Why do people do impact investing? What are its benefits?

Investors choose impact investing to align their portfolios with their values, aiming to contribute to societal and environmental improvements while seeking financial returns. Impact investing can be worth it for investors wishing to achieve financial return and positive impact.

Pros include:

  • Contributing to positive social or environmental change
  • Tapping into emerging markets and innovations
  • Potentially achieving competitive financial returns

Cons involve the potential for higher due diligence costs, lower immediate returns compared to traditional investments, and challenges in measuring impact using traditional frameworks.