Impact investments are generally described as investments made with the intention to generate measurable environmental and social impact alongside a financial return. Faith-based investments are essentially impact investments with the added layer of aligning religious beliefs and values. This varies across religious groups depending on their missions, ministries, goals, and values. Below are some of the many definitions of responsible investing.
Impact Investing is generally described as investments made with the intention to generate measurable environmental and social impact alongside a financial return.
Faith-Based Investing aligns religious views and goals with the strategic investment of financial assets. It integrates faith, legacy, and fiduciary standards.
Socially Responsible Investing (SRI) considers both the investor’s financial needs and an investment’s impact on society through screening (negative and positive), shareholder advocacy, and community investing.
Environmental, Social, and Governance (ESG) prioritizes financial returns alongside a company’s impact on the environment, its stakeholders, and the planet.
Mission-Related Investing seeks investments based on their potential to advance progress and deliver financial returns that align with a specific mission of an organization.
Ethical Investing looks for investments based on ethical or moral principles.
To learn about impact investing and faith-based investing, read our new report, Aligning Faith and Finance, available here.