Ethical Investing
What Does Impact Investing Mean?
Impact investing seeks to generate positive social or environmental outcomes, alongside financial gains. It encompasses various asset classes and can yield diverse results. The primary objective is to utilize funds and investment capital for beneficial social impact.
Impact investing is an investment approach that not only yields financial gains, but also generates positive outcomes. This strategy proactively seeks to make a constructive impact by investing in non-profit organizations that benefit the community and clean technology enterprises that promote environmental well-being. It appeals to both individual and institutional investors, such as hedge funds, private foundations, banks, pension funds, and fund managers.
KEY TAKEAWAYS
Impact investing is a widely recognized investment strategy that aims to generate financial returns while also promoting positive social or environmental outcomes. Investors who engage in impact investing evaluate a company's dedication to corporate social responsibility and its role in contributing to the betterment of society. This approach encompasses socially responsible investing (SRI) and environmental, social, and governance (ESG) investing, although there may be varying perspectives on terminology within the investment community.
