Viewpoint: Does Impact Investing Always Come At A Price?
By Francois Botha
In theory, impact investments are investments made into organizations, companies, or funds to contribute to measurable positive social or environmental change while also yielding a return. Still, many impact-curious family office investors question whether achieving a measurable positive impact goes hand-in-hand with returns or if they’ll have to sacrifice these earnings for the greater good.
The answer is complex and multi-faceted. According to impact investment researcher and advisor Rachael Browning, “It is stuck in both the old way of perceiving ‘returns’ and the hope for doing things better in future, in a world that desperately needs ambitious impact-driven capital.” Drawing a conclusion thus requires an in-depth understanding of the various facets of impact investment.
Photo courtesy of Sudipto Sarkar.