Frequently Asked Questions

Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending on investors' strategic goals. 

 Impact management is the process by which impact is managed, measured, and monitored during the lifetime of an investment. 

No, ESG is a set of data used by an investor to make decisions and is not tied to what actually happens in the real world. Impact investing is the focus on investing in companies that are making a tangible positive impact in the real-world.

In 2017, the Impact Management Project (IMP) brought together over 2000 organizations to define the 5 dimensions of impact – WHO, WHAT, HOW MUCH, CONTRIBUTION and RISK.

 An impact management framework is the essential structure underlying the impact management process.

 What gets measured get's managed. We want to create a process by which we can ensure an impact investment is creating the impact we want to and thought it would create. All while learning from our process and implementing what is learned to future investments to become better at impact investing. 

According to The GIIN, Impact measurement and management includes identifying and considering the positive and negative effects one's business actions have on people and the planet, and then figuring out ways to mitigate the negative and maximize the positive in alignment with one's goals.

Measuring Impact is the process of quantitatively and qualitatively measuring and evaluating the impact generated by an organization. 

A consultant that advises on and helping organizations create better more sustainable impact through their operations. 

Impact verification is an independent assessment to confirm the veracity of a fund’s reported Impact Performance while also reviewing the fund’s Impact Measurement and Management Process and Procedures. This ensures the systems in place meet industry standards and will provide reasonable assurance of ongoing impact performance.

Impact Verification is important because provides allocators and other stakeholders confidence in the impact reported, helps the impact investor improve their impact investing practices, as well as allowing the impact investor to showcase the impact created thus furthering the impact space

Impact funds are investment vehicles with a stated mandate to create or align with impact through their investments. 

Impact funds can make money in numerous ways but one is through their investment in organizations that are creating impact through their operations. 

Impact Investors make investments into impact focused companies.

Per the GIIN, While some investors have been making impact investments for decades, recently there has emerged a new collaborative international effort to accelerate the development of a high- functioning market that supports impact investing. While this market is still relatively new, investors are optimistic overall about its development and expect increased scale and efficiency in the future.

 It can be, Impact investment can range from below market based on increased impact to market rate of returns depending on the goals of an investor.

Impact due diligence is the specific assessment of an investment impact management process and procedures. 

According to the GIIN, Impact investment has attracted a wide variety of investors, both individual and institutional. 

• Fund Managers
• Development finance institutions
• Diversified financial institutions/banks
• Private foundations
• Pension funds and insurance companies
• Family Offices
• Individual investors
• NGOs
• Religious institutions
• Corporates

According to the GIIN - Investors around the world are making impact investments to unleash the power of capital for good. Continue reading to learn about the core characteristics of impact investing, who is making impact investments, the results these investments can achieve, and more. A version of this primer, answering many of the most frequently asked questions about impact investing, is available for download as well. Share it with a friend or on social media.