Financial Instruments for Social Innovation and Impact

This OECD chapter outlines strategies to align impact investment with the Sustainable Development Goals (SDGs). It presents a framework called the “impact imperative,” emphasizing the need for financing, innovation, data, and integrity. The report critiques prevailing practices where investors often prioritize returns over measurable impact. It calls for better regulation, data harmonization, and clearer standards to prevent “impact washing.” Recommendations include fostering ecosystem-wide cooperation among governments, donors, and private investors to build a scalable, credible market for investments that deliver tangible social and environmental outcomes.