Impact Investing is investment for social and/or environmental benefit and financial return.
Through this new form of business we are able to provide new solutions for social and environmental problems whilst ensuring a measure of financial gain for investors whether that be return on capital or market rate returns.
Following the global success of Impact Investing in recent years there is no doubt of its position as a growth industry in Australia. Ensuring financial returns and creating positive change for the community and the environment are no longer mutually exclusive and slowly we are seeing a shift towards the triple bottom line way of thinking. Traditional models of investment are solely concerned with stakeholders, profit and return on investment whereas Impact Investment takes these factors into account whilst adding the value of social and environmental returns on investment.
Industry research suggests that approximately 2,200 impact investments worth $4.4 billion were made in 2011. - The Rockerfeller Foundation, read the entire report here.