This article critically analyses impact measurement in impact investing, arguing that its predominant strength—the focus on impact—is also its greatest weakness due to inherent complexities and inconsistencies. It examines various methodologies for assessing social returns and discusses the challenges of standardization and comparability across diverse impact investments. The authors highlight how the elusive nature of robust impact measurement can hinder the sector’s growth and credibility, calling for more rigorous and transparent approaches.

This OECD report provides an overview of the “State of Play” of Social Impact Bonds (SIBs) and highlights key lessons learned from their implementation. It focuses on how SIBs drive social innovation and emphasizes the critical role of robust evaluation mechanisms to assess outcomes. The document offers insights for policymakers and practitioners on the design, execution, and effectiveness of SIBs in achieving social objectives.

This article explores the symbiotic relationship between social finance and social innovation, arguing that social finance can stimulate and support innovative approaches to complex social and ecological challenges. It posits that social finance, by challenging conventional investor rationalities, creates space for experiments and directly supports social entrepreneurship throughout development and implementation. The paper provides a conceptual framework for understanding the conditions conducive to success at this nexus.

This article addresses how impact investors can ensure their investments genuinely contribute to social or environmental objectives. It introduces three parameters of impact: enterprise impact, investment impact, and nonmonetary impact, defining impact as an increase in the quantity or quality of social outcomes beyond what would have otherwise occurred. The authors caution against unrealistic expectations of simultaneously achieving market-rate returns and significant social impact, emphasizing that concessionary investments are often necessary for real impact.

This chapter from the Routledge International Handbook examines the relationship between impact investing, social enterprise, and global development. It explores the role of philanthropy and various institutions in fostering impact investments as a tool for achieving broader development goals. The piece contributes to understanding how social finance mechanisms are integrated into global development strategies.

This paper argues for the crucial role of social metrics in the field of impact investing. It emphasizes that robust measurement and evaluation frameworks are essential for understanding and demonstrating the real-world outcomes of impact investments. The author makes a compelling case for moving beyond financial returns to rigorously assess social impact, guiding investors and practitioners toward more effective strategies for achieving positive societal change.