Thomas Kostigen explores the opportunities in impact investing in his opinion column Ethics Monitor from Market Watch.

From original article:

"Loosely defined, impact investing aims to solve social or environmental challenges while generating financial profit. It differs from the more traditional form of investing in the space - socially responsible investing, or SRI - by actively seeking to place capital in businesses and funds that produce returns and effect social change. SRI vehicles typically rely on screens to filter out "sin" stocks among public companies. In short, SRI uses a "negative" approach to invest in good causes while impact investing uses a more positive approach.

"To be sure, there is crossover. Also, many of the big players that have embraced impact investing are the same players in the SRI sector. One executive from the Calvert Group, a well-known SRI fund group, is said to have left to launch a series of offerings for impact investors. A look at the Global Impact Investor Network shows many familiar SRI investment companies."

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