Nov 23, 2022

The Impact of Your Investments: The Power of Compassionate Capital

Investing in companies that have a positive impact on society is an ethical way to invest. Learn more about this concept here!


The Impact of Your Investments: The Power of Compassionate Capital

Why Should You Care About The Impact Of Your Investments?

There are several reasons why you should care about impact when investing. Take social responsibility for example: First, it’s good business practice. Companies with strong corporate citizenship tend to do better financially than those without. Second, it helps people. By investing in companies that make a difference, you help them thrive and improve lives. Third, it makes the world a better place. If we all invested in companies that made a difference, the world would be a much better place.

How Can You Invest with impact?

Impact investing is a new type of investment where investors put money into businesses that have a social mission. These investments can include renewable energy projects, sustainable agriculture, and other socially responsible ventures.

One way to invest ethically is through socially responsible investment (SRI). SRI funds focus on companies that have a positive environmental, social, and governance (ESG) profile. These funds are often referred to as “impact” or “responsible” investments because they seek to generate financial returns while also making a positive contribution to society.

However, we think that ESG reporting is insufficient. For it does not address the main thing. Namely, what a company actually does. A car manufacturer, a chemical company or a firm producing household appliances might all face similar ESG issues. Still, they are entirely different companies. At Echo, we consider the impact of everything a company does – not only the ESG risks it faces. This is why we compare companies’ impacts.

How Do You Know Which Companies Have A Positive Impact?

To determine whether a company has a positive impact, investors should consider the following questions: Does the company make a positive contribution to society? Is the company transparent with its stakeholders? Are the company’s products safe and sustainable? Is the company environmentally friendly? Is the company respectful of human rights?

There is lots of information out there to answer this question, but most of it is based on the self assessment of companies. Which is why we started Echo Impact Exchange: the world’s first decentralized platform for open-for-all impact rating. On Echo, users trade impact certificates of companies in our very own Echo Coin. The market price of companies doubles as their impact indicator. Simple: high price = high impact score and vice versa.

Curious about Echo Impact Exchange?

Echo is a trading platform for impact rating. That’s right: you can rate companies’ impact by trading their impact certificates. Joining Echo is free for the time being and the profits you make from trading will become convertible to other currencies in 2023!

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