Impact investing refers to investments made with the intention to generate positive social and environmental effects alongside a financial return. This approach seeks to support projects, companies, or funds that aim to address social challenges, such as poverty alleviation, education, healthcare, and environmental sustainability, while also providing measurable financial gains for the investor.
Investors in impact investing typically evaluate their investments not only based on traditional financial metrics but also on the impact metrics that assess the social and environmental outcomes produced. This form of investing appeals to those who want to align their financial decisions with their values, promoting responsible and sustainable business practices.
Impact investing can take various forms, including equity investments in social enterprises, fixed income investments in green bonds, or venture capital funding for startups that focus on social innovation. The overall goal is to create a more inclusive economy that benefits both society and investors.
Pontegadea, the investment company of Zara’s founder, Amancio Ortega, has significantly increased its focus on sustainable energy projects in recent years. Diverging from traditional investment avenues, the company has been…