Impact Investing
Impact investing is a general investment strategy that seeks to generate financial returns while also achieving positive social or environmental goals. Investors who follow impact investing consider a company's commitment to corporate social responsibility or the duty to positively serve society as a whole. It is part of a rising trend of socially responsible practices that aims to reduce some of the negative consequences of traditional business activities.
INDUSTRIES
- Healthcare
- Education
- Energy
- Agriculture
APPROACHES
NOTES
- The term "impact investing" was first coined in 2007, but the practice was developed years earlier.
- Impact investing may sometimes be considered an extension of philanthropy.
- The type of impact that can evolve from impact investing varies based on the industry and the specific company within that industry, but some common examples include giving back to the community by helping the less fortunate or investing in sustainable energy practices to help save our planet.
- The majority of impact investing is done by institutional investors, including hedge funds, private foundations, banks, pension funds, and other fund managers.