A general term for a number of methods for making socially responsible financial investments. Impact investments seek to generate multiple forms of value, to create positive social and/or environmental returns or impacts in addition to financial returns. Also called “social investing” and encompassing “mission-related investing” (MRI), “program-related investing” (PRI), and other emerging methods. Investments can be made by individuals, organizations, or collectives using a variety of investment vehicles. Impact investment seeks to encourage socially responsible business practices, disinvest in businesses that contribute to social or environmental harm, and provide seed or low-interest loan capital to socially-responsible business ventures. Can also apply to strategic financial investments in nonprofit entities and enterprises.
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