Impact Investing refers to investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Unlike traditional donations or philanthropic engagement, capital is consciously invested here in projects, companies, or funds that offer concrete solutions to social or environmental challenges – for example, in the areas of education, healthcare, renewable energy, or financial inclusion.

💡Donations can also be impact-invested in order to keep the financial return in circulation. This can be achieved, for example, through platforms like bcause.

What is the difference compared to traditional investing?

In Impact Investments, the focus is not only on the return, but also on the impact – i.e., the effect. Investors place importance on their capital actively contributing to the solution of a problem without foregoing a repayment or return.

Example:

An investment in a microfinance fund that provides microloans to women in rural areas to promote entrepreneurial independence. Or a venture capital fund that finances start-ups in the green technology sector.

Who is Impact Investing suitable for?

For people who want to deploy capital strategically while simultaneously taking on social responsibility – e.g., high-net-worth individuals, foundations, or family offices. Increasingly, institutional investors are also considering impact criteria in their investment decisions.

Important:

Not every investment with a social label is automatically an Impact Investment. It requires clear impact criteria, transparent reporting, and a measurable contribution to societal goals – for example, in line with the UN Sustainable Development Goals (SDGs).