The Impact of Impact: Socially Responsible Companies Outperform S&P 500

The numbers don’t lie—doing good is good business.

According to a new story by MarketWatch, companies on the MSCI KLD 400 (a list of socially responsible companies) has returned an average annual total return of 10.46 percent. By comparison, the S&P 500 has grown at a rate of 9.93 percent.

Not surprisingly, wealth managers are picking up on trend toward Impact investing. The creation of key performance metrics promises to help promote Impact investing.

“The mandate for greater disclosure has been cropping up,” Impact investing pioneer Amy Domani tells MarketWatch. “Creating standards and metrics that could grow into global standards just as we’ve seen in other areas like accounting, that can really change the game.”