Mission related investing is gaining popularity among investors who want to align financial returns with positive impact. By investing in companies and funds that provide social or environmental benefits, investors can support causes they care about. Here are some inspiring examples of mission driven investments from foundations, companies and individuals seeking both financial and social returns.
The Rockefeller Foundation’s Program Related Investments
The Rockefeller Foundation has a long history of making program related investments (PRIs) to achieve philanthropic goals. Since 2002, the foundation has committed over $200 million across more than 50 PRIs in areas like affordable housing, health, agriculture and social justice. For example, in 2011 the foundation invested $3.5 million in Root Capital, a nonprofit lender that helps agricultural businesses in poor rural areas. This investment helped Root Capital provide loans to farmer cooperatives, enabling sustainable livelihoods for smallholder farmers. The loan was repaid in full with interest, recycling the funds for future investments.
IKEA’s Social Impact Investing
IKEA, the global furniture retailer, is using impact investing to improve livelihoods and communities in emerging markets. In 1998, IKEA created Swedfund, a risk capital firm that invests in businesses in Africa, Asia and Latin America aligned with IKEA’s values. For instance, Swedfund has invested in a mango plantation in Pakistan that employs local women, providing income and food security. Another investment is in a Legos school franchise in Mexico that makes quality education more accessible. These investments generate returns for IKEA while creating social impact.
Newman’s Own Investment in Food Entrepreneurs
Newman’s Own, the food company that donates all profits to charity, has an impact investing arm called Newman’s Own Foundation. It provides Program Related Investments (PRIs) to early-stage enterprises focused on improving food systems and nutrition security. For example, it invested $250,000 as a loan in Revolution Foods, an innovative company that provides healthy school meals. This helped Revolution Foods scale up operations across the U.S. The loan was fully repaid back to the foundation for future investments.
Individual Investor Supporting Solar Energy
Impact investing doesn’t require huge sums of money. Individual investors can also invest in funds and companies aligned with their values. For example, a California investor put $10,000 into Mosaic, an online platform offering a solar project investment fund. Her investment helped finance the installation of solar panels on affordable multi-family housing units. This investment created clean energy and savings for low income families while earning a 4.5% annual return for the investor.
Mission related investing represents a powerful way to use capital markets to drive social change. By leveraging their assets, foundations, companies and individuals are fueling innovative models that deliver both financial returns and community impact. These examples illustrate the range of opportunities and potential for investors to match financial goals with social missions.