Key takeaways
- Impact investing goes beyond ESG by targeting investments that actively generate positive social or environmental outcomes.
- You can access impact investments in Australia through individual ASX-listed stocks, managed funds, specialised ETFs, and even certain crypto projects solving real-world problems.
- Unlike traditional ethical investing, impact investing focuses on outcomes, so it’s important to choose products that report on measurable impact, not just avoid harm.
While ethical investing is typically about avoiding companies that are doing the wrong thing, impact investing goes one step further.
In this guide we explain how the industry works and offer a list of impact investment stocks, ETFs and managed funds that are available in Australia.
What is impact investing?
Impact investing is about supporting companies, projects, or funds that actively solve environmental or social problems, while still making a financial gain.
That might be projects like reducing carbon emissions, improving access to healthcare, or funding education in underserved communities.
There are three key principles that define true impact investing:
- Intentionality: The investor deliberately aims to achieve a social or environmental impact, it’s not just a side effect of the investment.
- Measurability: The impact needs to be tracked, reported, and transparent so investors can see whether real change is being delivered.
- Return expectations: Impact investments can be made across asset classes and aim for a range of returns, from below-market to competitive market rates.
Did you know?
Compare impact investments
While there are plenty of companies and managed funds that avoid unethical practices, there are far fewer that focus on projects specifically designed to better society and the planet.
Here's a list of stocks, managed funds and cryptocurrencies that could fall under the impact investment umbrella. Think there's something missing here? Hit us up.
Code | Name | Impact Focus |
---|---|---|
CCE | Carnegie Clean Energy Ltd | Wave energy & microgrids |
KPO | Kalina Power Ltd | Biomass and low-emissions waste-to-energy |
AGL | AGL Energy Ltd | Major pivot to renewables and grid-scale battery storage |
ORG | Origin Energy Ltd | Transitioning from fossil fuel to solar and battery infrastructure |
VUL | Vulcan Energy Resources Ltd | Lithium via environmentally sustainable geothermal extraction |
Token | Name / Type | Impact Focus |
---|---|---|
CELO | Celo | Financial inclusion and mobile payments in developing countries |
XLM | Stellar Lumens (XLM) | Low-cost remittances and cross-border payments for underserved populations |
SC | Siacoin (SC) | Decentralised data storage and energy-efficient cloud alternatives |
IXO | ixo Protocol (IXO) | Verifiable impact measurement for carbon and social benefit projects |
NCT | Toucan Protocol (NCT) | Tokenised carbon credits for transparent climate action markets |
GIV | Giveth (GIV) | Decentralised platform for charitable giving and community funding |
Product Name | Type | Impact Focus |
---|---|---|
Vanguard Active Positive Impact Fund | Managed Fund | Global companies solving climate and social challenges |
LeapFrog Investments (institutional/private) | Private Equity | Emerging-market firms delivering financial inclusion & healthcare |
Regnan Global Equity Impact Solutions Fund | Managed Fund | Global companies solving climate and social challenges |
Melior Australian Impact Fund | Managed Fund | Australian and New Zealand companies delivering positive social and/or environmental impacts. |
Northstar Impact Australian Equities Fund | Managed Fund | ASX-listed companies that have products or services that are solving social and environmental challenges. |
WHEB Sustainable Impact Fund | Managed Fund | Global companies with activities providing solutions to sustainability challenges. |
The Australian impact investing boom
Impact investing is no longer a fringe movement, with the market estimated to be worth over $78 billion in Australia and US$1.16 trillion (AUD$1.73 trillion) globally.
A major driver of this growth is increased government support. In the 2023–24 Federal Budget, the Australian Government committed over $300 million to impact investment funds based on recommendations from Australia's Impact Investing taskforce.
At the same time, superannuation funds are beginning to offer more ethical aligned investment options, while large philanthropic foundations are using their capital to fund enterprises that deliver measurable social and environmental outcomes.
For example, the Social Impact Investment Trust, developed by HESTA and Social Ventures Australia, has directed capital toward affordable housing, Indigenous outcomes, and social enterprise growth.
What types of impact investments are there?
Impact investments can be anything from traditional equity (like stocks) and debt to more specialised models like blended finance and social impact bonds.
