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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.  

Impact Reporting and Investing Standards (IRIS)

Also known by its acronym “IRIS”, this is a catalog of generally-accepted metrics developed by the Global Impact Investing Network (“GIIN”) used by...

Impact Washing

Also sometimes referred to as “Green Washing,” Impact washing is when the social and/or environmental benefits or “impacts” of an inves...

Socially Responsible Investing (“SRI”)

Socially Responsible Investing or “SRI” is an investment style that is often referred to as “do no harm.”  It is an investment strategy that u...

Related Insights

Impact Capital Partners today announced its decision to sign on to the United Nations-supported Principles for Responsible Investment (PRI), committing to provide, promote and improve services that support the implementation of the PRI principles.
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.