# Impact Investing

*ESG & Sustainable Finance — Finicade finance glossary*

Impact investing seeks measurable social or environmental outcomes alongside a return, with the impact intentional and reported rather than incidental.

Impact investing seeks measurable social or environmental outcomes alongside a financial return, with the impact intentional and reported rather than incidental. Its defining test is additionality: whether the outcome would have happened anyway without your capital. Buying shares of a solar company on the secondary market funds no additional panels, which is why serious impact capital concentrates in private and primary markets.

**Also known as:** impact funds, blended finance, catalytic capital

**Related terms:** [Additionality](https://finicade.com/glossary/additionality), [Sustainable Investing](https://finicade.com/glossary/sustainable-investing), [Socially Responsible Investing](https://finicade.com/glossary/socially-responsible-investing), [Venture Capital](https://finicade.com/glossary/venture-capital), [ESG](https://finicade.com/glossary/esg)

Source: https://finicade.com/glossary/impact-investing