What is the definition of social impact investment?

The definition of social impact investment is accurately captured by the choice indicating that these investments are made to generate measurable social and environmental impact alongside a financial return. This aligns with the fundamental premise of social impact investing, which seeks to address social challenges while also delivering a positive financial outcome.

Social impact investments are distinct in that they intentionally aim to create benefits in areas such as healthcare, education, housing, and environmental sustainability while also seeking a financial return, which differentiates them from purely philanthropic efforts that do not expect a financial return.

This dual focus is what makes social impact investing a unique and growing field within finance and investment, appealing to investors who are motivated by both the desire to effect social change and the need to achieve financial goals.