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Rosemary Addis on this emerging new financial instrument and the thinking behind it that can transform social innovation.
Impact investing is a growing field where positive social outcomes are achieved and measured alongside financial returns. The financial return distinguishes impact investing from grant funding, while the intentional design for positive benefit distinguishes it from other traditional investments.
This renewed effort for investors to actively seek positive social outcomes is emerging globally and attracting a significant array of champions and practitioners. It’s already proving to be a powerful tool in areas as diverse as sustainable agriculture, financial inclusion, health, education, energy, reducing prisoner re-offending rates, quality care for children and the elderly, community regeneration and affordable housing.