Impact Investing, in the broad sense used in this class, is a discipline which seeks to generate social benefits as well as financial returns. From boutique beginnings, Impact Investing has surged into the mainstream of global money management, now affecting trillions of dollars of assets. The greatest demand is for strategies and products that promote social good while having expected returns competitive with non-impact options, although many other approaches exist.
Impact Investing and the associated ESG investing paradigm also permeate the agendas of policymakers, asset owners including pension plans and sovereign wealth funds, wealthy and retail investors, corporate managers, academia, and philanthropic foundations. A distinct career specialization for finance professionals has emerged, and the diversity of its applications is spreading the new discipline’s influence throughout world markets.
