Social impact investment

Social impact investment

Social impact investment aims to solve social or environmental challenges while generating financial profit. Social Impact investing includes investments that range from producing a return of principal capital to offering market-rate or even market-beating financial returns. Although social impact investing could be categorized as a type of "socially responsible investing," it contrasts with negative screening, which focuses primarily on avoiding investments in "bad" or "harmful" companies – social impact investors actively seek to place capital in businesses and funds that can harness the positive power of enterprise. (Derived from the the Global Impact Investment Network, www.thegiin.org)