Impact investing can be defined as “investments made into companies, organizations, vehicles and funds with the intent to contribute to measurable positive social, economic and environmental impact alongside financial returns.”
Impact investing adds a second objective to managing an investment portfolio. In addition to aiming for financial returns, the impact investor also aims to achieve positive impact on targeted social, economic, or environmental goals.
IFC’s Operating Principles for Impact Management describe the essential features of managing investment funds with the intent to contribute to measurable positive social or environmental impact, alongside financial returns. This goes beyond asset selection that aligns investment portfolios with impact goals (for example, the SDGs), to requiring a robust investment thesis of how the investment contributes to the achievement of impact.
Capria has been practicing impact management since its inception in 2015 and now has joined 59 other investors to adopt the Operating Principles for Impact Management – a newly built market standard for investors who aim to generate positive impact along with strong financial returns in a disciplined and transparent way.
Capria Quantum is a comprehensive capabilities evaluation tool that benchmarks impact investors across eight categories and nearly 100 sub-categories. The findings can be used to develop a plan with corresponding actions that will accelerate an investment firm’s growth and overall capability. The tool is based on Capria Partners’ 40+ years of experience in investing both in Silicon Valley and in global emerging markets. It further integrates the learnings from Capria’s continuous evaluation of more than 600 fund managers from around the world.