Investors who invest with an ESG approach are often looking to both (i) minimize potential risks which may inhibit the profitability of their investment and (ii) uncover opportunities for cost reduction or increased value of their investments through considering environmental, social or governance factors throughout the investment making process.
Impact investors are generally seeking to generate target social and/or environmental outcomes. For example, this could include a desire to mitigate the effects of climate change or increase access to affordable housing.