Impact investing is a rapidly growing form of investing that aligns investments with values. By investing in organizations that make a positive social impact, investors and donors ensure their money is being used to make a difference in the world. Impact investing can cover a wide range of issues including environmental sustainability, social justice, poverty alleviation, and more.
For example, some investors may think impact investing requires sacrificing financial returns to make a positive social or environmental impact, but this is not necessarily the case. Impact investments are designed to generate both financial returns and social impact, and there are a variety of investment opportunities available that can achieve this.
In response to the rapid growth of the impact investing market, Vicinelli and other experts have developed a set of guidelines for investors to follow. These guidelines include assessing the social impact of potential investments, evaluating the financial risk and return of investments, and measuring the success of impact investments over time.