Impact investing is a growing trend in the financial world, where investors seek to generate positive social and environmental impact alongside financial returns. This approach involves aligning investment decisions with specific social or environmental goals, such as addressing climate change, promoting gender equality, or supporting sustainable agriculture.

One example of impact investing is the funding of renewable energy projects. By investing in solar or wind energy initiatives, investors can contribute to reducing carbon emissions and mitigating the effects of climate change while also earning potential financial returns.

Another example is investing in companies that prioritize fair labor practices and ethical supply chain management. These investments not only support businesses that value social responsibility but also encourage other companies to adopt similar practices.

References:

• "The Global Impact Investing Network" - https://thegiin.org/
• "Impact Investing: Transforming How We Make Money While Making a Difference" by Jed Emerson and Antony Bugg-Levine