Which of the following best describes the concept of impact investing?

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The concept of impact investing is best described as investing with the intent to create positive societal impact. This approach goes beyond simply seeking financial returns and focuses on generating measurable benefits for society and the environment alongside traditional financial performance. Impact investing can include funding projects that address social issues such as poverty alleviation, sustainable agriculture, education, and healthcare, or environmental challenges like climate change and conservation efforts.

This differentiates it from other investment practices that may prioritize only financial gains or redirect funds away from social projects. By integrating both financial and social returns, impact investing supports the idea that capital can be a vehicle for positive change while still being a viable investment strategy.