Impact Investing

Impact Investing

Impact Investments are investments made in social enterprises or investment funds that target social enterprises with the intention of generating positive social and/or environmental impact alongside a financial return.  The term “double bottom line” is also sometimes used to describe the same concept.  Some definitions include “measurable impact” to emphasize that social and environmental returns are often measured and reported to investors.

Depending on the strategic goals of the investor, such investments can be made in frontier, emerging or developed markets, and can target a range of financial returns from commercial (“market”) returns to concessional (“below-market”) returns. As opposed to SRI and ESG investing, which rely on exclusionary practices to screen out harmful investments, Impact Investing aims to bridge the altruistic principles of philanthropy with traditional investing.  

Greenwashing

Greenwashing is the act of giving the impression that a company’s products are good for the environment when they are not. Greenwashing is wh...

Small and Medium Enterprise (SME)

Small and mid-size enterprises (SMEs) are businesses with less than a certain amount of money, assets, or employees. Each country has its own defin...

Global Steering Group for Impact Investment (GSG)

The Global Steering Group for Impact Investment (GSG) is an independent organization that encourages impact investment and entrepreneurship to help...

Related Insights

When it comes to choosing values-based investments, it’s important that investors understand the differences between SRI, ESG and Impact Investing. Impact Investing is among the newest terms, coined by the Rockefeller Foundation in 2007. It is used to describe investments that generate a measurable, beneficial social or environmental impact alongside a financial return. However, this form of investing is often confused with Socially Responsible Investing (SRI) or ESG. To understand the differences, let’s take a step back and look at the evolution of these concepts.

LOGIN

/