Impact investing

Impact investing refers to investments "made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return".[1] At its core, impact investing is about an alignment of an investor's beliefs and values with the allocation of capital to address social and/or environmental issues.

Impact investors actively seek to place capital in businesses, nonprofits, and funds in industries such as renewable energy,[2] housing, healthcare, education, microfinance, and sustainable agriculture.[3] Institutional investors, notably North American and European development finance institutions, pension funds and endowments have played a leading role in the development of impact investing.[4] Under Pope Francis, the Catholic Church has seen an increased interest in impact investing.[5]

Impact investing occurs across asset classes; for example, private equity/venture capital, debt, and fixed income. Impact investments can be made in either emerging or developed markets, and depending on the goals of the investors, can "target a range of returns from below-market to above-market rates".[6]

  1. ^ "2017 Annual Impact Investor Survey" (PDF). The Global Impact Investing Network. Archived from the original (PDF) on 2016-09-02. Retrieved 2017-03-14.
  2. ^ "GridShare – Renewable Energy Crowdfunding". GridShare – Equity based renewable energy crowdfunding platform. Archived from the original on April 19, 2019. Retrieved March 8, 2018.
  3. ^ Rodriguez, Giovanni. "Can Silicon Valley Leaders Help Solve The Global Food Challenge?". Forbes. Archived from the original on 2018-06-23. Retrieved 2018-03-09.
  4. ^ Firzli, M. Nicolas J. (7 July 2017). "G20 Nations Shifting the Trillions: Impact Investing, Green Infrastructure and Inclusive Growth" (PDF). Revue Analyse Financière. Paris. Archived (PDF) from the original on 2 August 2017. Retrieved 7 July 2017.
  5. ^ The Catholic church dabbles with impact investing Some Worry Archived 2017-08-19 at the Wayback Machine, The Economist
  6. ^ "Lessons Learned from Microfinance for the Impact Investing Sector". Impact Investing Policy Collaborative (IIPC). 2013. Archived from the original on 17 December 2013. Retrieved 16 December 2013.

From Wikipedia, the free encyclopedia · View on Wikipedia

Developed by Nelliwinne