Impact Investing and Renewable Energy
Impact Investing are investments made into companies that aim to generate both a financial return and a positive social or environmental impact. In order for an investment to qualify, the positive social or environmental impact has to be conscious, defined and measured. The requirement to aim for a financial return (often risk adjusted market return) means that for the first time, investors do not have to choose between looking to make a profit and doing the right thing. Impact investing puts finance at the service of people who needs it most, by providing them with cheaper goods and services or solving environmental issues, using innovative solutions or technologies, and fulfilling investors’ objectives for financial return.This double bottom line is at the heart of Irene s mission, accelerating the transition to renewable energy whilst rewarding Irene Energy’s supporters.
Impact Investing was initially targeted at developing countries, with the bottom of the pyramid in mind — a consumer base of the poorest 3 billion people -. Impact investing expanded its scope due to the inability of governments in developed countries to tackle social inequalities and climate change. It is now tackling social and environmental issues throughout the world. At a time where individuals, through their investment choices, are looking to positively impact the world, the investment community worldwide is setting up investments team to accommodate this change. Through Irene,our goal is to empower people, enabling them to translate their feelings about climate change into actions that will make a difference. For the first time, and thanks to the blockchain technology, consumers will be guaranteed that their money is going to renewable energy producers.
More capital will flow towards impact investments in the future, benefiting the renewable energy sector. According to the GIIN’s survey published in 2017, 208 of the respondents invested a total of $114bn in impact investments. Energy made up 16% of total asset under management. Around 40% of the respondents expect that the allocation towards energy will increase. The forecasted compound annual growth rate (CAGR) in renewable energy between 2014 and 2019 is expected to be 10.3%, with a total market size expected to reach $778bn. The renewable energy sector offers enormous opportunities and Irene Energy is well positioned to be a key player in this market.
The Irene Energy Team
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