Impact Investing

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Definition of 'Impact Investing'

Impact investing is a type of socially responsible investing that seeks to generate a positive impact on society, alongside a financial return. It is a relatively new field, but it is growing rapidly as investors become more interested in using their money to make a difference.

There are many different ways to define impact investing, but one common definition is that it is an investment that meets the following three criteria:

* It generates a financial return for the investor.
* It has a positive impact on society.
* It is aligned with the investor's values.

Impact investing can be used to support a wide range of social and environmental causes, such as poverty alleviation, climate change mitigation, and gender equality. There are many different types of impact investments available, including:

* Microfinance loans: These loans are made to small businesses and entrepreneurs in developing countries.
* Socially responsible investing: This type of investing involves choosing investments that are aligned with the investor's values, such as environmental sustainability or human rights.
* Impact bonds: These are debt instruments that are used to finance social or environmental projects. The returns on these bonds are linked to the success of the project.

Impact investing is a growing field, and there are a number of organizations that can help investors get started. The Global Impact Investing Network (GIIN) is a nonprofit organization that promotes impact investing. The GIIN provides resources and education for investors, and it also hosts an annual conference.

Impact investing is a powerful way to use your money to make a difference in the world. If you are interested in learning more about impact investing, there are many resources available to help you get started.

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