As an impact-driven investor, you’re always looking for ways to make a positive difference in the world. But what are the best ways to invest your money to achieve that goal? Are B Corps a Better Choice for Impact-Driven Investors?
One option you may be considering is investing in a B Corporation. B Corps are businesses that have been certified by the nonprofit B Lab as meeting rigorous standards of social and environmental performance, accountability, and transparency.
There are now more than 2,000 B Corps in over 50 countries, including well-known brands like Patagonia, and Ben & Jerry’s. And there’s a growing movement of impact investors who are interested in supporting these businesses.
So what are the benefits of investing in a B Corporation? Let’s take a look.
1. You can have a positive impact on the world
When you invest in a B Corporation, you can be confident that your money is going to a business that is working to solve social and environmental problems.
2. You can make money and do good
Investing in a B Corporation is a great way to make money while also doing good. These businesses are often leaders in their industries, and they’re meeting a growing demand for products and services that have a positive impact on the world.
When you invest in a B Corporation, you’re investing in a company that you believe in. These businesses are making a positive difference in the world, and you can be proud to support them.
4. You can have a voice in how the company is run
As an investor in a B Corporation, you’ll have a say in how the company is run. You’ll be able to vote on important decisions and help shape the direction of the business.
5. You can make a difference
Investing in a B Corporation is a great way to make a difference in the world. These businesses are having a positive impact, and your investment will help them continue to do good work.
Can you invest in B Corporations?
Yes! There are several government-approved Certified B Corporations from around the world. These companies are often listed on stock exchanges and can be purchased via a broker.
If you’re interested in investing in B Corporations, we suggest doing your research and talking to a financial advisor to find the best options for you.
The Bottom Line
Investing in B Corporations is a great way to make money while also making a positive impact on the world. These businesses are leaders in their industries, and they’re making a difference in the world. If you’re looking for a way to invest your money that aligns with your values, investing in B Corporations is a great option.
Do investors like B Corps?
Investors are not only investing in B Corps, but also becoming them, thanks to the compelling B Corp narrative and supporting evidence. Private equity firms, venture capitalists, wealth managers, impact investors, private banks, and others have all joined the trend to invest into B Corps. As an example, TPG Growth, the Growth Equity and Middle Market Investment Platform of private equity giant TPG, has launched The Rise Fund, a $2 billion global fund that will invest in companies with the potential to generate both measurable social and environmental impact alongside competitive financial returns. Some organisations, like the Impact Club, deem B Corps as a better choice but generally don’t invest into anything that would harm the planet or our people.
Is there a downside to investing in B Corps?
The fact that mission-driven businesses often have lower profits than traditional businesses can be a drawback for some investors. However, the growth potential of these companies and the social and environmental impact they are having are increasingly attractive to investors.
When it comes to investing, there are many different options available. You can choose to invest in a traditional business, or you can choose to invest in a business that is making a positive impact on the world. If you’re looking for a way to align your values with your investment, investing in a B Corporation is a great option.
B Corps in Australia & Aotearoa New Zealand
There are over 410 businesses in Australia and Aotearoa New Zealand that have achieved the B Corporation certification, which include fields such as accounting and waste management. They’re part of a global movement of more than 4,900 B Corps.
In Australia, the first B Corporation was certified in 2007 and today there are over 160 businesses across a range of industries including food and beverage, technology and renewable energy.
Aotearoa New Zealand’s first B Corporation was certified in 2012 and today there are over 250 businesses across a wide range of industries including food and beverage, responsible investment and sustainable forestry.
Some of the well-known B Corporations in Australia & Aotearoa New Zealand include:
If you’re looking for a way to invest your money that aligns with your values, investing in B Corporations is a great option. These businesses are leaders in their industries and they’re making a positive impact on the world. Do your research and talk to a financial advisor to find the best options for you.