Making Money While Doing Good

A Fireside Chat with Paul Herman

What Is Impact Investing?

Impact investing is an approach to investing that seeks to generate financial returns while also creating positive outcomes for people, communities, and the environment. Rather than viewing purpose and profit as competing priorities, impact investors look for opportunities where long term value and positive impact reinforce each other.

Rethinking Where Value Comes From

At a recent EFBC Fireside Chat, Paul Herman shared a clear message. Doing good and doing well are not competing goals.

Drawing from his work in impact and HIP investing, Paul explored how long term financial performance is increasingly tied to how companies treat people, manage risk, and build trust. Much of today’s market value is intangible, shaped by culture, leadership, employee engagement, and reputation rather than physical assets alone.

In his presentation, Paul highlighted that nearly 90 percent of stock market value is now intangible, underscoring why factors like employee satisfaction, governance, and environmental stewardship matter more than ever.

Culture, Innovation, and Long Term Performance

The conversation also touched on workplace culture and performance. Research shared during the session showed that companies recognized as the best places to work have significantly outperformed the broader market over time, reinforcing the connection between engaged employees and strong financial results.

More diverse leadership teams also tend to generate stronger ideas and better decision making, which contributes to long term growth and resilience.

Thinking in the Long Term

Paul offered a long term perspective on climate risk, using the shifting cherry blossom season in Kyoto as an analogy. Change often happens gradually, then becomes undeniable. Businesses that account for these slow moving risks early are better prepared for what comes next.

The takeaway was simple. Impact investing is not about sacrificing returns. It is about recognizing where real value is created and making decisions that align values, performance, and long term growth.