Impact investing is different from traditional investment. It has dual objectives of both financial and impact returns. The types of investment that impact funds or funds incorporating impact make are different and need to be sourced, screened and reviewed differently. This section provides guidance on how to do that focusing both on general principles as well as more detailed processes that you might want to use.

How to use these resources

Managing impact investments well requires the construction of portfolios that align with the impact investment thesis and where the assets have been selected to build a portfolio with the appropriate risk/return profile – both from a financial and an impact perspective. Start with the reading on planning, mapping and screening and then move onto the readings on deal sourcing and fund manager selection before getting stuck into the readings on due diligence (one brief, two longer and rooted in experience).

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Screening and suitability – how to identify true impact investing opportunities (spot “green washing”), source them and assess their suitability 

Due diligence mechanisms and challenges