It is difficult to start any article without referring to the threat presented by the coronavirus sweeping across countries. The human impacts are clearly devastating for anyone affected, even if the overall impact is at present relatively small in the context of major pandemics through history. The economic and financial impacts are also proving significant.
When it comes to investing, financial returns and social considerations did not always go hand in hand. In fact, businesses went through a phase of prioritising profit maximisation at the expense of everything else, including the environment and community. However, the pendulum is slowly swinging the other way as impact investments, which support businesses that
Impact investing is a specific approach of “investing for the common good” alongside ethical investing, sustainable investing, socially responsible investing (SRI), and environmental, social and governance (ESG) investing. Although they are often grouped together in everyday conversation and media coverage, there are different methodologies associated with each of these approaches. The Global Impact Investors Network