Impact Investing — An Investment Approach That Is Ready for Prime Time
Gary Hunt • 11 May 2021
Impact Investing — An Investment Approach That Is Ready for Prime Time

There is a small — but rapidly growing — set of investors that want to go further and ensure that their investment portfolios have positive social and environmental impact, alongside financial returns. This group of investors is not just concerned with ESG risks that may affect the financial performance of the firm (the so-called First Materiality), but also the effects that the firms they invest in may have on wider society and the environment (the so-called Second Materiality).
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Citation: International Finance Corporation

