Impact Investing
focuses on investments with a positive purpose, aiming to address social and environmental challenges. The term originated approximately a decade ago, with early impact investors accepting lower financial returns in exchange for making a meaningful impact. Today, impact investors span a range of risk and return profiles, from those accepting concessionary returns to achieve social and environmental good, to mainstream investors seeking market returns with impact, and various positions in between. Notably, major investment firms like BlackRock and Morgan Stanley have recently established dedicated impact investing divisions.