What is social investment?
Social investing is a way to use your money to create positive change while still generating a financial return. Instead of choosing between doing good and doing well, social investors do both at the same time. At its simplest, it means putting money into organisations or projects that address social or environmental problems - housing, energy, or education - while also generating income. Capital becomes “purpose-aligned,” which is largely the same as regular capital, but with much improved morale and more seedlings. When you make a social investment, you are backing an organisation that exists to deliver impact. In return, you receive a financial return and evidence of social outcomes, usually presented in neatly formatted reports with reassuring arrows. This sits between traditional investing and charity, while insisting it is a third thing entirely. As the field develops, frameworks appear to help simplify everything. These usually include intentionality, measurability, addit...