Impact Investing: 5 of the Best Ways to Start

The priority shift has led investors to evaluate their portfolios. The desire to outperform the market while making a positive change is enticing and possible. Impact investing makes a difference.

Experts say that impact investing offers competitive portfolio performance. Sustainable investment funds with assets of more than $260 billion have tripled over the past decade, and the growth continues.

Impact investing was first coined in 2007. As an investment strategy that focuses on corporate social responsibility, it’s considered an extension of philanthropy. However, its desire to promote the welfare of others doesn’t negate the return on investment.

What is Impact Investing?

Some impact investments may not make an environmental impact, while others do. Some may focus on equitable work environments and diversity, while others do not. Impact investing comes down to what is the intended outcome of the investment.

What’s The Difference Between ESG Investing, Socially Responsible Investing, and Impact Investing?

Investors will find impact investments across asset classes and sectors, including healthcare, education, agriculture, technology, energy, microfinance, housing, etc.

Types of Impact Investments

ESG (Environmental-Social-Governance) scores are calculated to measure how a company performs. Impact investors may focus on the part of the score as they may be interested in a specific impact the company makes in a particular area.

How Are Impact Investments Measures?