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IMPACT BASICS

What is impact investing? 

Impact investing is an investment strategy that integrates impact criteria into investment decisions. Impact criteria consider impacts that a business is creating towards people and the planet. Given that impact lens is the first filter before any financial return, some people get confused with charity. However, they are different in that impact “investing” is concerned with investment, therefore still requires financial returns. However, impact investors may have diverse return expectations. (Note: It does not necessarily mean sacrificing financial return.)

 

Why impact investing?

Rising inequality and never-ending financial crisis are evidence that our current financial system and growth model does not serve the needs of the real economy and society as a whole. Fortunately, there is a growing global movement to align the financial system with sustainable development – one that doesn’t sacrifice tomorrow for today.

Private capital can play an important role within this transition, as philanthropy and public investment alone cannot fill the funding gap facing sustainable development. We need private sector-led solutions to meet these challenges both globally and locally.

Who is making impact investments?

For those who are making impact investments, we call them impact investors, whom can be individual or institutional. These includes impact fund managers, family offices, high net worth individuals. SFi is a platform that gather impact investors and facilitate impact investments in Asia.