What is impact investing?

Impact investing is a general investment strategy that seeks to generate financial returns while also creating a positive social or environmental impact. Investors who follow impact investing consider a company's commitment to corporate social responsibility or the duty to positively serve society as a whole.

Should impact investors measure social impact?

And while there is more consensus on metrics for financial return on investment (ROI), an impact investor should also aim to measure the social impact. In essence, all investments make an impact on society; some positive, some negative.

Is impact investing a philanthropy?

The term impact investing was first coined in 2007, but the practice was developed years earlier. A basic goal of impact investing is to help reduce the negative effects of business activity on the social environment. That's why impact investing may sometimes be considered an extension of philanthropy .

Where can I find a list of Impact investments?

The Toniic Directory is another helpful list of impact investments that includes both private equity and companies offering bonds or other fixed-income opportunities. Accredited-level investors may want to look for private equity firms that focus on impact investing.