Impact Investing

What is Impact Investment?

Impact Investments are investments made by companies with positive environmental and social impact, alongside a financial return.

There are 4 Core Characteristics:



Impact investors' 3 observable characteristics:

Intent

  • Investors articulate an intent to achieve a social or environmental goal

Contribution

  • Investors’ actions can make a contribution to the goal achievement
  • Contributions can either be financial or non-financial forms

Measurement

  • Investors have a system of measurement that connectes intent and contribution to the improvement in social and environmental outcomes
  • The measurement system enables investors to assess



Advantages of Impact Investing:
  • Making positive impacts on global development challenges, such as climate changes
  • Mobilizing additional resources to cope with different challenges
  • Improving different industries’ prospects to achieve sustainable development goals (SDGs)


Case Studies:

ROOT CAPITAL & THE SAVANNAH FRUITS COMPANY

Investor: Root Capital
Investee: The Savannah Fruits Company
Location: Africa
Sector: Agriculture

SNS IMPACT INVESTING & PRO MUJER BOLIVIA

Investor: SNS Impact Investing
Investee: Pro Mujer Bolivia
Location: Latin America and the Caribbean
Sector: Microfinance and Financial Services



If you are interested in Impact Investing, you can find more information by clicking the links below:

  1. Creating Impact, The Promise of Impact Investing – published by International Finance Corporation
  2. Global Impact Investing Network (GIIN)