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 14 names in this directory beginning with the letter T.
T
Tailored and Flexible Finance
Tailored and Flexible Finance refers to a financing approach in which terms and structures are deliberately designed and adjusted to the objectives, risk–return profile and needs of projects or beneficiaries. It is often used to better support social and environmental outcomes by providing flexibility in repayment schedules, returns, risk-sharing mechanisms and financial structures.
Technical Assistance
Technical Assistance refers to support provided to strengthen the capacity of organisations, projects or countries, including the provision of expert advice, training, consultancy services and knowledge transfer.
Technology Transfer
Technology Transfer refers to the systematic process through which knowledge, technologies, processes or innovations are transferred and applied from one organisation, sector or country to another. In the context of climate action and sustainable development, technology transfer plays a critical role in scaling innovative solutions and amplifying impact
The Global North
The Global North refers to countries that, due to historical, economic, and socio-political factors, generally have higher income levels, advanced industrial development, and stronger institutional capacity. It typically includes countries in North America, Western Europe, Japan, Australia, and New Zealand. In the context of impact investing, the Global North represents regions where capital, technology, and institutional expertise are concentrated and from which a significant share of global impact finance flows originate and are directed.
The Global South
The Global South refers to countries that are generally categorized as developing or emerging economies, often facing structural development challenges, and largely located in Latin America, Africa, the Middle East and parts of Asia. In the impact ecosystem, the Global South represents regions with significant development needs and high impact potential.
The Paris Agreement
The Paris Agreement is an international, legally binding treaty adopted in 2015 at the United Nations Climate Change Conference (COP21) in Paris. The Agreement aims to limit the increase in global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C. It also provides the overarching framework for global climate action, including emissions reduction, strengthening climate adaptation capacity and scaling up climate finance.
Theory of Change (ToC)
A conceptual framework that explains how and through which steps an intervention, programme, project or investment leads to the desired social, environmental or economic impact. The Theory of Change clarifies the causal links between inputs, activities, outputs, outcomes and impact, while also identifying assumptions, risks and enabling conditions. It supports more systematic planning, implementation, monitoring and evaluation.
Third Sector
The Third Sector refers to the sphere of activity that operates independently of the public and private sectors and encompasses non-profit, voluntary and civil society organisations. The primary purpose of the third sector is to create social benefit rather than generate profit. The third sector includes civil society organisations (CSOs), non-governmental organisations (NGOs), associations, foundations, voluntary organisations, and in some cases certain social enterprises and social initiatives that prioritise public benefit.
Threshold
A threshold refers to the acceptable range or limit for an outcome or level of performance, as defined by scientific targets, societal norms or the Sustainable Development Goals (SDGs). Performance outside this range is considered negative or unsustainable, while performance within the range is considered positive or sustainable.
Trade-offs
Quantitative (not necessarily monetary) comparison of impacts, all of which are not attainable at the same time, informed by stakeholder preferences and the sustainable development context.
Transition (or Sustainable-improving) Investment
Transition Investment refers to investments directed toward sectors, organizations or projects that are in the process of transitioning toward more sustainable, low-carbon and impact-oriented models, even if they are not fully sustainable yet. The goal is to provide the capital and support necessary for transformation, enabling improved ESG performance, resilience and long-term positive impact.
Transition Plans
Transition Plans are strategic roadmaps that outline how organisations will align their business models, investments and operations with the transition to a low-carbon, climate-resilient and sustainable economy.
Transition Risks
Transition Risks; result from the shift to a low-carbon economy, including policy, regulatory, technological, market and reputational risks.