Investing in the Future

Abstract

Increasing environmental harm, social inequalities and economic insecurity have rendered the youth involvement in impact investment essential to sustainable development. The chapter reviews the motivators of youth-led impact investment, a financial investment approach that incorporates financial returns with quantifiable social and environmental good. It sheds light on the impact of Environmental, Social and Governance values among Millennials and Generation Z whose investment priorities are based on ethics, accountability and long-term welfare of the society. Decentralized finance and digital micro-investment platforms have opened up capital markets to more people regardless of income or location. Gen Z is transforming the creation of wealth by creating transparent, inclusive and purposeful financial systems. Nevertheless, the challenge of insufficient financial literacy, access to capital and institutional backing continues to exist, especially in the Global South. The chapter supports the idea of inclusive financial systems to make the youth more empowered and promote intergenerational justice and sustainability.