Investing for Impact: A Guide for Impact Investors and Sustainable Entrepreneurs

Impact investing is aimed directly at creating a positive environmental or social impact by identifying and solving a particular environmental or social problem.  In contrast to the efforts of traditional philanthropy to generate positive, measurable social and environmental impact, impact investors also seek a financial return.  Impact investment is an emerging strategy within the umbrella of sustainable finance, which seeks to provide the external financing necessary to support progress toward ambitious public policy initiatives launched by governments such as the 2030 Agenda for Sustainable Development and its broad range of Sustainable Development Goals.  Like other categories of sustainable finance, impact investment considers environmental, social and governance factors when selecting and managing investees, but impact investors are notable for their proactive collaboration with entrepreneurs launching businesses with a clear social or environmental purpose.  This book begins with a brief introduction to sustainable finance before embarking on an in-depth discussion of definitions and core principles of impact investing, the emerging impact investing ecosystem, the composition and preferences of the global impact investing community, and the inherent linkages between impact investment and impact entrepreneurship.  The book continues with an overview of impact investment tools and structures including formation and management of impact investment funds; analysis of negotiating the terms of impact investment deals; and coverage of impact measurement and management and impact reporting.