2/19/2023 0 Comments Framework canigo![]() ![]() Government investors and development finance institutions can PROVIDE PROOF OF FINANCIAL VIABILITY for private-sector investors while targeting specific social and environmental goals.Institutional and family foundations can LEVERAGE SIGNIFICANTLY GREATER ASSETS to advance their core social and/or environmental goals, while maintaining or growing their overall endowment.Banks, pension funds, financial advisors, and wealth managers can PROVIDE CLIENT INVESTMENT OPPORTUNITIES to both individuals and institutions with an interest in general or specific social and/or environmental causes.Here are a few common investor motivations: Many types of investors are entering the growing impact investing market. The impact investing market offers diverse and viable opportunities for investors to advance social and environmental solutions through investments that also produce financial returns. Impact investing challenges the long-held views that social and environmental issues should be addressed only by philanthropic donations, and that market investments should focus exclusively on achieving financial returns. Learn more about the Core Characteristics of Impact Investing launched on April 3, the four tenets that establish baseline expectations for impact investing, here > Reporting on social and environmental performance to relevant stakeholders Monitoring and managing the performance of investees against these targets Setting performance metrics/targets related to these objectives using standardized metrics wherever possible Establishing and stating social and environmental objectives to relevant stakeholders In general, components of impact measurement best practices for impact investing include: Investors’ approaches to impact measurement will vary based on their objectives and capacities, and the choice of what to measure usually reflects investor goals and, consequently, investor intention. IMPACT MEASUREMENT A hallmark of impact investing is the commitment of the investor to measure and report the social and environmental performance and progress of underlying investments, ensuring transparency and accountability while informing the practice of impact investing and building the field. ![]() RANGE OF RETURN EXPECTATIONS AND ASSET CLASSES Impact investments target financial returns that range from below market (sometimes called concessionary) to risk-adjusted market rate, and can be made across asset classes, including but not limited to cash equivalents, fixed income, venture capital, and private equity. INVESTMENT WITH RETURN EXPECTATIONS Impact investments are expected to generate a financial return on capital or, at minimum, a return of capital. INTENTIONALITY An investor’s intention to have a positive social or environmental impact through investments is essential to impact investing. View these four tenets that establish baseline expectations for impact investing, here > ![]() Note: On April 3, 2019, the GIIN published the Core Characteristics of Impact Investing, which complement this definition and aim to provide even further clarity about how to approach impact investing. The practice of impact investing is further defined by the following elements. Scroll back to the top for more information about impact investing ![]()
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