What is Impact Investing?

What is Impact Investing

As an increasing amount of Millenials get involved in investing, you’ve probably heard the term “Impact Investing.” The finance sector is changing in front of our eyes and this change is being driven by a newfound social consciousness in investing. It is no longer sufficient to have positive returns, people also want to see positive societal change. 

Why should it matter to me?

“Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets and target a range of returns from below market to market rate, depending upon investors’ objectives” according to Amit Bouri, the Co-founder and CEO of the Global Impact Investing Network (GIIN). The GIIN is an international network dedicated to raising the awareness of impact investing while also reducing barriers associated with impact investing. As we become more aware of the problems our planet is facing, as well as our underserved communities, it is important for us all to stand together in our goal to make a more sustainable and equitable society. Impact investing is a great way for us all to have our money work not only for us but also for others.