A not-for-profit membership association headquartered in Switzerland that serves 580 member firms from 62 countries in global capital markets. Serves as Secretariat for the Green Bond Principles (GBP) and Social Bond Principles (SBP), and Sustainability Bond Guidelines (SBG).

The sister organization of the World Bank and member of the World Bank Group. The largest global development institution focused on the private sector in developing countries.

Impact refers to the causal and meaningful changes in the lives of individuals, communities or the environment that can be attributed to an activity, programme or investment. Impact goes beyond outputs and immediate outcomes to capture longer-term, lasting change.

Impact Analysis is the systematic process of assessing the economic, social and environmental outcomes and the value created by a program, project, investment or policy. Rather than focusing only on “outputs”, Impact Analysis evaluates the changes and long-term effects (outcomes and impact) resulting from implemented actions. The process typically involves tools such as stakeholder analysis, qualitative and quantitative data collection, monitoring frameworks, comparative assessment and validation mechanisms. In the context of impact investing and sustainability, Impact Analysis aims to understand and demonstrate how investments generate measurable and meaningful social, environmental and economic value.

Impact Assessment is a systematic process used to identify, analyse and manage the actual or potential impacts of a policy, project, programme or investment on individuals, communities, society or the environment, before implementation or during delivery. It is primarily designed to inform decision-making, considering both positive and negative effects, and is commonly used as a preventive, guiding or mitigation tool. Impact assessment does not require causal attribution; instead, it places strong emphasis on stakeholder engagement, qualitative analysis, risk–impact considerations and forward-looking judgments. It is typically conducted ex-ante or during implementation.

Impact Assurance is the process by which an organization’s impact data, methodologies, indicators and reported results are independently verified by qualified third parties, in line with recognised professional and international standards. It enhances the credibility, reliability and transparency of impact measurement and reporting, strengthening stakeholder trust in impact claims and performance.

Impact Bonds are outcomes-based financing and contracting models in which private investors provide upfront capital to enable service providers to deliver interventions, while a public authority or donor (the outcome payer) commits to making payments only if pre-defined and independently verified outcomes are achieved. In impact bonds: Payments are linked to outcomes, not activities or outputs, performance risk remains largely with investors until outcomes are achieved, service providers are responsible for implementing interventions to deliver the agreed social or development outcomes. Despite their name, impact bonds are not bonds in the traditional financial sense. They do not offer fixed returns, and investor repayment is entirely contingent on the successful achievement of outcomes. As such, impact bonds are best understood as innovative mechanisms for financing and contracting public services, rather than financial securities. Impact bonds include Social Impact Bonds (SIBs) and Development Impact Bonds (DIBs).

An Impact Chain is the structured representation of the cause-and-effect pathway linking inputs to activities, outputs, outcomes and ultimately long-term impact. It clarifies how change is expected to occur, supports impact measurement and strengthens accountability and strategic decision-making.

Impact Economy refers to an economic system in which financial, social and environmental value are jointly prioritized, and where public institutions, private sector, civil society and investors work together to create positive societal outcomes. In an Impact Economy, capital, business strategies and policies are intentionally directed towards generating measurable positive impact alongside financial performance. The impact economy is not an economic system in which impact investing merely operates, but one in which it is the dominant and defining logic.

Impact Evaluation is a systematic evaluation process conducted after implementation to determine what changes have actually occurred as a result of a programme, project, investment or policy, to assess the extent to which these changes can be attributed to the intervention itself (causality), and to understand what these outcomes mean for stakeholders. Rather than focusing solely on “what was done”, impact evaluation seeks to answer the questions “what changed?”, “for whom did it change?”, “how much did it change?” and “was this change truly caused by the intervention?”. It therefore relies on causal analysis, using a combination of quantitative and qualitative methods, comparative approaches, control or comparison groups, monitoring indicators and verification mechanisms. Impact evaluation is typically conducted ex-post.

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

The ongoing practice of integrating sustainable development and impact considerations into decision-making and practices through strategy, management approach, disclosures, and governance to optimize contributions to sustainable development and the SDGs. This includes setting ambitious impact goals and targets in the context of suitable baselines and thresholds; involving Stakeholders in decision-making; identifying, measuring, valuing, managing, and disclosing relevant impacts; and establishing learning and continuous improvement mechanisms.

An Impact Map is a structured visual framework that illustrates the logical pathway from activities to outputs, outcomes and ultimate impact of a program, project or investment. It often includes stakeholders, inputs, causal links and assumptions, helping clarify how change is created and evidenced.

Impact Materiality refers to the significance of an organisation’s actual or potential impacts on people and the environment, focusing on effects beyond the organisation itself.

Impact Measurement and Management (IMM) is the practice of defining, measuring, tracking and using impact information to inform decision-making and improve social and environmental performance. IMM focuses on managing impact, not only reporting it.

Impact Monitoring is the ongoing, systematic process of tracking a program’s or investment’s performance against defined impact indicators over time. It helps organizations understand progress, identify deviations, support learning and manage impact more effectively.

An Impact Organization is an entity that places social and environmental impact at the core of its mission and operations, defining its success not only through financial performance but also through the positive value it creates for society and the environment. Such organizations intentionally measure, manage and report their impact.

Impact Risk refers to the likelihood that an investment, program or project may not generate the expected social or environmental outcomes, may produce lower-than-anticipated results, may cause unintended negative effects, or may misrepresent its actual impact. Impact Risk can arise from design limitations, implementation challenges, data quality issues, external factors, stakeholder dynamics or measurement inaccuracies. In impact investing, managing impact risk involves strategic planning, robust monitoring, verification and continuous improvement practices.

