchers in the field.
let me tell you a secret; I even gave up the idea of reading professional impact investing content after the first few tries. however, what kept me going were some fantastic books that combine financial theories, strategies, and philosophies that form the concept of impact investing in an easy and engaging way.
If you want exciting yet productive reading material, I’ve curated the wealth of content available to make your journey easier. My list of the best impact investing books includes professional material for impact investors, organizations seeking impact, and companies seeking to measure their social impact.
Without further ado, let’s get started.
1. sustainable investing: the art of long-term performance
If you only know the bare minimum about impact investing, you should probably start with some historical facts and figures before venturing into current events. In this case, Sustainable Investing by Cary Krosinky and Nick Robins is one of the best impact investing books to read.
Written in 2008, the book highlights how socially responsible investing began as low-yielding assets in the market and gradually became eligible for high returns.
Today, it’s not news that impact investing opportunities are on the rise. what makes this book stand out is that it explains the strategies that impact organizations can take to outperform other assets in the market and how few sustainable investment firms have achieved that goal in that time period.
These facts and figures are highly beneficial for small businesses seeking b corporation status in the future. That’s because you can help them devise suitable business models to achieve a triple bottom line without compromising financial gains.
see related: 8 best esg investing courses to take today
2. the complete idiots guide to socially responsible investing
This book is highly recommended for those of you who are easily fooled by complex stock market trends and investment strategies. In The Complete Idiot’s Guide To Socially Responsible Investing, Ken Little explains these concepts in an accessible and engaging way.
This way, if you hope to venture into impact investing or want to focus on a social issue through your business campaign, you can learn how to design a strategy and implement it at your respective level through this book.
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Most importantly, it includes catchy anecdotes and philosophies that make reading enjoyable and productive.
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3. the sri advantage
If you’ve already done any outreach on impact investing, you probably know that there are three facets to the concept. these facets are mainly known as esg, environmental, social and governance.
While environmental impact measures became popular after the growing effects of human behavior on the planet’s deterioration came to light, concepts of socially responsible investing have been around longer.
From religious beliefs to moral constraints, socially responsible investing dominated the stock market in the 18th century. As an aspiring impact investor, socially responsible investing is something you should study individually to build a profitable investment portfolio for yourself.
peter camejo’s sri advantage effortlessly debunks the misconception about underperforming sri assets. Written by an experienced financial advisor who specializes in SRIs, the book effortlessly explains how SRIs financially outperform other asset classes.
Along with this explanation, the book outlines specific strategies and practices adopted by socially responsible organizations to mitigate risks for investors.
For investors concerned about receiving low returns from funding causes they believe in, this book provides a clear guide to investing in profitable SRIs.
4. investing for good: a healthier world and a richer life
A recent 2019 publication by mobius, hardenberg, and konieczny, invest for good, describes a modern version of impact investing. If you’re looking for a book that’s fun and entertaining to read, as well as informative with practical guidelines, this is the one for you.
The writers have not only done a great job of explaining complex concepts in easy language, but they also manage to tickle your fancy in the process. this makes it a perfect weekend read to get over the blues of a hard week at work while learning some productive investment ideas in the process.
The most explicit idea of the authors throughout the book is that socially responsible investing is the future of all investment techniques. So if he’s motivated to invest for good and earn money while contributing to a cause he believes in, this book shows him the way.
5. the triple bottom line
Even if you’ve done extensive research on impact investing, you may not be familiar with the concept of the triple bottom line. while the bottom line shows the company’s net profit after subtracting expenses from profit, the triple bottom line shows profits in terms of environmental and social contributions.
Knowing these criteria can help investors determine the impact measurement of potential investment firms and enable organizations to design profitable business models. no matter what category you fall into, the triple bottom line by andrew w. savitz is informative reading for you.
Written by a sustainable business consultant, the book begins by mapping out the potential benefits of sustainable business and shows how financial gains increase as impact increases.
If you are interested in understanding how this math works, this book is a must read for you.
6. beyond the final result: putting social responsibility at the service of your company and the world
Another book that explains the bottom line concept for beginning impact investors is Beyond the Bottom Line by Joel Makower. this book is highly beneficial for entrepreneurs working on their strategies to improve their presence in the esg sector.
