What Impact Investing Is

Impact investing is an approach to deploying capital with the intention of generating both financial return and measurable social or environmental impact. In this lesson, Professor Christina Ross introduces the core definition, how impact investing differs from related approaches such as ESG and philanthropy, and why measurement and intentionality matter.

You will learn the key features that make an investment “impact,” common asset classes and structures used in the market, and the practical trade-offs investors consider when balancing return, risk, and impact. This foundation prepares you for later lessons on design, diligence, and portfolio management.