How Impact Investing Is Shaping a New Future for Sports

March 4, 2024

Sports have the power to unite, inspire, and change the world.
Yet, they can do even more: become a vehicle for sustainable growth and social development.
This is where impact investing comes into play, directing capital towards initiatives capable of generating a measurable positive impact, beyond just economic return.

Impact Investing and ESG Criteria

Investment decisions are guided by ESG (Environmental, Social, Governance) criteria, allowing the assessment of a project’s effects in three broad areas:

Environmental

• Promotion of eco-sustainable and low-energy consumption infrastructures.
• Support for events that minimize environmental consequences and also adopt recycling and waste management practices.
• Environmental protection education plans for athletes and the public.

Social

• Inclusion and equal opportunities for all, combating discrimination and promoting access to sports for marginalized groups.
• Programs for the health and well-being of children and adolescents.
• Projects that use sports as a tool for education and social growth in disadvantaged communities.

Governance

• Transparency and reporting of the social and environmental footprint of operations.
• Responsible and ethical management of sports organizations.
• Stakeholder involvement in defining and evaluating projects.

Benefits

Besides, beyond community and environmental value, impact investing offers multiple advantages:

Financial Return

• In fact, various studies show that investments based on ESG criteria produce competitive, if not superior, returns compared to traditional ones.

Portfolio Diversification

• Furthermore, it allows for expanding the portfolio with an innovative and low-risk asset class.

Positive Impact

• Finally, it makes participants in a more sustainable and inclusive future through their investment activity.

The Role of Technology

Equally important, the adoption of advanced technologies opens new avenues for impact investing.

These can be used to encourage sustainable practices, improve athlete safety, and offer remote engagement opportunities for fans, thus increasing global access to sports.

The Union of Sports and Sustainability Through Impact Investing

In the sports field, impact investing represents a rapidly developing area with immense potential indeed.

Furthermore, the use of ESG criteria enables investment decisions towards sustainable and inclusive initiatives.

Not only that: it allows you to contribute to a better future for the planet through the power of sport.

If you’d like a free consultation to discover what kind of sponsorship might suit you, contact us. We’re waiting for you!