We are thrilled to announce the release of the Social Investment Framework, which was developed through a collaborative effort between Accelerating Impact and LuxFLAG and marks a significant milestone in the field of social impact investing. The Social Investment Framework is the result of an extensive research process and a collaborative approach with practitioners. It aims to provide a clear and comprehensive definition of social impact investing, map out eligible activities, and nurture the financing of social impact finance activities. The results of the study, built from a comprehensive review of existing literature and frameworks, were consolidated by the collaboration of practitioners to ensure practical applicability and theoretical soundness. This initiative is designed to support investment products that focus on achieving measurable social outcomes alongside financial returns.
Key highlights of the Social Investment Framework include:
- A Shared Definition: The framework offers a clear definition of social impact investing, emphasizing the importance of generating substantial positive impact while avoiding or mitigating negative impacts, proposing a non-exhaustive list of eligible activities.
- Eligible activities: the framework draws an open and evolutive list of activities related to themes such as promoting decent work, adequate living standards, and inclusive and sustainable communities.
- Exclusions and Safeguards: It also includes a suggested list of excluded activities and minimum safeguards to ensure adherence to social and environmental standards. These measures are designed to prevent potential negative impacts and promote responsible investing practices.
The framework also emphasizes the deep correlations between key concepts: “Intentionality”, which is the intention to achieve substantial positive impact, implying that the service/activity is truly transformative, with a “Substantial Impact”, applicable to a “Target Population”.
This framework is expected to drive greater alignment of capital flows with social objectives, fostering the growth and legitimacy of the social investing ecosystem. By setting clear standards and providing meaningful recognition, the Social Investment Framework aims to encourage more investors to allocate portions of their portfolios to impact investments.
We invite you to explore the full details of the Social Investment Framework.
For more information, visit our website or get in touch with us directly: contact@acceleratingimpact.org.
