What is impact investing?
The world is facing many challenges, some of which are close to home while others are far away. We may choose to allocate some of our financial capital to ”causes” that we feel strongly about. At the same time we know we need to save for our own future. But what if we could put our capital to work, and achieve our social and financial goals at the same time?
“Impact investing” is a rather new concept whose definition is still evolving. The commonly accepted interpretation comes from the Global Impact Investing Net- work (GIIN), which defines it as follows: “Investments made into companies, organisations and funds with the intention to generate a social and environmental impact alongside a financial return, and with the ambition to provide in-depth information and an accurate indication on the true impact”.
So there are three essential elements: financial benefit, impact and measurability. At NN Investment Partners, impact investing is non-concessionary. We do not give up financial return in favour of social impact or vice-versa. We do not have to give up investment performance for impact targets. Impact targets are set alongside financial return targets.
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