Impact investing could encourage more people to get involved in efforts that have been traditionally relegated to philanthropy or charitable contributions. With the potential to achieve at least some return, more dollars may be directed towards companies that are trying to address society's problems. Admittedly, impact investments tend to generate lower returns than the stock market as a whole. A 2017 study by the Global Impact Investing Network (GIIN) of 71 private equity impact funds found their average net return rate to be 5.8% (well below the S&P 500's average rate of return). To be clear, this financial give-up only applies to impact investing in the strictest sense. If by "impact investing," you actually mean ESG investing, you can expect much better returns. Multiple studies have shown that investors can build ESG-focused portfolios without compromising returns. In fact, Morningstar found that in 2021, US-based ESG funds actually outperformed their conventional fund peers.  A recent ruling from the US Department of Labor may eliminate impact investing vehicles from 410(k) or corporate pension plans. The rule prohibits fiduciary financial advisors from selecting investments based on any goals other than achieving the highest possible return for their clients.  The rule doesn't specifically call out ESG or impact investing. Still, any investments that have a below-average anticipated rate of return (as many impact investments do) could be eliminated from employer-sponsored retirement plans moving forward.