Impact investing is a general investment strategy aimed at generating financial returns as well as creating a positive social or environmental impact.
Investors who adhere to impact investing take into account the company’s commitment to corporate social responsibility or the obligation to positively serve society as a whole.
Socially responsible (SRI) and environmental, social and governance (ESG) investing are two approaches to impact investing, although there is still some disagreement in the investment community over the terminology.
According to the Global Impact Investing Network, more than 88% of impact investors reported that their investments met or exceeded their expectations.
Studies show that the average return of an impact fund was 6.4% compared to 7.4% for a non-impact fund.