Unlocking the power of markets to catalyze systemic change
Despite the recent politicized attacks on Environmental, Social, and Governance (ESG) efforts, corporate sustainability is not going anywhere. As the world grapples with complex and interlinked issues—from climate change to social inequality—the demand for markets to prioritize people, communities, and the planet is more urgent than ever. Leading this charge, impact-driven investors and purpose-driven businesses are harnessing capital to catalyze systemic change, directing capital toward innovative solutions that benefit not only shareholders but all stakeholders.
The power of markets to drive impact
Historically, markets have always been powerful agents of change, fostering innovation and shaping societal progress through investment and trade. Today, they're increasingly being harnessed to prioritize long-term societal and environmental benefits alongside financial returns. The impact investing sector has surged to over $1tn globally, driven by the belief that capital must be mobilized to address pressing global challenges, such as affordable housing, renewable energy, healthcare, and sustainable food systems.
However, despite growing recognition that ESG factors are critical to a company’s success—supported by B Lab’s research that sustainable and socially responsible companies tend to outperform their peers—current impact investments only constitute about 1% of global assets under management.
Catalyzing systemic change through markets
This stark reality sets the stage for this year’s Social Capital Markets (SOCAP24) conference, set for October 28-30 at the Yerba Buena Center for the Arts in San Francisco, California. Operating at the intersection of money and meaning, SOCAP24 will explore the theme “Going Deeper: Calayzing Systems Change,” calling for the investment community to move beyond surface-level solutions and focus on the deeper structural shifts necessary for lasting impact.
At B Lab Global, one of the biggest opportunities we see is in helping to build the investment ecosystem for purpose-driven companies, thus redefining the role of business in society through market forces. Our current financial system often prioritizes shareholder value above all else, reinforcing a narrow definition of success. However, the B Corp community provides a compelling proof of concept, demonstrating that profit and purpose are not only compatible but also mutually reinforcing, and that the shift from shareholder capitalism to stakeholder capitalism is not just possible—it’s profitable.
“One of Sonen’s guiding beliefs is that capital markets are potent tools for meaningful and durable social and environmental change. We invest in companies that are at the forefront of building a sustainable economy, which includes not only goods and services, but business practices that support sustainability itself. This includes worker welfare, environmentally sound policies, and governance that reflects inclusivity and transparency. The B Corp certification process not only helps guide our own business practices, it also helps us identify and evaluate the attributes most important in our own investing.” — Will Morgan, Head of Impact Strategy at Sonen Capital
B Corps leading the way
Sarah Schwimmer, Interim Co-Lead Executive and Head of External Affairs at B Lab Global, will attend SOCAP24 alongside nine B Corps from both the impact investing and purpose-driven business sectors to elevate the pivotal role B Corps are already playing in shaping the future of business and finance.
Venture capital firms like Better Ventures and impact investors such as Sonen Capital are at the forefront of developing innovative financing models that empower purpose-driven businesses to thrive. Companies like Cotopaxi and Cheekbone Beauty are working with values-aligned investors to ensure that their missions remain at the core of their growth strategies. Whether through their investments or products, the B Corp community is already building a stakeholder-driven economy. B Corps are proving that businesses can scale successfully without compromising their social and environmental commitments. This approach is creating a new blueprint for the future of business, where success is measured not only by financial performance but also by the lasting positive impact on people and the planet.
"True success is measured not by the profits we make, but by the positive impact we create in the world. When you invest in values, you invest in a brighter future for all. We make sure to personally investigate every partnership and relationship that we generate for Cheekbone Beauty before making the choice to work together. This extends to not only investors, but suppliers, vendors, marketing partners, and collaborative connections. Every facet of our business must have the same values as we do when it comes to people, and the planet." — Jenn Harper, Founder and CEO of Cheekbone Beauty Cosmetics INC