Social Impact Investing - Praxisleitfaden

Resource context and publication

This practice guide, titled “Social Impact Investing” (Praxisleitfaden), is published by ICG Institut. The database entry lists ICG Institut as the publisher and does not name individual authors (“not named”). It frames social impact investing as an approach that aims to assess not only financial return but also the positive effects an investment can trigger, and it presents this concept with a focus on real estate and the property sector.

Why real estate is in focus

The guide situates real estate within broader economic and societal shifts. It notes that recent decades were dominated by the pursuit of economic returns and a shareholder-value mindset. It then points to multiple disruptions and pressures—climate change and its effects, the pandemic and its far-reaching consequences, rising social tensions, and economic inequality—as drivers of a changing mindset across politics, business, and society. In this context, the guide argues that the framework conditions for companies are being redefined in favor of greater sustainability and climate protection.

Regulatory and social pressure on the sector

According to the text, the real estate industry is particularly affected by these changes. It highlights several external drivers increasing pressure on the sector to contribute to climate action and social justice: stricter laws, new regulations, and public movements such as “Fridays for Future.” In parallel, the guide states that capital markets are also demanding innovation, implying that access to capital and investor expectations are increasingly linked to new, sustainability-oriented approaches.

What the guide means by “Social Impact Investing”

The guide describes social impact investing as a new and innovative movement that positions itself through values (“attitude”), participation, and a clear commitment to stakeholder value. In practical terms, it defines the approach as one in which investment decisions evaluate not only expected returns but also the “impact” created by the investment. This dual lens—return and impact—is presented as the defining feature that differentiates impact-oriented investing from approaches that focus solely on financial performance.

Translating impact investing to property and housing

A central claim of the publication is that it explains the fundamentals and mechanisms of impact-oriented investments and transfers them—explicitly described as a first—into the real estate sector. By doing so, it positions the property industry, including housing-related assets, as a domain where investors can apply impact criteria alongside financial criteria. The guide’s emphasis on sustainability, climate protection, and social justice suggests a relevance for investment strategies connected to sustainable housing and the broader built environment.

Scope and intended contribution

Overall, the guide presents impact investing as a response to changing societal expectations and market demands, with real estate portrayed as a sector under increasing regulatory, social, and financial-market pressure to innovate. It aims to provide an overview of core concepts and operating mechanisms of social impact investing, and it seeks to establish a structured way for real estate investment decisions to account for both financial outcomes and measurable societal effects.