Based on the idea that companies perform best when they seek to provide the best for their employees, customers and suppliers, the book evaluates several companies to prove this point. These include popular brands with impressive ESG strategies, such as Body Shop and Reebok.
Describing each business individually, the book provides practical information for businesses fighting for b-corporation or benefit corporation status.
7. The Power of Impact Investing: Making Markets Work for Profit and the Global Good
The Power of Impact Investing, written by Judith Rodin and Margot Brandenburg in 2014, is one of the first books to set the concept in a modern light. Representing impact investing as an instrument for change, the book provides a clear definition of the concept.
In addition to that, it works to outline its growth as a global movement by highlighting the institutions that initially supported and worked using the concept. Bottom line, if you want to know about impact investing as an emerging investment trend, this book is an interesting and informative resource.
The best part is that the authors describe the journey of the initial companies that adopted the concept in a story-like format that makes it easy for beginners to understand.
8. impact: reforming capitalism to drive real change
If you’re looking for a comprehensive solution to learn everything you need to know about the concept, this is one of the best books on impact investing. Written by the father of British venture capital, Sir Ronald Cohen, ‘Impact’ works to differentiate impact investing from ESG investing and establishes it as an individual investment trend.
The author highlights how impact investors strive to bring about positive change, rather than just removing the negatives. Similarly, he further describes the integral position of measurement and evaluation in companies that thrive on impact, which differentiates them from ESG investments.
In addition, the book includes examples of the global impact investing market and their respective missions and techniques. that is, the book describes the impact strategies of companies such as grameen bank, patagonia and the japan government pension investment fund.
9. real impact: the new economics of social change
Real Impact, written by Morgan Simon in 2017, is one of the best impact investing books for political activists interested in getting real insight into the topic. Written by a celebrated author and founder of a global impact asset network, the book is integrated into the Harvard Business School course.
In addition, the author gives the content her vibrant and engaging touch while establishing the relationship between esg, social justice and political change. that’s why it’s a must-read for students looking to explore multiple dimensions of the impact investing concept.
10. Let My People Sail: The Education of a Reluctant Businessman, Including 10 More Years of Unusual Businesses
Even people with the slightest idea about impact investing have heard the name patagonia as a leading company that thrives on impact for decades. If you are a fan of his socially responsible strategies, let my people go surfing is one of the best impact investing books for you.
Written by company owner Yvon Chouinard himself, the book is a memoir that takes the reader through his entire journey from a simple company producing outdoor equipment to a leading impact investing firm.
A must-read publication that combines information with narrative begins with a detailed exploration of the author’s childhood and his love of preserving the great outdoors. Highlighting his core values as a businessman, the book walks you through his triple bottom line business model that inspires businesses around the world.
Overall, it’s an illuminating read that I might recommend to a friend who doesn’t believe in the benefits of impact investing and see them change their minds.
11. lean impact: how to innovate for radically greater social good
When it comes to impact investing, companies do very well as they work through the concept until they fail to generate financial gains and lose funding. Ann Mei Chang explores this concept in detail in her book Lean Impact.
Published in 2019, the book provides practical insights into the modern dynamics of impact investing. explains how social innovation can help projects create sustainable social change and keep investors engaged.
The author, who initially worked as a master engineer at google and recently became director of innovation at usaid, has a credible background that allows her to lay out clear guidelines for organizations seeking impact investing.
Instead of adding these concepts to the business model, chang is focused on changing its culture to ensure recurring quadruple profits.
12. Donut Economics: Seven Ways to Think Like a 21st Century Economist
doughnut economics by kate raworth is a fun yet witty narrative that provides beneficial ideas for implementing impact for profit in the 21st century.
In her book, the renowned economist shares her thoughts on how society can achieve financial gains without depleting its natural resources and ruining the planet. Her suggestions and ideas are supported by practical examples and statistics, making her work one of the most creative explanations of modern impact investing.
Use the donut shape to indicate the never-ending struggle for balance and how humanity can achieve enough food, shelter, and health care along with a stable climate and fertile land.
What I love about this book is the simple English used to describe complex economic concepts, ultimately promoting a new economic mindset to combat the coming environmental and social catastrophes.
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Related publications:
- impact investing story: 8 things you need to know
- what is environmental, social and governance (esg)?
- what is an outcome quadruple ending?