The Palgrave Encyclopedia of Private Equity (https://link.springer.com/referencework/10.1007/978-3-030-38738-9)
15 Pages Posted: 1 May 2023 Last revised: 23 Jul 2023
Date Written: April 27, 2023
Impact investing is a class of investments that are designed to meet the non-pecuniary preferences of investors (or beneficiaries) and aim to generate a positive externality actively and causally through their ownership and/or governance of the companies they invest in. Impact investing emerged as a new branch of responsible, sustainable or ESG (environmental, social, and governance) investment universe in the last few decades. In this article, we provide a definition of impact investing, review the extant literature, and discuss suggestions for future research.
Keywords: double bottom line investing; dual objective investing; prosocial investing; consequentialist investing; investing with non-pecuniary benefit
JEL Classification: G11, G21, G22, G23, G24, G28, H41, M14
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