Meeting the Challenge of Impact Investing: How Can Contracting Practices Secure Social Impact Without Sacrificing Performance?

This article addresses the challenge of securing social impact in impact investing while maintaining financial performance. It explores how contracting practices can be designed to align the dual objectives of social and financial returns. The author analyses various contractual mechanisms and their effectiveness in ensuring accountability for social outcomes without compromising financial viability. The paper provides insights into structuring agreements that incentivize impact delivery and manage risks within the social finance landscape.