Hello, welcome everyone to Impact Insight, powered by Astoria.

Now that we know what Impact Investing is, the next question we often get from our clients

and prospect is what is actually the difference between Impact Investing and ESG or SRI socially responsible investing.

The person asked wearing this question is, Natasha Gerda had a free search at Astyria.

Impact investing is often associated with environmental, social and governance issues known as ESG,

especially as socially responsible business practices, are gaining increasing attention in the business world.

While both have many features in common, they refer to distinct practices.

Environmental, social and governance practices refer to business decisions that could affect the returns of a company.

For example, a company that knowingly employs child labor or engages in discrimination could be at a competitive disadvantage,

particularly when marketing to socially conscious consumer, for example.

So ESG investors are typically concerned with environmental social and government's

risks and opportunities that may have a financial materiality.

So these risks and opportunities may affect the financial performance of the company,

and therefore the share price in the medium and long term.

On the other hand, impact investors go further.

They invests where either the underlying product or service or their capital

or engagement seeks to contribute to solutions to one or more big world problems.

So impact investing in the practice of seeking investments that specifically optimize a goal other than profits.

This might include investments in clean energy, for example, education or microfinance.

So in a nutshell, ESG refers to how a company behaves and operates, an impact to what the company is actually doing.

Thank you everyone for listening to this podcast.

Please feel free to contact us if you have suggestions for further questions.

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