Impact investing is a much talked about subject at the moment. But what exactly is it? Impact investing is a field of investment that creates positive social or environmental impact as a financial return. Impact investing leads with intentionality and provides real and clear measurements of the outcomes.

It can help deliver positive outcomes in the development of many of society’s issues including poverty, sustainable development and the ageing population. It helps to bridge the gap between the demand for improvement and the ability of the Australian Government to give to such projects.

Impact investing makes it possible for investors to align their financial aims with their values providing both social and financial returns. It is also an important source of capital for those organisations that may not be able to access funding from standard mainstream financial markets.

Once such organisation called Impact Investing Australia has been established to improve and develop the market for impact investing. It was established in 2014 and is the first organisation of its kind in Australia. The not-for-profit is definitely leading the way to change.

Impact investing can assist where governments and philanthropic organisations fail. It differs from grant funding as it provides some form of financial return and challenges traditional investments with its clear positive benefits. It is attracting many supporters and is turning out to be a powerful tool in health, energy, education, child care, affordable housing and community regeneration areas. And the list is only going to get longer as more people come to understand what it offers on a global scale.

Unique in the investment world, impact investing offers the possibility of accepting a lower financial return in exchange for positive social outcomes.

The Australian Advisory Board on Impact Investing is 100% focused on growing the Australian-based market, estimated to reach over $32 billon within a decade. Estimations of the worldwide market worth lies somewhere between $450 billion and $650 billon within the next five years alone. Not bad for the new kid on the block in terms of financial investment opportunities.

Australia is also one of eight countries participating in the Social Impact Investment Taskforce and stands to benefit from this partnership. Helping others and earning money need not prove to be such a disparity.

Leapfrog Investments has already raised $400 million for microfinance and micro-insurance strategies for Asia and Africa. And Goodstart Early Learning is currently providing care to 73,000 children, heavily backed and supported by $95 million in investment capital. The return on investment definitely stretches further than the boundaries of the Australian border and can bring global benefits. The market is starting to gain momentum but in reality The Australian Advisory Board on Impact Investing has only scratched the surface. The infrastructure still needs to be put in place to achieve maximum results.

Rethinking ways of doing business to bring about both financial and social impact is a step in the right direction. We should celebrate in the optimism this kind of scheme brings. Through this and other methods, it is becoming clear that we can be the change we wish to see in the world providing much hope for many social sectors.