Impact investments are increasing in popularity as a means of addressing some of the world’s most challenging social and environmental problems. Although the expression encompasses an extensive range of investment activity, the Global Impact Investing Network defines impact investments as: “investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return”.

The growing trend towards impact investments was corroborated by the launch of the UK’s first organisation dedicated to impact investing in June this year. The Impact Investing Institute is a new, independ...