Investing in enterprises aiming at creating social/environmental impact alongside profit / From Wikipedia, the free encyclopedia
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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". 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, housing, healthcare, education, microfinance, and sustainable agriculture. 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. Under Pope Francis, the Catholic Church has seen an increased interest in impact investing.
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".