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What is impact investing?

Investment made with the intention to generate positive, measurable social or environmental impact alongside a financial return.

Impact investing directs capital to projects and organisations that create positive change in society or the environment, with an explicit commitment to measure and report that change, and a financial return ranging from capital preservation to market rate depending on the opportunity.

Impact is the ultimate change in beneficiaries' lives, measured by indicators that have a definition, unit, baseline, target, data source and measurement frequency.

Four characteristics

01

Intentionality

A clear, stated intent to create positive impact, not incidental impact.

02

Evidence & data

Investment design grounded in evidence about the problem and the solution.

03

Impact management

Tracking indicators and managing social performance as rigorously as financials.

04

Contribution to the sector

Sharing lessons and practices to grow impact investing.

International networks

The platform's methodology aligns with widely used global impact-investing practices, adapted to the Saudi context.

  • GIIN — Global Impact Investing Network

    Definitions and characteristics of impact investing and the IRIS+ indicator system.

  • Impact Management Project (IMP)

    Five dimensions of impact: what, who, how much, contribution, risk.

  • Sustainable Development Goals (SDGs)

    Linking every opportunity to one or more of the 17 goals.

  • Operating Principles for Impact Management

    Operating principles for managing impact through the investment cycle.