Investors look for community and sustainability in Triple Bottom Line investing

The way investors make their decisions has changed permanently over the past few years and has undoubtably been accelerated by the pandemic. As well as profits and returns, their concerns now embrace the impacts on both People and the Planet. The three factors that now make up investor decisions, with Profit adding on to People and the Planet, mean that local firms are now firmly in the sights of investors.  

Much of what is normally considered impact or ESG investing is associated with combatting climate change and while that is a key aspect, the change to the local community that a business makes is now increasingly important.  

According to our new data, while sustainability is the key concern for investors, community is a close second. We found that 45% of investors are looking to back green or sustainable firms in 2021 and 42% will support local businesses or entrepreneurs who benefit their community. We also have seen that a large number of investors who are keen on backing sustainable and green tech companies are aged between 18-34 which is great for the future of SMEs. 

Investing has never been more emotionally charged after a year where the social, environmental and medicinal good of companies has been in sharp focus. Individuals now want to back companies that can prove they are beneficial to the local area, either through employment, redevelopment or community outreach. This comes alongside what the firm is doing on climate change and carbon emissions which is, as ever, increasingly important.  

Working with local residents on redeveloping the pub and hospitality venue Rockwater Hove has shown me how much people want, more than ever, a place to come together as a community. IW Capital’s investment in Rockwater was supported by over £1million of investment from members of the community, an indication of the strength of the sentiment shown in our data. 

To find out more about IW Capital, or for more information on investment and non-executive opportunities, please speak to a member of the IW Capital team today on 020 7015 2250, or email info@iwcapital.co.uk