However, the conversation extends beyond recycling, clean air, and electric cars. People from all backgrounds work to make the world a better place.
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.
Types of Impact Investments
- 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.
- Determine where you want to make an impact. Where do you want to make an impact, and how does it align with your financial goals.