CHAPTER 6

Impact Measurement and Reporting

Impact investing requires an intention to generate social and environmental impact alongside a financial return, which means that impact investors must have a means for identify and measuring “impact” and reporting on the results of their efforts to the ultimate owners of the assets that are being invested. One of the challenges with the evolution of impact investing has been developing reliable and consistent measures and ratings of performance (i.e., environmental and/or social impact) for individual projects and the overall progress of enterprises with respect to environmental, social, and governance (ESG) criteria. A number of ESG ratings schemes have emerged and companies have been provided with ...

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