Discover how to invest your capital to achieve a powerful, lasting impact on the world.
The Global Handbook of Impact Investing: Solving Global Problems Via Smarter Capital Markets Towards A More Sustainable Society is an insightful guide to the growing world-wide movement of Impact Investing. Impact investors seek to realize lasting, beneficial improvements in society by allocating capital to sources of impactful and sustainable profit.

This Handbook is a how-to guide for institutional investors, including family offices, foundations, endowments, governments, and international organizations, as well as academics, students, and everyday investors globally. The Handbook s wide-ranging contributions from around the world make a powerful case for positive impact and profit to fund substantive, lasting solutions that solve critical problems across the world.

Edited by two experienced and distinguished professionals in the sustainable investing arena and authored by two dozen renowned experts from finance, academia, and multilateral organizations from around the world, the Global Handbook of Impact Investing educates, inspires, and spurs action towards more responsible investing across all asset classes, resulting in smarter capital markets, including how to:

· Realize positive impact and profit

· Integrate impact into investment decision-making and portfolio

· Allocate impactful investments across all asset classes

· Apply unique Impact Investing frameworks

· Measure, evaluate and report on impact

· Learn from case examples around the globe

· Pursue Best Practices in Impact Investing and impact reporting

While other resources may take a local or limited approach to the subject, this Handbook gathers global knowledge and results from public and private institutions spanning five continents. The authors also make a powerful case for the ability of Impact Investing to lead to substantive and lasting change that addresses critical problems across the world.

ELSA DE MORAIS SARMENTO is an Associate Researcher at NOVAFRICA at Nova Business School of Management and Economics. She co-edited The Emerald Handbook of Public Private Partnerships in Developing and Emerging Economies.

R. PAUL HERMAN is CEO of HIP (Human Impact + Profit) Investor Ratings and Portfolios and has served as faculty at business schools around the world. He is author of The HIP Investor: Make Bigger Profits by Building a Better World.

Klappentext

PRAISE FOR GLOBAL HANDBOOK OF IMPACT INVESTING

"Impact investing is a new opportunity to combine forces of private capital and public policy objectives. This Global Handbook of Impact Investing offers information and inspiration for using these tested but still relatively new financial instruments for achieving the Sustainable Development Goals (SDGs)."
Hon. Jyrki Katainen, MSc, President, Finnish Innovation Fund SITRA; former European Commission's Vice-President for Jobs, Growth, Investment and Competitiveness; former Prime Minister of Finland

"If we truly want a more sustainable, more inclusive world, we must change the way we invest our money. This book helps move us toward a future in which every investment decision considers impact alongside profit. Money can do so much more than just make more money, and the problems of our world are far too urgent for our capital to underperform."
Amit Bouri, MBA, MPA, Co-founder and CEO, Global Impact Investing Network

"The world of investing needs to evolve our values and priorities towards more interdependence so that economic growth will support and transform, instead of jeopardize, equitable human development for all 7 billion of us. This global handbook contains ideas, innovations, and pathways towards a better world for all of us via our portfolios."
Annie Chen, JD, Founder and Chair, RS Investment Group, Hong Kong

"This book explains why and how impact investors are achieving leaps of profitability and impact, providing a suite of strategies and solutions for investors who understand that the world of finance has changed. We have the immense opportunity to improve the lives of millions while pursuing stronger financial returns."
Dr. Andrew Kuper, Founder and CEO, LeapFrog Capital; Board Member, Emerging Markets Private Equity Association (EMPEA)

"This global handbook breathes life into a vision for a future that can be financially prosperousas well as provide access to good health, clean water, and a sustainable environment."
Rosemary Addis, AM, Impact Strategist; Ambassador, Global Steering Group for Impact Investment; Senior Strategic Adviser, UNDP

"Financial capitalism needs a second life, and that life is called impact investing. This book is thus a powerful resource for anyone interested in exploring and understanding the brave new world of impact investing."
Dr. Filipe Santos, Chaired Professor of Social Entrepreneurship; Dean, Católica Lisbon School of Business and Economics; Board Member and former Chair, European Venture Philanthropy Association

Inhalt

Foreword by Justin Rockefeller xxxi

Acknowledgments xlv

About the Contributors xlvii

Acronyms and Abbreviations lxi

Introduction 1

Chapter 1 Impact Investing: Innovation or Rebranding? 9
Haifa Ben Abid, MPhil

Introduction 10

Methodology 11

Impact Investing: Clarifying the Concept 13

Types of Impact Investing: Financial-First versus Impact-First 15

Impact Investing: A Response to a Changing Investment Environment 18

Changing Demographics: Investment Practices Among Millennials 18

A Global, Multibillion-Dollar Market 20

Mechanisms for Institutionalization 21

Key Features of Impact Investing 22

Refining the Good Return: Financial and Social Considerations 24

Helping Investors Walk the Walk: Aligning Mission, Values, and Investments 24

A Prudent Entrepreneurial Spirit: Experimentation and Mitigating Risks 25

Impact Investing: Leverage for Development? 25

Conclusion 28

References 29

Chapter 2 Investing for Impact: Socially Motivated Investors and Externalities 37
Raghavan Narayanan, MBA and Stoyan V. Tenev PhD

Introduction 38

A Conceptual Framework for Socially Motivated Investment Behavior 39

Typology of Socially Motivated Investors 43

Impact Investing 52

Conclusion 56

References 58

Chapter 3 Place-Based Impact Investing: Local and Regional Assets for Local and Regional Impact in Globally Diversified Portfolios 61

Introduction 62

Targeting Impact Through Place-Based Impact Investing 66

Constructing Institutional Place-Based Impact Investing Portfolios 71

The Bay Area Model Equity Strategy 74

The US Community Investing Index, by the F. B. Heron Foundation 77

Creating Investable Opportunities for Sustainable and Resilient Communities Through Inclusive Community Engagement 81

Capital Stacks: Financing Local and Regional Projects 88

Global Examples of Place-Based Impact Investing Success 93

Final Remarks and Key Conclusions 98

References 99

Chapter 4 How to Invest in Human Capital: Measuring and Integrating Human Capital Valuation to Realize Higher-Impact Portfolios 103
R. Paul Herman, BSci and Kirstin Dougall, MFA

Why Impact Investors Should Care About Human Capital Valuation 104

Methodology 105

Measuring the Contribution of Human Capital to Returns 106

Human Capital Valuation Methods 107

Investor Methods for Capturing Monetary HCV 109

Th…