Ethical investing has become more mainstream in recent years, particularly with the rise of millennial investors – many of whom are concerned about how their finances impact the planet.
Here at WMM, some of our own clients have approached us to ask if there are any good books, resources or articles which could help them educate themselves further on the topic of “Social Impact Investing”. In this post, we intend to offer some suggestions.
Please note that this content is for information and inspiration purposes only, and should not be taken as financial advice. To receive regulated, personalised financial advice into your own financial affairs and goals, please consult an independent financial adviser.
#1 Impact Investing: Transforming How We Make Money While Making a Difference (2011)
If you’re interested in knowing more about the history and evolution of social impact investing, then this book by Bugg-Levine and Emerson comes generally well-recommended. The language is not too laden with jargon, allowing it to be fairly accessible to readers who perhaps are not so confident with investment terminology.
Moreover, the book is broken up quite nicely into quite manageable chunks, which helps make it enjoyable to read (as you feel that you are progressing through it). There are also some fascinating topics within the book which are very much worth looking at, including “Impact Investing and International Development” and “How Will We Save The Forest And The Trees?”.
#2 Investing with Impact: Why Finance is a Force for Good (2015)
This work by Jeremy Balkin takes a slightly different line to the one above. Rather than focusing on the history of social impact investing, it rather addresses, head-on, the common popular perception of the financial sector as a primarily negative force when it comes to social, ethical and environmental change.
Standing at around 136 pages, this book is quite quick to read and is nicely broken up into 6 short chapters – each with a compelling title such as “The Blame Game” and “Reimagining Prosperity”. If you are interested in finding out more about how money can be used positively to impact the world, then this is a good resource to consider.
#3 The Impact Investor: Lessons in Leadership and Strategy for Collaborative Capitalism (2014)
If you’re looking for something much more “meaty” and academic on the subject of social impact investing, then this book by Clark, Emerson and Thornley might be worth a look. Be aware, however, that with 291 pages of fairly technical writing, this is not for the faint of heart!
This book puts more of its attention on the strategy and organisation of companies, funds and investment managers who work in the field of social impact investing – suggesting ways to make improvements to the overall system. It is split into three main sections: “Part I: Key Practices and Drivers Underlying Impact Investing”; “Part II: Four Key Elements to Social Impact Investing”; and “Part III: Looking Ahead: Trends and Challenges”.
#4 Invest for Good: A Healthier World and a Wealthier You (2019)
If you’re looking for a book about social impact investing which contain more stories, dialogue and experiences of investors actively working in this field, then this book by Mobius, Hardenberg and Konieczny is quite an entertaining read.
The book contains many anecdotes which can, at times, be amusing whilst also revealing some compelling points about ESG investing. One interesting theme throughout is the authors’ notion that the future of all investing, they argue, lies in socially-responsible investing. So if you’re on board with that idea, this book might be for you!
#5 Building Social Business: The New Kind of Capitalism that Serves Humanity’s Most Pressing Needs (2011)
Muhammad Yunus (the author of this book) is a fascinating person in his own right. A social entrepreneur from Bangladesh, he received the Nobel Peace Prize for his work in establishing the Grameen Bank – a microfinance initiative which issues small business loans to people in Bangladesh, without demanding collateral (e.g. securing against the borrower’s house).
This work is a fascinating and inspiring vision of what the world could be like if capitalism was reformed to focus on the idea of “social business”. This vision outlines a way to build enterprises which are profitable and which produce economic growth, on the one hand, whilst meeting essential human needs on the other.
Standing at just under 200 pages and written in quite an accessible style from a first-person narrative perspective, this offers a unique and interesting read. We’d love to hear your thoughts on it if you decide to read it!
Final thoughts
ESG and social impact investing are fascinating subjects, containing much to explore from a range of different angles. It’s worth stating that we do not necessarily endorse everything contained in the books we’ve suggested to you above, but believe they can help inform and inspire you as you develop your own thinking on these fascinating subjects.
As always, here at WMM we would love to speak with you if you are interested in social impact investing, whether that’s starting a new investment portfolio or developing an existing one which you already possess. If you’d like to get in touch, then contact us via phone or via this website to arrange a free, no-commitment financial consultation with a member of our team today.
