Impact investing relies on measuring the specific change that an investor’s capital has enabled. Most impact-focused investing strategies help investors focus on economic activities that address specific sustainability challenges outlined by the United Nations Sustainable Development Goals (SDGs). This is because the SDGs can help identify where private capital can make the most difference. Investors that want to make a measurable impact can use the SDGs as a guide to make decisions about where best to put their wealth to work.
Many investors would like to align their investments with their values and to use their wealth to bring about positive change. Impact investing strategies allow an investor to focus on areas where their capital can make a difference. They can also help an investor identify innovative companies that have potential to grow through addressing global sustainability challenges at scale.