Glossary
This glossary has been developed to establish a shared conceptual foundation for all stakeholders operating in the fields of impact investing and the impact economy.
Impact investing, impact measurement and management, outcomes-based financing, and related concepts—which are increasingly used across finance, public policy, entrepreneurship, and social impact—are explained with reference to international frameworks while taking the Turkish context into account.
The aim is to create a consistent terminology across disciplines, reduce conceptual ambiguity encountered in practice, and support the wider adoption of impact-oriented approaches.
EYDK Dictionary
There are currently 12 names in this directory beginning with the letter R.
R
Real Assets
Real Assets are tangible, physical assets that hold intrinsic value and are typically associated with long-term investment. They include real estate, infrastructure, energy facilities, natural resources, agricultural land and other physical production assets. In the context of impact investing, real assets often encompass renewable energy projects, sustainable infrastructure, environmental conservation assets and socially beneficial developments that generate both financial returns and measurable social and environmental outcomes.
Recoverable Grants (or convertible grants)
Recoverable Grants are grants initially provided as non-repayable funding but may become repayable partially or fully if the funded initiative achieves agreed financial performance, sustainability milestones or measurable impact outcomes. If objectives are not met, repayment may not be required or more flexible terms may apply. This mechanism ensures that philanthropic or catalytic capital can be recycled, strengthens accountability and supports the creation of a more sustainable impact finance ecosystem.
Redeemable Share
A Redeemable Share is an equity instrument that can be bought back by the issuing entity under predefined conditions, such as after a specified period or upon meeting certain financial or performance criteria. In the context of impact investing, redeemable shares are used as hybrid financing instruments that provide investors with a planned and limited exit option, while enabling investee organizations to preserve mission alignment and long-term impact objectives. Redemption terms may be linked to financial capacity, cash flows, or agreed performance milestones and do not necessarily guarantee fixed returns.
Responsible Investment
Responsible Investment is an investment approach that integrates Environmental, Social and Governance (ESG) factors into investment analysis and decision-making alongside financial considerations to promote more sustainable capital allocation.
Result-Based Financing
Results-based financing (RBF) approaches tie payment to the achievement of pre-specified objectives. In some forms of RBF, payment is tied to outputs, such as completion of an activity.
Retail Investors
Retail Investors are individual investors who buy securities or make investments for their personal accounts rather than on behalf of institutions.
Return on Investment (ROI)
Return on Investment (ROI) is a performance metric that measures the financial gain or value generated relative to the cost of an investment. It helps determine how efficiently capital has been used and enables comparison between different investment options. In the context of impact investing, ROI is also considered alongside social and environmental value, highlighting the need for a broader perspective than purely financial performance.
Revenue Sharing Agreements
Revenue Sharing Agreements are contractual arrangements that define how revenues generated from a project, investment or business model are distributed among multiple parties based on predetermined terms and ratios. These agreements aim to create a fair allocation of risk and return, enhance financial flexibility and strengthen long-term sustainability. In the context of impact investing, revenue sharing agreements are often used in social enterprises, impact-driven initiatives and public–private partnerships to ensure that financial returns support sustainable social and environmental outcomes.
Risk Appetite
The willingness of the entity and Stakeholders to accept risk in pursuit of certain outcomes or objectives, before requiring measures to be taken to reduce or mitigate the risk.
Risk Based
Taking into account the likelihood and magnitude of risk when making decisions, including deciding how much information is sufficient to make a decision, and when impact data or performance should be assured.
Risk Tolerance
The entity’s and Stakeholders’ willingness to withstand variability in outcomes or outcomes that differ from what is expected.
Risk-Adjusted Return
Risk-Adjusted Return refers to the evaluation of an investment’s return in relation to the level of risk taken to achieve that return. Rather than focusing on absolute performance, it assesses how efficiently returns are generated given the associated risks. In impact investing, risk-adjusted return analysis considers financial, operational, policy and impact-related risks to enable more meaningful comparison across investment opportunities.