Harnessing Finance for Social Good: Inside Princeton Impact Capital

Author: Anherutowa Calvo ’27

The Princeton Impact Capital team for the 2023-2024 academic year is proudly presented here. Each year, group and individual photos are taken to provide members with professional headshots for use in various professional contexts, such as profiles and email signatures. This tradition highlights the diverse and dynamic nature of the team while equipping members with tools to confidently represent themselves in impactful roles within and beyond the university.

Where Environment and Economics Intersect

Environmental economics is a dynamic field that explores the intersection of economic activity and environmental sustainability. It addresses how market forces, policy interventions, and economic incentives can be effectively harnessed to protect our natural resources and promote environmental health. Central to this field are discussions around the valuation of environmental goods, the efficient management of public goods, and the strategies to mitigate negative externalities, such as pollution, that harm society and ecosystems. By informing policy and guiding responsible economic practices, environmental economics plays a pivotal role in driving sustainable development.

Given the increasing importance of sustainability in both public and private sectors, student organizations like Princeton Impact Capital (PIC) have emerged to bridge the gap between academic theory and practical application. These clubs provide a platform for students to engage in impact investing — where financial returns are balanced with social and environmental benefits. Through PIC, students can explore how investment strategies can drive positive change, aligning financial success with the broader goal of sustainability. To gain deeper insight into PIC’s vision and impact, we interviewed Alexandra Roberts, an economics major in the Class of 2025 and the current President of Princeton Impact Capital.

This photo captures Princeton Impact Capital members during a pivotal education meeting, a central element of the organization. Education drives the knowledge and skills that fuel the group’s collective impact. These meetings are the foundation for idea exchange, strategy development, and the reinforcement of a strong commitment to social impact. The image reflects the vibrant discussions and learning that are integral to the community.

For Roberts, the journey to leading Princeton Impact Capital (PIC) began with a deep-rooted passion for environmental stewardship and a strong interest in the interplay between politics and economics. Her extensive involvement in environmental work during high school fueled her desire to make a meaningful impact in these areas. PIC provided Roberts with the perfect platform to merge her academic pursuits in economics with her commitment to social and environmental causes. As President of PIC, she is driven by the opportunity to guide the organization in making strategic investment decisions that prioritize sustainability and social responsibility.

The Vision and Goals of Princeton Impact Capital

Princeton Impact Capital is more than just a student-run organization; it is a movement that empowers students to become leaders in impact investing. PIC’s mission is to educate and engage students in the process of identifying and investing in stocks that align with environmental and social values. Through rigorous research and thoughtful analysis, PIC equips its members with the skills needed to drive positive change in the financial world. The organization is led by a dedicated and collaborative team. The leadership structure includes:

  • Two Directors of Education: Tasked with educating members on how to effectively pitch stocks that align with PIC’s values.
  • Treasurer: Oversees the organization’s financial health.
  • Director of Media and Website: Manages PIC’s digital presence and communication.
  • Director of Outreach: Cultivates relationships with industry professionals and brings in guest speakers.

PIC’s impact extends far beyond the campus. While its approach to sustainability may be more nuanced than that of other organizations, its research and analysis are critical in helping members identify companies that prioritize sustainable practices. This knowledge not only prepares members for impactful careers but also positions them to influence corporate behaviors toward greater social and environmental responsibility. Since its inception, PIC has seen remarkable growth and success, with increasing membership and retention rates. The organization has hosted high-profile speaker events featuring leaders from companies such as Nike and Bridgewater, providing members with invaluable insights into the intersection of finance, sustainability, and corporate responsibility.

Getting Involved

Looking ahead, PIC is focused on expanding its educational offerings and speaker events. The organization’s group stock pitch activities are designed to deepen members’ understanding of impact investing while fostering collaboration and learning. Princeton students who are passionate about integrating sustainability into finance are encouraged to apply to PIC in the fall. Alexandra Roberts and the PIC team are eager to connect with like-minded students and explore the growing field of ESG (Environmental, Social, and Governance) investing. Through their efforts, PIC is shaping the future of finance, cultivating a new generation of leaders who are committed to making a positive impact on the world.

Citations:

Chen, J. (n.d.). Environmental economics: Definition, importance, and example. Investopedia. https://www.investopedia.com/terms/e/environmental-economics.asp#:~:text=Economics%2C%20broadly%20speaking%2C%20is%20the,meeting%20concerns%20about%20environmental%20impact