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The financial returns from “impact investing” are on par with mainstream investments, according to a recent report. Impact investing aims to generate a social or environmental return (such as affordable housing or a reduction in greenhouse emissions) as well as a financial one. Research shows that impact investors have already funded many significant social and environmental programs in Australia. These range from investing in schools and programs for the homeless, to renewable energy.

Australian debt impact investments have returned 7.9% over a five-year period, compared to expectations of a 7% market return. This disproves the idea that there is a necessary trade-off between impact and financial returns.

However, it is still too early to determine how material the financial investment is to the impacts that are created.

Read full article from The Conversation

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