Home | Impact Investing: Profit Aligned with Purpose
Impact investing is a growing trend in the financial world that seeks to generate positive social and environmental impact alongside financial returns. This approach aligns profit with purpose, allowing investors to make a difference while also earning a profit.
According to a recent report by the Global Impact Investing Network (GIIN), the impact investing market is estimated to be worth over $715 billion, with a compound annual growth rate of 17% since 2015. This demonstrates the increasing interest and momentum behind impact investing as more investors seek to make a meaningful impact with their capital.
One of the key principles of impact investing is measuring the social and environmental impact of investments. This is often done through the use of metrics such as the United Nations Sustainable Development Goals (SDGs) or the Impact Reporting and Investment Standards (IRIS). By tracking and reporting on impact, investors can ensure that their investments are making a positive difference in the world.
| Year | Market Size | Growth Rate |
|---|---|---|
| 2015 | $114 billion | 16% |
| 2016 | $158 billion | 18% |
| 2017 | $228 billion | 20% |
| 2018 | $288 billion | 15% |
As the table above shows, the impact investing market has been steadily growing over the past few years, with an increasing number of investors recognizing the importance of aligning profit with purpose.
Impact investing offers a unique opportunity for investors to drive positive change in areas such as healthcare, education, renewable energy, and affordable housing. By investing in projects and companies that have a social or environmental mission, investors can help address some of the world's most pressing challenges while also earning a financial return.
In conclusion, impact investing is a powerful tool for aligning profit with purpose and creating a more sustainable and equitable world. As the market continues to grow and evolve, more investors are expected to embrace this approach and make a positive impact through their investments.