Each is designed to fund projects or businesses that deliver both a financial return and measurable social or environmental outcomes.
Common types of investments
Investors can get exposure to impact via a range of structures:
- Equity – Investing in shares of companies or social enterprises that generate positive outcomes. This can include ASX-listed stocks, ETFs and private equity funds.
- Debt – Providing loans to organisations or projects, often with below-market or concessional rates to enable impact. For example, community housing bonds and clean energy financing.
- Blended finance – Combines concessional capital (often from governments or philanthropies) with private sector funding to de-risk or scale investments. A common model in international development and increasingly in Australia via foundations and public co-investment.
- Social impact bonds (SIBs) – A performance-based loan structure where returns are tied to social outcomes.

"Impact investing is all about making a positive difference, while still earning a return on the dollar. Unfortunately it can be challenging to work out which assets or funds are truly taking steps to better the planet and which use marketing tactics to draw in shareholders. Before investing in an ethical fund, it's important to check the list of companies being held. You'll soon realise fairly quickly whether the fund manager's version of 'ethical' is aligned to your own."
Impact investing vs ESG vs SRI
While often lumped together, impact investing is distinct from ESG (environmental, social and governance) and SRI (socially responsible investing).
Strategy | Core Focus | Example |
---|---|---|
ESG | Broadly assesses risks & opportunities based on environmental, social and governance factors (e.g. carbon risk) | A super fund excluding coal stocks |
SRI | Screens out ‘negative’ industries based on ethics (e.g. tobacco, gambling) | An ETF that avoids weapons or fossil fuels |
Impact investing | Proactively seeks measurable positive outcomes, often aligned with UN Sustainable Development Goals (SDGs) | A fund financing affordable housing or green energy |
Impact investing goes beyond avoiding harm to actively fund solutions.
Key players in Australia
Australia has a growing network of investors, intermediaries and government initiatives driving impact:
- Social Ventures Australia (SVA): Operates the Social Impact Investment Trust in partnership with HESTA, investing in affordable housing, Indigenous economic development, and social enterprises.
- HESTA Super: Among the first Australian super funds to integrate impact strategies into member-directed investments.
- Impact Investing Australia (IIA): Acts as a policy advocate and maintains a comprehensive library of Australian case studies and ecosystem insights.
- Responsible Investment Association Australasia (RIAA): The peak body for responsible and ethical investing in Australia and New Zealand, certifying investment products that meet strict sustainability and transparency standards.
- Community Foundations Australia: Supports regional and community impact investing initiatives.
Investment returns, risks & impact
Impact investing has matured significantly in recent years, but questions around returns, risk, and measurable impact remain front of mind for investors.
How impact is measured
It's relatively easy to measure a company's financial return. Investors can look at revenues or profits.
However, measuring their "impact" is a little less easy to see.
You can start by looking at the UN Sustainable Development goals. These 17 goals aim to address the key global challenges, including those related to poverty, inequality, climate, environmental degradation, prosperity and peace and justice.
Many impact investment funds now use these as a framework to measure a company's impact. Companies also use the Gates Foundation and World Health Organisation to inform their assessment of "impact".
If you find a business that aligns with these objectives, then you might consider it part of your impact investing portfolio.
What returns should you expect?
According to the Global Impact Investing Network (GIIN), most investors seek market-rate or risk-adjusted returns, and the data suggests they’re achieving them.
In its 2024 market sizing report, GIIN found that over 70% of investors reported returns in line with or exceeding expectations.
That said, impact investments can span a wide risk/return spectrum. Some funds aim for competitive, long-term growth, while others may prioritise concessional returns in exchange for higher-impact outcomes.
The key is matching your financial goals with the type of impact strategy and timeframe you’re comfortable with.
The risks: Greenwashing & lack of standards
One of the biggest challenges in impact investing is greenwashing. This is when a fund or company overstates its environmental or social credentials.
Without universal standards or independent audits, it can be difficult for investors to verify whether an investment is truly impactful.
This lack of consistency makes due diligence critical. Look for transparency in reporting, alignment with recognised frameworks like IRIS+ or the SDGs, and third-party verification where possible.
Greenwashing case: Vanguard
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