Year: 2025
Type: article
Abstract: Objectives: To explore the principles and opportunities of social impact investing as a financial approach that aims to achieve measurable social, environmental, and financial returns. To examine the challenges in social impact investing, such as impact measurement, risk assessment, and regulatory constraints. Methods: Analyzing how social impact investing integrates ethical, social, and governance (ESG) factors into investment decisions. Discussing the sectors impacted by social impact investing, including renewable energy, healthcare, education, and microfinance. Reviewing the viability of social impact investing compared to traditional financing mechanisms. Results: Social impact investing addresses global challenges like inequality, climate change, and poverty by directing capital to businesses, projects, and organizations aligned with sustainable development goals. It covers a broad range of sectors, ensuring long-term economic and social sustainability. Despite its potential, challenges persist in: Impact measurement, Risk assessment, Regulatory constraints. Conclusion: Social impact investing is a viable alternative to traditional investment models, offering financial returns while creating a positive societal impact. As awareness increases among investors, policymakers, and through technological progress, the model is becoming a more mainstream approach for responsible investment.
Author: Baoxin Le
Language: English
Subfield: Finance
Domain: Social Sciences
SDG: Reduced inequalities
Open Access status: diamond
OpenAlex ID: W4410243072