Authored by Benoit Passot, nef consulting today published a short report which shows how achieving financial and social returns can be made more effective. (Download the press release).

New economics for impact investing explores the theoretical underpinnings of impact investing and social enterprise – investments and businesses that are managed to produce both financial returns and social and environmental impact.

At at time when businesses are under increasing pressure to demonstrate and maximise the social and environmental impact of their operations and activities, we debunk the idea that if businesses are best at profit, and charities best at impact, we should let them specialise in what they each do best. Business in the Community has provided a Foreword for the UK report, while Nexii has provided a Foreword for the US version.

The sustainability agenda is not a simple "win-win". We explain in accessible language how businesses, trusts, funds and charities can navigate the potential trade-off between making money and achieving impact. The report concludes with five implications: showing how impact investors, philanthropic funds, and businesses, can put new economics into action.

New economics for impact investing will be relevant for professionals:

• in the finance sector, interested in the economic theory behind the emerging field of impact investing.
• in the social sector, interested in attracting new funding sources to create social impact.
• involved in managing assets and partnerships to achieve socially responsible returns.
• who pursue the measurement of social value (like nef consulting).

Download the Press Release

Download the report here.