This paper explores the regional variations in impact investment, proposing a theory of impact investing ecosystems. It delves into the factors that contribute to the unique development and characteristics of impact investment across different regions. The study examines how local contexts, including entrepreneurship, innovation, and resource acquisition dynamics, shape the evolution of these ecosystems. Understanding these differences is crucial for fostering more effective and tailored impact investment strategies globally. The theory highlights the interconnectedness of various elements within an ecosystem that influence its capacity for social and financial returns.

This article proposes a value creation approach to assess the performance of impact investing. It examines how impact investees, often social enterprises, generate both financial and social value, highlighting the concept of hybridity. The authors argue for a holistic understanding of performance that integrates both dimensions, moving beyond traditional financial metrics to capture the full scope of value generated by impact investments. This framework aims to provide a more comprehensive evaluation of impact investment efficacy.

This paper delves into socially responsible investing (SRI) and impact investing, exploring their theoretical underpinnings and empirical issues. It examines how these investment approaches aim to generate both financial returns and positive social or environmental outcomes. The authors discuss various instruments like Social Impact Bonds (SIBs) and the concept of blended finance, highlighting the complexities and challenges in integrating social goals with financial objectives within capital markets. The research provides insights into balancing profit and social benefit in investment decisions.

This academic paper reviews the design and impact of Social Impact Bonds (SIBs) in public service delivery, exploring their potential for Latin America. It covers transaction costs, policy drivers, and public-private models, highlighting how SIBs work under different institutional contexts. It also proposes design recommendations for better uptake and provides a global perspective on SIB development, emphasizing their role in redistributing risk and benefits for greater social impact.

This article examines the concept of “value plurality” within the market of impact investing, where both financial and social/environmental values are pursued. Drawing from valuation studies, it explores how market proponents navigate and define these complex value dimensions. The paper frames impact investing as a case of market design, illustrating how a valuation infrastructure is constructed to make social and environmental value calculable for investors without necessarily assigning it a financial equivalent.

This article reviews the emerging literature on Social Impact Bonds (SIBs) in high-income settings, identifying three narratives: public sector reform, financial sector reform, and a cautionary perspective. It analyses these narratives against themes of public versus private values, outcomes contracting, and risk allocation. While the first two narratives present SIBs as “win-win” solutions, the cautionary narrative highlights potential risks. The article concludes that empirical evidence on active SIBs is limited and more research is needed to fully understand their benefits and drawbacks.

This document from Social Finance Inc. outlines a conceptual framework for social outcomes contracts and their role in system strengthening. While the provided text focuses on a broader “social taxonomy” and due-diligence duties within a sustainable finance legislative framework, the original intention of the user’s input points to social outcomes contracts. It touches upon objectives like access to social products and services, and how the social taxonomy links criteria to activities for a significant contribution, potentially going beyond current due-diligence initiatives.