Impact Strategy is the structured framework that defines how an organization, investor or program will create, manage and sustain its social and environmental impact. It sets out priority impact areas, key stakeholders, outcomes to be achieved, measurement and monitoring approaches, risk management considerations and governance arrangements. A sound Impact Strategy is aligned with institutional objectives, evidence-based and designed for long-term value creation.

Impact targets are specific and measurable social, environmental or development outcomes that an organization, fund or investment aims to achieve, serving as reference points for impact management and performance tracking.

An outcomes-based hypothesis of how an Enterprise, Fund, Issuer, investment, or Investee is expected to contribute positively to sustainable development and the SDGs. The impact thesis may be separate to, but ideally is integrated into, strategy, business models or investment thesis, as applicable.

Impact Valuation refers to the process of evaluating and determining the value of the social, environmental, and economic impacts created by a program, project, investment or policy. It goes beyond identifying impact by aiming to assess the scale, significance, relevance and where possible the monetary value of those impacts on stakeholders. The process typically considers elements such as output–outcome–impact distinction, stakeholder contribution, additionality, causality, measurement indicators and verification approaches. In the context of impact investing, Impact Valuation helps understand, compare and integrate impact performance into decision-making and reporting processes.

The superficial or insincere display of concern for impacts on people and the planet or the exaggeration of impact claims to attract investors or customers.

An Incubator is a structured support mechanism designed to assist early-stage enterprises, social ventures and innovative business ideas during their initial development phase by providing tailored resources and guidance. Support commonly includes training, mentorship, business model development, technical and administrative advisory services, workspace, access to networks and, in some cases, financing or investment readiness support. Within the impact ecosystem, incubators play a key role in strengthening impact-driven initiatives and enabling sustainable and scalable social and environmental solutions.

Indicators are quantitative or qualitative metrics used to measure, monitor and evaluate the performance, outputs, outcomes and impact of a program, project or investment. In impact measurement and management, indicators help demonstrate progress, support learning, inform decision-making and enhance accountability. They may include output indicators, outcome indicators and impact indicators.

Institutional Investors are organizations that manage large pools of capital and invest professionally, such as pension funds, insurance companies, investment funds, asset managers and development finance institutions. They play a crucial role in scaling capital toward impact investments.

A reporting approach that presents an organisation’s financial performance together with its environmental, social and governance (ESG) impacts and its ability to create long-term value in a single, coherent report. Integrated reporting provides a holistic view of the organisation’s business model, strategy, risks and opportunities, stakeholder relationships and value creation across its value chain, combining financial and non-financial information.

Intellectual capital refers to the pool of knowledge-based resources that support an organization’s ability to create value, including intellectual property such as patents, copyrights, software, rights, and licenses, as well as organization-specific knowledge such as tacit knowledge, systems, procedures, and protocols.

Intentionality is the deliberate intention to generate social and environmental impact through an investment or program, and is a defining characteristic of impact investing.

Interdependency refers to the complex and interconnected relationships between environmental, social, and economic systems, as well as the sectors and outcomes within them, whereby actions and decisions in one area influence, and are influenced by, others. In the context of impact management and the SDGs, interdependency highlights that progress in one goal, system, or outcome can generate positive or negative effects across other goals and systems.

A licensed financial institution that intermediates transactions between investors and capital markets by executing buy–sell orders and facilitating the trading of securities. Brokerage firms provide services such as investment advisory, portfolio brokerage, public offerings and derivatives trading, under the regulation and supervision of capital market authorities.

The ISSB is a global standard-setting body that develops consistent, comparable and high-quality sustainability and climate-related disclosure standards to enhance transparency for investors and capital markets.

Intervention refers to a program, policy, investment or set of actions implemented to address a specific social, environmental or economic challenge, and whose outcomes and impacts are evaluated.

An Investee Organisation is an entity that receives investment capital from an investor and is expected to deliver agreed financial, operational and/or impact outcomes. This term is used for commercial companies, social enterprises, cooperatives and impact-oriented organizations."

Investment is the allocation of capital to an asset, project or enterprise with the expectation of generating financial, social or environmental value. Increasingly, investment strategies consider not only financial returns but also broader societal and environmental outcomes.

An Investment Proposal is a formal document submitted by an enterprise, organization or project seeking investment, outlining its business model, financial requirements, revenue structure, growth strategy and intended social/environmental impact. It serves as a primary reference for investors during decision-making processes.

Investment Readiness Programmes are structured support mechanisms designed to help enterprises, including social enterprises and impact-driven organizations, strengthen their business capacity, financial structures, governance and impact management systems in order to attract investment. They typically include mentoring, technical advisory, training, business planning support and preparation for investor engagement.

Provides financial capital to other entities with an expectation of financial and/or impact return.

IRIS / IRIS+ is a globally recognized standardized framework for measuring and reporting impact, developed by the Global Impact Investing Network (GIIN). It provides comparable, credible and consistent indicators to assess social, environmental and economic outcomes of impact investments, while also offering guidance on impact strategies and performance management.

An entity that issues securities such as bonds, notes, or shares in order to raise financing, and that is legally responsible for fulfilling the obligations arising from the issuance, including the repayment of principal and interest and compliance with disclosure requirements. Issuers may include sovereigns, sub-sovereign public entities (such as municipalities or regions), supranational organizations, corporations, financial institutions, and special purpose entities.