Impact investing - Financial definition
Concise definition of the term impact investing
Impact investing describes the concept of investing for both financial return and a measurable social or environmental impact.
Comprehensive definition of the term impact investing
Impact investing involves deploying capital with the intention of generating positive, measurable social or environmental outcomes alongside financial returns. This approach aims to address pressing global challenges such as the protection of the environment, poverty, and inequality by directing funds towards companies, organizations, or projects that demonstrate a commitment to sustainable practices or solutions.
Examples include investments in renewable energy projects or affordable housing initiatives. Impact investors typically assess both the financial performance and the social or environmental impact of their investments to guide their decision-making process.