The term impact investing first appeared in 2008 and today the most commonly used definition is investing made with the intention to generate positive, measurable social and environmental impact alongside a financial return.

A similar formulation was adopted by the G8's Social Impact Investment Taskforce: the defining characteristic of impact investment is that the goal of generating financial returns is unequivocally pursued within the context of setting impact objectives and measuring their achievement.

Impact investing has occurred in both emerging and developed markets and the goals of impact investors in committing their capital and ancillary resources ranging from below market to market rate returns.

Impact investing has occurred in a broad range of sectors including sustainable agriculture, renewable energy, conservation and microfinance, and governments and private enterprises have turned to impact investing tools to address challenges that have arisen relating to the delivery of basic services such as housing, healthcare and education.