Defined as investments made with the intention to generate social/environmental impact alongside a financial return. The term emerged in 2007.
Impact investing focuses on addressing major social and/or environmental challenges whilst generating financial returns. Impact investing can be applied as a lens across an entire portfolio. This may be in fixed income community loan funds or highly targeted environmental private equity funds.
Impact investing is often a way to express personal values/missions through investment decisions – using the power of business to solve social and environmental problems.