According to the World Economic Forum, impact investing is “an investment approach that intentionally seeks to create both financial return and positive social or environmental impact that is actively measured. “ Impact investors invest with the intent of tackling a specific social or environmental challenge while achieving a financial return. The term impact investing is often associated with other terms related to value-based investing such as Socially Responsible Investing and Sustainable Investing. At Boundless, we view the the values-based investing world as following:
Impact Investing Explained
- Socially Responsible Investing (SRI)- the earliest form of of values-based investing, SRI is defined by negative screening and shareholder advocacy. SRI investors deliberately seek funds that screen out investments in tobacco, weapons, animal testing, petroleum industries, etc.
- Sustainable Investing is the next generation of SRI investing. It is characterized by investing in companies that demonstrate socially-responsible Environmental, Social and Governance (ESG) practices.
- Impact investing- investments tackling a specific social or environmental challenge while achieving a financial return. The positive impact must be measurable.
Boundless takes a sector-specific approach to impact investing. We believe that rigorous impact evaluation differs from sector to sector, and that best-practices should be identified on a sector level.
Boundless is active in the following sectors. (Hover the mouse to review Boundless activity and resources.)