The Role of Misinformation in Impact Investing

Most of us were told to save when growing up. Open a bank account. Set something aside for later. But no one really explained what comes after that. What happens when saving feels like a start, but not quite enough? That’s when people start thinking about what comes next, and for some, that next step is investing.

So when you finally have a little money tucked away, the real dilemma kicks in. Because investing used to feel out of reach, reserved for people with huge capital. But that’s changed; now the doors are open, and suddenly, anyone can start.

The only problem? There are more options than ever. And with all that information comes confusion. Stocks? Real estate? Crypto? A savings account? Or something that reflects what you care about?

That’s where impact investing stands out. It’s not just about picking an investment option, it’s about choosing a strategy that aligns your financial goals with your values. One that makes you ask a great question: What kind of return do I want?

​​*We are not financial advisors and this is not financial advice.

What’s the Goal of Your Investment? (Returns vs. Intentions)

An average of 62% of Americans have money in the stock market.  But most of those holdings aren’t in individual equities, they’re in mutual funds tucked inside retirement accounts like a 401(k). For many people, investing started not with a decision, but with a default setting at work.

This doesn’t mean people don’t care about their future. It just means most were never taught how investing works, or that it was even an option. The financial world has a way of making things feel out of reach, and the flood of conflicting advice can make it seem like you need a finance degree just to get started.

But strip all that away because investing is just a tool, and every investment option could serve a different purpose.  The key is finding the one that works for you. That’s part of why the conversation around investing has started to shift. And Impact investing is leading that shift, an approach that aims to generate financial returns while addressing social and environmental challenges.

Rather, the goal is that at the conclusion of our life, each of us can look back on the path we took and say not that we contributed to the creation of our small part but that we worked together, building on our relative strengths to create a greater, more sustainable whole.
- Antony Bugg-Levine, Impact Investing: Transforming How We Make Money While Making a Difference

How Misinformation Shapes Financial Narratives

In 2022, the FTC reported that Americans lost $3.8 billion to investment scams, mostly from platforms with little to no transparency or regulation. It’s a reminder of how important it is to have information on who you're investing with and how they operate.

The World Economic Forum’s 2024–2025 Risk Report says the biggest short-term threat to global stability isn’t climate change, it’s misinformation. But when you zoom out ten years? The top four risks are all environmental: extreme weather, biodiversity loss, Earth system tipping points, and natural resource scarcity.

If we already recognize these environmental threats, why aren’t we addressing them with the urgency they deserve? The answer may lie in the very thing topping the short-term risk list, misinformation. Instead of focusing on real solutions, we are bombarded with deceptive narratives that keep us looking elsewhere, avoiding action as much as possible.

Misinformation can significantly impact public perception of climate change, and may also influence financial decisions. For example, digital assets like cryptocurrency have gained widespread attention as a potential path to building wealth. That rise has been driven by innovation, strong narratives around financial independence, and in some cases, public endorsements. But like any emerging asset class, crypto also comes with risks, such as price volatility and questions about environmental impact, that investors are still working to understand fully. 

Broadening the Conversation: Exploring Climate-Focused Financial Opportunities

While traditional investments dominate many financial conversations, impact investing is quietly emerging as one of the biggest investment opportunities of our time. But as the WEF report highlights, misinformation is keeping us distracted. Instead of focusing on investments that could drive impact and stability, diluted marketing often steer attention elsewhere. 

Recent policy shifts also underscore this challenge. The Trump administration's 2026 budget proposal includes a $15 billion rollback in carbon capture and renewable energy funding, alongside major cuts to the EPA and Department of Energy. These proposed reductions signal a deprioritization of federal support for renewable energy and climate initiatives.

Despite these federal shifts, the momentum in sustainable sectors continues to grow. Impact investing directs capital toward businesses and initiatives that seek to generate both financial returns and measurable environmental benefits. The market for sustainable investing has grown rapidly, reaching $6.5 trillion in the U.S., accounting for 12% of the US market size. Sustainable funds, green bonds, and investments in renewable energy projects have drawn increasing interest as the global economy transitions toward lower-carbon models. 

These investments align with corporate sustainability commitments and they generate financial returns. The renewable energy sector is projected to attract $10 trillion in investments by 2050, outpacing fossil fuel spending. As more investors recognize the long-term potential of sustainable industries, impact investing is becoming a significant sector in the global market, attracting capital from institutional and individual investors alike.

The Role of Community Funding in Global Solutions

Another growing area of impact investing is Community Funding, which enables individuals to invest in renewable energy projects, sustainable infrastructure, and climate-positive innovations, sometimes with contributions as low as $10. While that might not be possible for everyone, the model itself matters. It reflects a shift toward making investment more inclusive and community-driven. This model offers a way to engage with sustainability efforts while contributing to the development of clean energy and climate solutions.

Community Funding platforms create opportunities for investors at various levels, from small-scale contributions to larger funding commitments. This allows individuals to support projects that align with their values while potentially receiving financial returns. Renewable energy projects, energy efficiency retrofits, and community-based sustainability initiatives are all areas that benefit from crowdfunding models. As public interest in climate solutions grows, community funding is emerging as a tool for mobilizing capital to support meaningful environmental progress while fostering financial inclusion.

Platforms like Climatize are showing how finance can accelerate climate action. The platform’s users have helped fund over $8 million in solar, heat pumps, energy efficiency, and EV charging infrastructure across the U.S. More than $1.75 million in principal and interest has already been returned. Historically,  projects have offered an annual interest rate up to 10%, with repayments typically occurring a few times a year.

That means, If you invest $50 and a project pays you back $55 → $50 is principal, $5 is interest. As with any investment, there is always a risk of losing your money.

With thousands of investors onboarded, the momentum for climate-focused investments is only growing, and you can get started with as little as $10.

As more individuals look to align their financial choices with their environmental values, Climatize is turning that intention into action. This is not investment advice, and past performance is not a guarantee of future results.

But one thing is clear, community funding is making a difference. The question is no longer if people want to act, it’s how fast we can scale the solutions that already exist.

What Type of Investor Are You?

For many of us, the first time we seriously think about investing is when we realize we have a little more than we spend. And then that same question shows up: What do I do with this?

The answer? It depends on what kind of investor you are, or who you want to be right now.

Some people want speed. They go for options that promise high and fast returns. Other people want stability. Not because they're aiming for early retirement, but because they want to know their money is being put to work. They want clear information and impact that goes beyond their own account balance.

Investing can look different for everyone, and we recommend speaking with a financial advisor to find the best fit. But if you care about knowing exactly where your money goes, how it grows, and what it supports while it's out there, impact investing might feel like a good fit. And a platform like Climatize could be your starting point.

Are you consciously thinking about where you invest your money today? What's the biggest myth you believed about investing?