CHAPTER 2

What Is Impact Investing?

Impact investing is aimed directly at creating a positive environmental or social impact by identifying and solving a particular environmental or social problem. Impact investing is an advanced stage of sustainable investing that began with the socially responsible investment movement that emerged in the 1970s and which was marked by the use of negative or exclusionary screening processes designed to avoid specific assets due to consideration of specific environmental, social, and governance (ESG) criteria including moral values (e.g., tobacco or gambling), standards and norms (e.g., human rights), ethical convictions (e.g., animal testing), or legal requirements (e.g., controversial armaments such as cluster ...

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