Impact Investing Definitions and Common Themes

This article is a technical report that analyzes various definitions of impact investing as articulated by prominent organizations in the financial sector, including non-profits and for-profit institutions. It outlines the recurring themes and subtle variations in the definitions provided by entities such as the Global Impact Investing Network (GIIN), Fidelity Charitable, and the International Finance Corporation (IFC). The report emphasizes four common themes: intentionality, measurability, focus on social and environmental matters, and the coexistence of financial returns with impact. It explains that impact investing requires capital to be deployed with the explicit aim of generating positive outcomes, which distinguishes it from traditional ESG approaches. The report also discusses how the definitions align with the United Nations Sustainable Development Goals (SDGs) and the importance of accountability and transparency in measuring outcomes. The conclusion reiterates that all investments have social and environmental impacts, and impact investors aim to enhance positive outcomes through a disciplined framework.