Impact investing handbook: An implementation guide for practitioners
This report is an implementation guide for impact investing practitioners. It includes chapters on defining impact investing, identifying players involved, setting impact goals, selecting impact investment tools and structures, measuring and managing impact, and implementing best practices. The guide is informative, objective, and designed to inform the impact investment strategy.
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OVERVIEW
Defining and locating impact investing
This chapter defines impact investing as investments made with the intention of generating positive, measurable social and environmental impact, alongside a financial return. It explores the core components, common misconceptions, recent trends and drivers of impact investing, and discusses strategies used by impact investors.
Who: The players involved
Chapter 2 examines the various players involved in the impact investing landscape. It discusses the role of intermediaries and the importance of an enabling environment and collaboration in driving progress within the industry.
Why: Impact goals and investment goals
Chapter 3 emphasises the importance of aligning the impact and investment goals of an investor. It provides guidance on setting clear impact and investment goals, considering the measurement and management of impact, applying various impact frameworks and develop a theory of change to support impact goals.
How: Impact tools and impact structures
Chapter 4 covers best practices in structuring impactful investments. It examines impact investing tools and structures. It also provides guidance on selecting the right investment vehicle for the organisation’s goals and suggests incorporating Environmental, Social, and Governance (ESG) factors.
So what: Impact measurement and management
Chapter 5 explores impact measurement and management (IMM) and provides practical guidance on developing an effective IMM plan, including goals and benchmarks. This chapter also explores how the measurement is done and provides insights on reflecting and learning from feedback, ensuring coherence, transparency and improvement.
Now what: Implementation and best practices
Chapter 6 discusses key considerations for implementing an impact investment strategy that best suits the investor’s goals. It provides recommendations on creating a roadmap for impact investing, outlining the process for reviewing investments, developing an investment policy statement, and engaging stakeholders. This chapter also highlights the importance of selecting an expert team that is appropriately skilled and aligned with the investor’s mission.
The report concludes that impact investing is a growing field that offers significant potential for creating positive social and environmental change while generating financial returns. The conclusion emphasises that effective impact investing requires a strategic approach that involves clear planning, stakeholder engagement, and effective measurement and management of impact.
The Impact Investing Handbook is a comprehensive guide that helps investors define the concept, identify key players, align impact and investment goals, choose impact investing tools and structures, develop an effective IMM plan, implement best practices, and form an expert team. The report also offers practical advice and case studies.
