Bono wants to prove that investments designed to benefit society or the environment are actually delivering on that promise.
The U2 frontman announced during Davos that he's creating a new organization with US private equity firm TPG that will help investors "effectively understand the impact of their decisions."
The firm, Y Analytics, will be based in Washington, D.C. It could help solve a problem that has dogged impact investments: measuring the good they do in addition to their financial return.
Speaking during a panel discussion at the World Economic Forum, Bono said that young people are changing business and investing.
They’re driving changes in business. They really are. They’re not loyal to brands, they’re loyal to ideas," he said. "Businesses, even great businesses, like species, they can be extinct, if they don’t adapt and evolve. There’s a new mood in the room, and I think we need to be sensitive to what that is.”