Pitfalls of Impact Investing

Impact investing is the most sophisticated type of ESG investing. The additional intention is to achieve positive social, ethical, or ecological effects with the investment. Criteria such as intentionality and causality intend to bridge the gap between positive impact and capital provision. Professional investors check many aspects of a project in comprehensive due diligence. Often, there is a lack of systematic intertwining of professional and corporate impact measurement. The article identifies the pitfalls that currently still exist in practice