A new report makes the case for investments that consider impact first and financial return second. But critics say such investments are mainly for the wealthy.
Advocates for impact investments have long made the case that investments can do social good without sacrificing returns.
And then there are the wealthy philanthropists who give money to nonprofit organizations trying to bring about social change without expecting any financial return.
But there is a middle ground for investors — a little more impact for a little less return. It has been the third rail of socially responsible investing, though, mainly because impact investors fear that such an approach could embolden critics who have long warned that investors will get lower returns if they want to push for change.