Impact Investing.
Impact investing is a strategy that seeks to createboth financial returns and measurable social and/or environmental impact.
The term ‘Impact’ when used in investing is generally defined as meaningful and measurable net positive change that supports people and the planet. Themes are normally categorised broadly as having Environmental or Social Impact. Environmental Impact may include strategies that seek to increase ecological resilience and reduce emissions to combat climate change. Social Impact may include strategies that seek to address issues related to disadvantage, improving health and wellbeing, education or employment and enhancing or improving social and public welfare.
Social and Environmental Change
Impact investing has gained traction in recent years, as calls to use finance to accelerate social and environmental change have spawned huge demand for this type of investment. Traditionally Impact investments in Australia have had limited liquidity, meaning that investors required a very long term timeframe for investment due to the nature of the projects. Whilst Impact investing isn’t a short term proposition, more recent products to enter the market offer more flexibility and liquidity, along with diversified portfolios offering varied projects and ongoing yield.
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We provide advice on Impact investing for our clients, generally in the ‘Wholesale’ Investor category. Please contact us for further details.