Tideline Guide - what differentiates impact investing?
Updated: Aug 23, 2022
What separates impact investing from other forms of investment?
Tideline's Truth in Impact: A Tideline Guide to Using the Impact Investment Label, compares and contrasts different approaches to sustainable investing.
From the NZ NAB's (National Advisory Board for Impact Investing) perspective, we believe that impact investing is a distinct type of investment approach, required to drive positive social and environmental outcomes in New Zealand’s economy and society.
Here are some thoughts shared by members at an event hosted by the Impact Investing Network when asked, What is the difference between impact investing and sustainable finance?
Tideline's guides doesn't completely capture impact investing in the current New Zealand context. However, it's an accessible guide to help navigate the emerging terms and types of sustainable investing, used globally and in New Zealand, and the factors that differentiate impact investing.
Tideline's guide shows that 'impact investments' should only use this label if there is evidence that combines high levels of Intentionality, Measurement and Contribution.
In particular, we believe the focus on intentionality and measurement are necessary to be considered impact investments.
The NAB is currently leading a process to produce one or more position papers, to include a New Zealand perspective on impact investing including measurement and monetisation. These will be released through the Impact Investing Network communication channels.