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Why Investors Like Public Benefit Corporations

November 22, 2017

As reported on

There are five trends that can create long-term value for investors who decide to invest in organizations with a social or environmental impact:

  • Sustainability Improves Performance.
    A survey of 200 academic studies found that "88% of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cash flows," and "80% of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance." - From the Stockholder to the Stakeholder
  • Public Market Investors are Focused on ESG Factors
    “Strong governance, along with effective management of environmental and human capital factors, increases the likelihood that companies will perform over the long-term and manage risk effectively.” - CalPERS 2013 Investment Beliefs
  • Entrepreneurs Want to Lock in Mission
    “Becoming a Benefit Corporation helps codify and support our mission. In AltSchool's case, delivering a broad social impact goes hand-in-hand with creating a large and thriving business.” – Max Ventilla, Founder of Altschool
  • Talent Demands Purposeful Ecosystems
    "Millennials will grow to 75% of the workforce by 2025, 77% say their “company’s purpose was part of the reason they chose to work there.” -Deloitte Millennial Survey
  • Non-Financial Information is Now Pivotal
    "64% of investors say businesses do not adequately disclose non-financial risks and nearly half of investors would rule out investment based on certain non-financial disclosures” - Ernst and Young, Global Survey of Institutional Investors 2015

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