Impact Investing in Germany
Impact investing means investing with an intention to produce a measurable social or environmental outcome alongside a financial return. In Germany, the hard part for funds is stating the intended outcome before investing and reporting what happened afterward.
What makes an investment an impact investment
The Global Impact Investing Network names intentionality, evidence and impact management as core characteristics. A fund that merely excludes one industry has not yet shown the outcome its capital aims to create. Investors should ask who benefits, how the change is measured and what part the investment plays.
Return and evidence
Financial return and impact are separate measures. A manager needs an investment case, a baseline, a method for measuring outcomes and a way to report setbacks. Depending on the strategy, the assets can be private companies, debt or listed securities. The private-equity page explains the ownership model when the strategy uses private companies.
Impact investing at Finance Loop
Finance Loop brings investors, fund managers and advisers together on investment methods and reporting. The ESG investing page covers sustainability characteristics and fund claims; impact investing asks for a stated outcome and evidence of it.
Events on this topic
Impact Investing in Germany and Finance Loop
Finance Loop gives investors and fund managers a place to compare how they define and measure outcomes. Its events link those questions to portfolio data and fund reporting.
Finance Loop is an expert network for new technologies in finance.