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Impact Investing Challenges Traditional Methods for Promoting Social Good
(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)
Impact investing is a strategy to invest in companies, organizations and funds with the intention to generate a positive social or environmental impact while earning a financial return. Impact investing challenges the view that social and environmental issues should only be addressed by charitable donations, and that financial investments should focus only on returns. The Global Impact Investing Network (GIIN) estimates that over 1,340 organizations managed US$502 billion in impact investing assets worldwide in 2018 and these numbers are expected to grow. Alternative asset managers are starting funds dedicated to meeting environmental, social and governance targets as they seek to diversify product offerings, increase fees and meet growing demand from investors.