A Debate On Impact Investing With Italian Prime Minister

Green Environmental Investments Will Make Your Cash Flows Green

The Importance and the Awareness of Sustainability are hugely growing in these years, more and more Investors are Shifting from an “Only-Monetary-Return” Model to an “Impact-Investing” One.

This situation possibly could lead to possible “free-riders”, who will let only the market leader invest in Sustainable Solutions.
But, the Truth is that without the collaboration of the Entire Market will be almost impossible to shift the mindset and the logic underlying Investments.

That’s Fundamental to Understand because Investment is not only related to “Balance Sheet Revenues”, but they mean “Real Projects in the Real World“.
And every project has an impact and produces externalities that regard everyone.

If I finance a Project with an ROI of +20% but the Real Price of Goods will increase of +20% because of that Project (assuming constant Demand), my real return will be 0%, not +20%.
It is limited and irrational to focus only on the direct return, especially on large scales.

It Is Extremly Convenient – In Egoistic Meaning

Also, Financial Times Recently written about Impact Investing – Evaluating it a Half Trillion of Dollars Market – because of Millennials who are more and more interested in this field.

The Companies and Individuals that will have an Impact Investing Project will have precedence on receiving capital by the Future Market Leaders (Millennials), who are Deeply Sensible to those Themes as a challenge to solve in terms of Social and Environmental Sustainability.

Also, Companies that will automatize the processes will be interested not only on how to make resources sustainable but also revenues.

In fact, in a World where there is an increase in the percentage of processes that are automated, the labor revenue sources will tend to decrease among time, affecting the Market’s Revenues, decreasing the Continuous Value and Market Share Prices.

It will become financially convenient to produce a positive impact on the social life of people, working on People’s Education and Skills, to prevent Unemployment through private Initiatives.

It Will Be A Main Political Challenge to Solve Through Incentives

Analyzing and studying this “Market” before than other will be an source of Competitive Advantage: Politician as Italian Prime Minister (at Time of Meeting) Paolo Gentiloni some time ago said me that around the World Politics will spread and generate a lot of incentives to Companies to create Impact Investing Projects and to make them financially convenient.

A Recent example of those initiatives like this is the – Green Bond – that is spreading all around the World, according to HSBC and Climate Bonds Initiative.

This is a Real Political Challenge, witch importance and relevance is just a “function” of time – in fact, Global Climate Change’s Risks are real according to General Scientific Community Consensus, and Politicians will not remain silent in front of the issues and pressures generated by dangerous changes, especially when the population will start to understand and feel the risks of this situation.

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