Social finance refers to financial activities that aim to generate positive social and environmental impacts alongside financial returns. This approach includes investments in areas like affordable housing, renewable energy, and community development, where the goal is to address social issues while also achieving economic benefits. In social finance, various instruments are used, such as social impact bonds, microfinance, and community investment funds. These tools help direct capital towards projects that can improve lives and communities, making it possible for investors to support initiatives that align with their values while still seeking a financial return.