“Until recently there were not many opportunities for socially conscious investors — either institutional or individual — to pursue financial returns and the greater good with the same investment. But that’s all changing, thanks to the emerging field of impact investing, and the impact investors who are building a new kind of marketplace in which financial and social returns are closely linked.” -Judith Rodin, President, Rockefeller Foundation

Wednesday, October 10, 2012

What is the Difference Between Impact Investing and Socially Responsible Investing?

Achieve a social impact with Impact Investing
Many people use the words "impact investing" and "socially responsible investing"  interchangeably.  However, there is a definite difference between the two.  Impact investment generally focuses on achieving a positive social or environmental change through an investment.  For example, reducing green house gases through an invest in the carbon trading market or mitigating hunger in Africa by investing in agriculture in a country to ensure local food security.

Socially Responsible Investing - or SRI as it is frequently called - is generally viewed as more of avoiding a negative then the proactive seeking of positive change that underlies impact investment theory.  The main area where one can see socially responsible investing at work is in the stock market.  A socially responsible investing approach is to screen out perceived negatives such as tobacco stocks, alcohol stocks, military/defense stocks and in some cases stocks of corporations that may cause environmental damage such as coal companies.

Feel free to contact us at info@greenworldbvi.com to learn more about our various impact investment opportunities.


2 comments:

  1. This is nice. I learned something new here. Something not mentioned in schools that is.
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