Impact investing – a special kind of sustainable investment

Our conclusion and outlook on impact investing

Impact investing is aimed at investors for whom social and sustainable interests are more important than returns. What is important for financial products from the impact investing sector is traceability or transparency, which distinguishes this form of investment from normal ESG-oriented types of investment. As far as return and risk go, it depends on the specific financial product you choose. In principle, the principles of impact investing do not appear to be disadvantages for an investment.

The figures from the federal initiative and the easier accessibility for private investors seem to show that impact investing – like other sustainable forms of investment (e.g. sustainability certificates) – could become a growing future market. The social interest in environmental protection is flanked by political, geostrategic measures to become less dependent on fossil fuels. Of course, you don’t have to invest all your assets in sustainable investments, but even skeptical investors could consider relatively low-risk investments such as government green bonds to diversify their portfolios.

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