Impact Investing: A Review and Research Agenda

Impact investing is redefining how capital can be utilized to address social and environmental challenges while achieving financial returns. It’s not merely a trend; it represents a shift in investment philosophy, where the ultimate goal is to create measurable positive impact alongside profit. This article delves into the evolving landscape of impact investing, the challenges it faces, and a proposed research agenda aimed at enhancing its effectiveness and transparency. What does it mean for investors, stakeholders, and the broader economy? As we explore these questions, the narrative will unfold through key insights, case studies, and data analyses that highlight the potential and pitfalls of this innovative approach. The momentum behind impact investing is growing; however, understanding its dynamics is crucial for future success. We will investigate existing frameworks, methodologies for impact measurement, and the critical role of collaboration between investors and investees. Through this comprehensive exploration, readers will gain a deeper understanding of impact investing's complexities and its transformative potential for global issues such as poverty, climate change, and inequality.