Monetizing Impact: Building an economic system for a sustainable future

By monetizing impact – tying financial value to positive social and environmental outcomes – we have seen its transformational potential start to become reality.

Financial markets fail to reward solutions that create long-term social and environmental value, prioritizing short-term financial gains instead. Various mechanisms, such as impact-linked financing, carbon credits, and results-based financing, have emerged to tie financial value to positive impact, but challenges remain, including high entry costs for early-stage companies and insufficient demand from funders and corporations. To scale these solutions, funders and investors need to reduce participation barriers, build market infrastructure, and develop financial incentives that align economic success with sustainability goals.