Impact investing was first coined in 2007. As an investment strategy that focuses on corporate social responsibility, it’s considered an extension of philanthropy.
Impact investments generate positive, measurable impacts to address the most challenging problems, such as energy, poverty, climate change, sustainable agriculture, waste, healthcare, real estate, etc.
Investors will find impact investments across asset classes and sectors, including healthcare, education, agriculture, technology, energy, microfinance, housing, etc.
- Stocks - Exchange-Traded Funds (ETFs) - Mutual funds - Venture Investments - Entrepreneurship
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.
- Evaluate your financial goals, risk profile, and investment strategies.