Impact investing represents a significant shift in capital deployment, where financial gain and social goals can coexist.
Defining a Movement: Intentionality, Measurability, and Dual Return
Impact investing signifies intentional use of capital to achieve measurable positive social or environmental changes alongside financial returns. This movement is marked by the dual return setting itself apart as investors seek not only profits but also solutions to social issues.
The Global Landscape: Market Size, Growth, and Key Drivers
The global market for impact investing is expanding, with estimates reaching $1.57 trillion. Main growth drivers include changing investor preferences, especially among younger individuals, and the need for private capital to address social and environmental challenges.
Clarifying the Spectrum: How Impact Investing Differs from ESG and SRI
Impact investing, ESG, and SRI are distinct approaches. The key difference lies in intention: SRI seeks to avoid harmful investments, ESG incorporates non-financial factors to mitigate risks, whereas impact investing actively aims to improve social conditions.
Impact investing is becoming a crucial component of modern capitalism, striking a balance between financial aims and social responsibilities.
