Impact investing aims not only to secure financial returns, but also to generate positive social and environmental impacts.
Investors include foundations, development finance institutions, specialized investment funds, and ultra-high net worth individuals. Impact investing is channelling substantial private capital flows into initiatives that address some of the most pressing challenges confronting developing Asia and the Pacific. A study by the Monitor Institute has projected that the global impact investing market could grow to $500 billion by 2018.
In line with its overarching objective of poverty reduction and strategic agenda of inclusive growth, ADB supports impact investing in its developing member countries. Two ongoing streams of work include support for inclusive business, and support for social enterprises. Inclusive business is a business initiative that engages the low-income segment of the population in a way that benefits poor people by providing livelihood opportunities and access to essential goods and services. A social enterprise is a business-oriented not-for-profit, or a mission-oriented for-profit enterprise.