Impact Investing: India Philanthropy
The EdelGive Hurun India Philanthropy List 2023, which was released on November 2, has 119 philanthropists who gave away ₹8,845 crore in 2022-23. Philanthropy is welcome, but impact investing would benefit society more.
What is impact investing? It is investing that prioritizes an intentional, measurable social or environmental benefit over maximizing financial returns. Impact investing is gaining traction among asset managers as a superior alternative to vaguely defined ESG integration. They aim to generate decent financial returns while helping achieve identified social and environmental goals. The global hunt for impact investing opportunities is welcome, but Indian entrepreneurs should model themselves on the Omidyar Network rather than chase after an ESG gloss to their returns.
