Written by Hannah Lui
On June 18th, students from Hebrew University Business School’s Impact Investing class had the opportunity to learn from three experienced practitioners in the field: Gabrielle Charnas (Weave Impact), Moran Hadad (Chaka, Floresta) and Hasan Abo-Shally (GoodDeeds.AI). Below, we summarise the core takeaways from this panel discussion. These insights also serve as a fitting conclusion to a year spent studying and practicing Impact Investing.
Our Panel
What is Impact Investing?
According to the Global Impact Investing Network (GIIN), impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Impact investing, or at least, the idea of impact investing, has risen dramatically in the past ten years. Search interest on Google has increased exponentially since the 2010s, and GIIN estimates that the impact investing market has exceeded USD 1 trillion in 2022.
The growth of impact investing presents both new opportunities and risks. On one hand, the increased awareness around the responsibility of utilising our financial resources presents great potential to steward these resources in a way that achieves positive social impact. On the other hand, there is also a chance that impact investing simply becomes the next buzzword, where the industry becomes known by nothing more than a culture of impact washing, creating more harm than good and fostering even more cynicism in society.
The Inherent Trade-Off
A point discussed by all three panelists was the inherent trade-off that exists between impact returns and financial returns. As much as it is possible to achieve both financial and impact returns, not all returns (or impact) are created equal. The areas with greatest need usually have the least purchasing power, which necessarily limits financial returns, and may require the longest investment horizon to realise any returns at all. However, money and resources are still important and sustainable development requires sustained resources.
The advice from the panellists was to (a) acknowledge this trade off, (b) acknowledge the risks of operating in more challenging environments, but at the same time, to (c) find ways to minimise these trade-offs (it was suggested that this often comes from maximising your impact).
Emerging technologies present a great opportunity
While numerous discussions about the virtues and vice of AI get discussed, Hasan Abu-Shally offered a different angle. A gap exists between the tech and non-profit worlds, which affects how efficiently each world i
s run. Generative AI has the potential to empower and improve non profits, by collecting insight and information around non-profits, and applying them to specific goals and areas of non-profits. In addition, generative AI also presents the opportunity for each individual to release their social creativity and potential for doing good. In short, if used appropriately, generative AI can significantly improve the non-profit and impact investment landscape.
Careers in Impact (Investing)
For those intrigued by a career in Impact Investing, great advice was given by our panellists. Impact Investing is a new and constantly evolving industry, which means that one may not find most job opportunities on LinkedIn or by word of mouth. However, it’s a great opportunity to pave your own way. The space is growing with plenty of room for newcomers, so the most important thing is to lead with your values, know your strengths and what you can offer, and to be intentional about the impact you want to create.
This is not a journey taken alone. Our panellists also stressed the importance of collaboration with diverse stakeholders and adopting a bottom-up approach in addressing complex social and environmental challenges a
nd achieving meaningful change. By actively involving the voices of the ultimate beneficiaries, such as marginalized communities, local stakeholders, and those directly affected by the challenges at hand, we can ensure that our efforts are informed, inclusive, and sustainable.
For more information contact Corall Azouri, Lecturer at the Hebrew University at azouri.corall@mail.huji.ac.il
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