Impact investing brings together public and private investors to target set outcomes and goals for positive social or environmental impact. It is an innovative way to distribute risk and inject market mechanisms that hold programs accountable and reward performance.
Notable examples include Social Impact and Green Bonds and funds.
Impact capital is a way for companies to raise funds for improvements to their ESG profile through mezzanine financing and equity investments.
Having objective third-parties to measure outcomes and net impact is central to the effectiveness of these instruments.