What is Impact Investing

Impact Investing Defined

“A growing number of investors have sought to deploy capital in investments designed to generate social and/or environmental benefit as well as provide a financial return”

“Impact finance” describes a range of financial vehicles and services that use private capital to finance solutions to social and environmental challenges while generating financial return, and is expected to help drive the next wave of innovation and productivity growth in the global economy.”

“Impact investing, broadly defined as investment made with the intent to create social or environmental benefit in addition to financial return, is important to government to the extent that private capital can leverage finite government resources to bring substantially larger sums of funding to bear on social and environmental problems. If impact investments deliver social benefit effectively and efficiently, they invoke a strong case for more nuanced and explicit government intervention.”

“Impact investors want to move beyond “socially responsible investment,” which focuses primarily on avoiding investments in harmful companies, and instead seek to actively deploy capital in businesses and projects that can provide solutions at scale.”

“Impact investments are investments intended to create positive impact beyond
financial return.”

JP Morgan Report “Impact Investments: An emerging asset class”, November 2010.