There are two phrases that are more true today than ever before. Money talks, and actions speak louder than words. And when it comes to influencing meaningful change where you spend and invest your money can make a real difference. 

This is why so many people participate in Socially Responsible Investing (SRI) on top of their other efforts. SRI lets investors earn money while also supporting the social good. Let’s say you’re looking to invest big money, if you truly believe in environmental sustainability, you’d probably invest in companies that are striving to reduce their carbon emissions. 

Basically, SRI is putting your money where your mouth is. And as niche as this type of investing might seem to be, it’s actually becoming more common than you think.

So right now, it’s not just people deeply invested in fulfilling their social responsibility who should be interested in SRI. Any company that wants to maintain their profitability in the future should make sure that they’re within the sights of socially-responsible investors. Here’s why:

1 – SRI has grown incredible quickly.

 

The last decade alone speaks volumes on the potential of SRI to dominate the global market. Since 2012, the money in SRI has tripled. The growth was even bigger in the US, Canadian, and New Zealand/Australian markets. In just four years, they’ve dedicated as much as 63.2% of their total assets to SRI.

Any investor would see that the trend speaks for itself – it grew a lot in the past, and it might have just become an unstoppable force that will continue at its current trajectory.

 And seeing how quickly SRI became popular, it will attract the attention even of non-investors. After all, who would say no to earning money while also supporting a worthy cause?

 For investors and companies alike, this means that the ride is far from over. With the increased funding it gets because of its popularity, growth and success are practically guaranteed.

 

2 – SRI will grow even quicker soon!

 

Have you noticed how socially responsible investing only started getting serious attention in the past decade? It’s been around for a while, but no one really paid attention to it until millennials started having money.

Even if the millennials comprise only 3% of the US investments, we already made more than a few ripples. And we’re only just getting started.

 Imagine just how much of an impact the millennials would have once their careers advance and they enjoy more disposable income. With Gen Z entering the market too, socially responsible investing would grow at a quicker rate than it ever did.

 The older generations would be out of the investing scene, and the younger ones will start to take over. With how supportive of SRI the younger generations are, it will inevitably become the norm.

 An old Chinese proverb once read:

 

             “The best time to plant a tree was 20 years ago. The second best time is now.”

 

Investors who have just learned about SRI may have missed the growth from the past 10 years, but there’s still an opportunity to get better returns if you invest right now. Even just by supporting small and medium businesses that are collectively the biggest employers and the biggest drivers for innovation, you'll already be contributing to making the world a better place.

 

3 – All that money invested will impact the industry.

 The most obvious impact is the industry growth. But its impact would go beyond just numbers.

Looking back 10 years ago, have you noticed how major brands are shifting their marketing campaigns? Even Victoria’s Secret dropped their famous Victoria’s Secret Angels for the VS Collective in the name of social responsibility. The same goes for every other industry that embraced a popular value and adopted it as one of their own.

Whether it’s environmental sustainability, promotion of local businesses, focus on workers’ rights, or a push for healthier and happier kids and families, new inventors are speaking with dollars to influence change. 

Millenials and Gen Z-ers have never been afraid to voice out their opinions. And with the massive cash injection they're starting to bring in, every industry would be compelled to evolve. This means that issues and causes that we’re passionate about will take center stage.

Socially responsible investing might just become your regular investing and our generation will hold most of the control of the investment assets very soon.

So if you want to profit out of SRI’s journey to normalcy, now’s the best time to act. With SRI, you get the best of both: promoting the social good and your financial stability.