Situated at the intersection of blended finance, impact investing, and results-based finance, impact-linked finance is a new social investment approach that links financial rewards for market-based organizations to the achievements of positive social outcomes, thereby improving the risk-return profile of investments. Applications of impact-linked finance have been piloted in several sectors, showing strong early success.
This panel will explore the promise of impact-linked finance and provide real-world examples of its application, including Social Impact Incentives (SIINC). Representatives from the donor, innovative finance, and impact investing communities will present perspectives from their use of impact-linked finance to increase the effective use of public funds to leverage catalytic private capital to scale high-impact enterprises and innovations. The panel will also present future directions for impact-linked finance that participants can explore in their own work.