02/10/2020
Impact Investing
An impact investment is not charity. Like any other investment, it is made to earn profits. What makes impact investing different from conventional investing is its duality of purpose. Whereas conventional investments only seek to earn return on capital, impact investments also strive to cause a measurable benefit.
Therefore, investing with impact does not equate to paying money for buying a desired impact. In many instances, impact investments are found to be as competitive as “non-impact” ones.
The other purpose of impact investing is to cause measurable benefit. This benefit can be in the form a favourable social, economic, technological, or environmental outcome.
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