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.

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