INVESTING SHOW: How impact investing can profit from the companies that will shape our future

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Do you care where you invest, or are you just worried about making money?

For many investors, the latter tends to be more of a concern than ethically targeted investing.

But what about if caring about where you invest could make you more money?

That could potentially be the case for those who back impact investing, a concept that is still niche but gathering a head of steam in the investment world.

It is the next step on from socially responsible and ethical investing and involves investing in companies and ventures with the intention to generate social and environmental impact alongside a financial return.

But what does that mean to the ordinary investor? Tim Crockford, of the recently-launched Hermes Impact Opportunities fund, joined us on the Investing Show to explain.

He outlines how the fund looks for businesses that can contribute and benefit to eight key themes, ranging from water, to energy transition, education and future mobility.

Impact investing backs companies and organisations shaping our future, which could range from water sustainability, to health and electric car infrastructure

These are the themes that are likely to define the next 20, 30 or 50 years and so impact investing is essentially an investment in the future.

And as these are major issues for the world and individual countries, it is possible for investors to benefit from the companies that governments expect to step in and move us towards elements such as electric cars and charging, improving health and wellbeing and transforming the energy system to a low carbon one.