IMPACT INVESTING

 

Definition from Wikipedia:

Impact Investing refers to investments made into companies, organizations and funds with the intention to generate measurable beneficial social or environmental impact alongside a financial return. It is a form of socially responsible investing that serves as a guide for various investment strategies.

Impact Investments can be made in both emerging and developed markets, and target a range of returns from below-market to above-market rates, depending upon the circumstances. Impact Investing tends to have roots in either social issues or environmental issues and has been contrasted with microfinance.  Impact Investors seek to place capital in businesses, nonprofits and funds that can harness the positive power of enterprise. Impact Investing occurs across asset classes; for example, private equity, venture capital, debt and fixed income

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Impact Investing – how we explain it

Around 2006/2007, the term Impact Investment emerged as an approach to building intangible assets alongside tangible, financial assets. It emerged from socially responsible investment and from investments through endowments with a mission.

Impact Investing that we promote and use for our own investment are investment projects in their early stages. Besides receiving a monetary return at market rates, there must be new jobs created at not less than market pay and benefits In addition, the project needs to be environmentally friendly and clean. This is relatively easily applicable in forestry and agri-business. The perfect Impact Investment has to have a “triple” bottom line:

  1. Monetary return at market rates or above
  2. New jobs created at market pay or above
  3. Environmentally friendly and clean

 

1 Comment on "IMPACT INVESTING"

  1. Wow that was strange. I just wrote an incredibly long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say excellent blog!

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