The report notes that impact investing may be implemented by organisations across a range of sectors with varying motivations. The section concludes by reinforcing the report’s purpose: helping charitable trusts, and foundations make informed impact investing decisions that account for impact and financial objectives.

This highlights how impact investing has evolved and important global trends in the space, such as impact investing becoming more mainstream and more diverse. Additionally, the report discusses the role of regulation in impact investing and mentions organisations such as the Global Impact Investing Network (GIIN) and its framework for impact measurement and management (IMM), which may help with understanding the effects of impact investing.

This part outlines what environmental, social and governance (ESG) issues in an investment are, and how they are measured. The report emphasises that ESG issues, such as climate change, are material factors impacting the financial health of an investment, and these issues should be integrated into the overall investment process. The report also underscores the importance of transparent ESG reporting as a tool to improve transparency and decision-making.

The report highlights different types of impact investment structures such as direct investments, pooled investments, and hybrid investments. The report shares key considerations for charitable trusts and foundations when selecting an investment structure such as governance and control, investment performance, and impact. Risk management is also discussed, with recommendations for trustees and executives to underscore fiduciary duties when assessing potential investments.

The report outlines the critical process of creating an impact investing strategy. It suggests several questions to guide the design of an impact investing strategy, including a focus on local communities, specific industries, and desired social or environmental outcomes. The section concludes by reinforcing that an iterative cycle of strategic planning allows trustees and executives to learn and adjust for successful impact investing.

This part offers guidance on how to measure impact effectively and efficiently. The guide emphasises the importance of selecting appropriate impact metrics based on the investment and its intended impact, and using objective and standardised methodologies for impact measurement. The report also highlights the range of tools and intermediaries available in the impact measurement space and recommends selecting those that are appropriate to an organisation’s needs.

It outlines the importance of an impact lifecycle approach to impact management and sharing examples of models such as the Impact Management Project (IMP) and the five dimensions approach. The report illustrates the management of impact in different types of investments and provides an overview of considerations like interim results and ongoing reporting.

The report has proceeded to provide recommendations such as:

• Incorporate ESG considerations into an overall investment process.
• Select investments carefully, ensuring alignment with impact objectives.
• Establish a clear impact investing strategy based on specific impact goals and financial objectives.
• Use appropriate metrics for impact measurement and consider leveraging tools and intermediaries for more complex investments.
• Ensure ongoing monitoring and reporting of impact to stakeholders.