Impact investing

The term “impact investing” was coined in 2007 and has been used quite broadly to date. The most widely cited definition derives from a 2010 report by J.P. Morgan, the Global Impact Investing Network (GIIN) and the Rockefeller Foundation which described impact investments as ‘investments intended to create positive impact beyond financial returns’. Impact investment can be distinguished from traditional investment by: 1. Investor intention: Investors seek to allocate capital (debt, equity or hybrid forms) to investments where they expect both to receive a financial return (ranging from return of principal to market-beating returns) and a defined societal impact. 2. Investee intention: Business models for investees (whether they are for-profit or non-profit enterprises, funds or other financial vehicles) are intentionally constructed to seek financial and social value.3. Impact measurement: Investors and investees are able to demonstrate how their stated intentions translate into measurable social impact.(Source: content/uploads/2014/03/Impact-Investing-in-Canada-State-of-the- Nation.pdf p. 11)