It depends.
Both ESG investing and impact investing bear risks and opportunities, similar to traditional investing. There is a wide variety of approaches, structures, metrics and considerations to achieving a balance of impact goals and financial returns. Impact Investors often build on traditional practices to address and align their impact goals and innovate to achieve or unlock financial potential. As companies, investors and other stakeholders increasingly recognize the value of integrating ESG considerations into decision-making and accountability, establishing a baseline ESG strategy is increasingly seen as a standard part of the market.