The concept of “impact investing” has received a lot of press lately. Here are some questions and answers.

Question: When did impact investing begin?

Answer: Since 1898 when the Quakers Friends Fiduciary Corp. adopted a policy prohibiting investment in weapons, alcohol or tobacco, investors throughout history have found ways to take a stand via their investments. More recently in a poll, 75 percent of individual investors noted interest in sustainable investing, while 71 percent believe companies with leading sustainability practices may be better long-term investments. The most common method of aligning your wealth with your values, called impact investing, has become popular because it both feels right and makes good business sense.

Q: Why do you think impact investing has become so popular now?

A: With the internet, people can find resources immediately, and most investors are hungry for more information, not less. Impact investments use both nonfinancial and financial data in the investment selection process. Nonfinancial information such as environmental, social and governance practices allows investors to consider all factors that affect profitability. In addition, since the financial crisis, investors are much more cautious about investment decisions and welcome all information available.

Q: What limitations exist when investing with impact?

A: Many impact investments are relatively new, making it more difficult for investors to determine the merit of each strategy over different market cycles. As time goes on, and the data become available, this limitation should be alleviated. Just as many environmentally conscious car consumers started with hybrids before buying 100 percent electric, investors interested in impact might want to consider starting with a portion, and adding more to impact over time as more data are available.

Also, many traditional investors believe that by integrating values into investing, there is a sacrifice of return, but now the opposite has been proved. Just as the “digital economy” is now recognized as just “the economy,” the term “impact investing” will likely be considered “investing” as this method becomes the norm for the industry.

Q: What does it mean to “vote with your dollars” through investing?

A: With the next big election several years away, people are looking for every lever they can pull to make a difference now. Most people don’t realize that they can advocate for change with their investments. Thanks to the expansion of options in the last five years, now investors can vote with their dollars via impact investing. With strategies that target specific global issues and perspectives, every dollar investors own can become an expression of their worldview.

Q: What are some of the ways that investors can express their values through investing?

A: If an individual is passionate about climate change and wants to own an investment that is fossil-fuel-free, there are multiple options to achieve this. If a nonprofit focused on women’s issues wants to make sure its endowment focuses on gender equity in the workplace, there are now investments with this specific lens. One of the most popular strategies has been for Catholic investors wanting to align their investments with Catholic values. As a shareholder, investors can advocate for the type of corporate practices that can lead to the future they hope for.

Noel Pacarro Brown is financial adviser of The Pacarro Group at Morgan Stanley. Reach her at Noel.Brown@ms.com or 525-6910.