By: Thomas F. Morante and Stephanie Bagot
Impact investing has been gaining new prominence recently to respond to the environmental and social challenges that the traditional frameworks of philanthropy alone could not address. Impact investors generally seek to generate a double or multiple bottom-line, meaning achieving positive social and/or environmental change in addition to securing a financial return. Some examples of impact investors include development finance institutions, banks, impact investing firms, family offices, public charities, and private foundations. These entities usually invest in ventures aligned with their mission, priorities, or sustainable goals (e.g., clean energy, health, education, financial services, sustainable agriculture, gender equality). Many examples of successful impact investments and ventures exist. One such success story is the Patagonia venture fund launched in 2013, known as Tin Shed Ventures, which invests in “innovations that overcome systemic barriers to regenerative agriculture adoption on land and water,” with outcomes including the reduction of waste and the environmental impacts of agriculture.
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