Inves­ting for a Bet­ter Tomor­row: Pre­sen­ta­ti­on of dif­fe­rent Stra­te­gies to Cre­a­te Posi­ti­ve Impact in Prac­ti­ce

Every euro we invest shapes the future. It can reinforce systems that drive inequality and environmental breakdown — or it can fuel solutions that make societies more just, resilient, and sustainable. Traditionally, investment decisions have balanced risk and return. But in a world marked by climate urgency, rising inequality, and shifting global dynamics, there is a third dimension we can no longer ignore: impact.

From avoiding harm to creating positive impact

The roots of impact investing lie in a simple insight: if money can create harm, it can also create good. As Steven Serneels highlighted in its key note speech, the 1990s saw investors begin to exclude harmful industries — such as tobacco, weapons, and heavy polluters — from their portfolios. This practice, known first as Socially Responsible Investing (SRI) and now as Responsible Investing, was driven mainly by a wish to avoid reputational damage and manage risks. Its focus was on reducing negative impact.

But soon a new question arose: what if investments could do more than “do no harm” — and actively contribute to solutions? This opened the door to two complementary strategies that remain central today : sustainable and impact investing. Sustainable investing and impact investing are complementary approaches that serve different purposes within the broader movement toward the creation of positive impact. Each brings distinct strengths and limitations and both are essential to building a resilient and inclusive society.

Sustainable Investing : This strategy prioritizes promoting sustainable products and services that have already proven their positive impact. In recent years, this approach has gained traction, reinforcing the idea that economic growth and sustainability can go hand in hand. With advancements in the circular economy, renewable energy, and climate technology, businesses now have opportunities to generate financial returns while addressing pressing environmental and social challenges.

Impact Investing : Not all solutions for transitioning to a more sustainable society are readily available. This is where impact investing comes into play. Unlike sustainable investing, which focuses on mainstreaming solutions, impact investors seek out companies that are developing innovative business models or solutions to tackle problems that currently lack viable solutions. While this strategy inherently carries higher risks, it can also generate attractive financial returns, making it a valuable option for investors looking to drive both economic and social transformation.

Together, these strategies form a spectrum: from responsible to sustainable to impact investing.

Two key questions: The “what” and the “how”, a practical framework for investors

So how can we tell the difference between sustainable and impact investing? Two guiding questions are essential:

1. The What – What exactly are we investing in? Is the company’s core mission to tackle social or environmental challenges, or to upscale proven sustainable products and services?
2. The How – How intentional is the investor? Is there a clear plan, measurable targets, and additionality at financial or non-financial level?

This distinction also shows up in measurement. Sustainable investors often track outputs — the number of solar panels installed, schools built, or customers reached. Impact investors aim for outcomes — emissions reduced, children gaining access to quality education, or families lifted out of poverty. In practice, impact investors also tend to engage more directly with the organizations they finance — not only providing capital, but also offering expertise, networks, and long-term partnerships.

To help actors in Belgium navigate this landscape, Impact Finance Belgium (IFB) has developed a framework that bridges international standards with local practice. Building on models such as the ABC framework of Impact Frontiers and the principles for impact investing of the Global Network of Impact Investors (GIIN), IFB’s framework offers:

• Clear definitions to distinguish responsible, sustainable, and impact investing.
• Guiding questions for investors to assess their own strategies.
• Practical examples — more than 15 Belgian cases ranging from large institutional investors to social enterprises and funds.

These cases, published in the free report “Investing for a Better Tomorrow”, illustrate that investing with impact is not abstract theory. It is already happening across Belgium — in renewable energy, social housing, circular economy, and innovative finance. Together, they show how capital can be aligned with societal goals.

If you like to know more, feel free to join the crash course on Sustainable and Impact investing, illustrated by real examples at November 4 2025 in Tour & Taxis.