Making Sense of the Many Kinds of Impact Investing

The article describes challenges the growing market impact investing still faces. As impact investing gains traction with mainstream investors, the field needs to develop tools that can help investment professionals categorize and understand the potentially limitless combinations and permutations of impact-investment options. The investment industry needs to help investors clearly articulate three guiding principles behind their investments: what kind of impact they want to have, how deep or broad their intended impact is, and the level of risk they are willing to accept.