ELSA DE MORAIS SARMENTO is an Associate Researcher at NOVAFRICA at Nova Business School of Management and Economics. She co-edited The Emerald Handbook of Public Private Partnerships in Developing and Emerging Economies.

R. PAUL HERMAN is CEO of HIP (Human Impact + Profit) Investor Ratings and Portfolios and has served as faculty at business schools around the world. He is author of The HIP Investor: Make Bigger Profits by Building a Better World.

Foreword by Justin Rockefeller xxxi Acknowledgments xlv About the Contributors xlvii Acronyms and Abbreviations lxi Introduction 1 Chapter 1 Impact Investing: Innovation or Rebranding? 9Haifa Ben Abid, MPhil Introduction 10 Methodology 11 Impact Investing: Clarifying the Concept 13 Types of Impact Investing: Financial-First versus Impact-First 15 Impact Investing: A Response to a Changing Investment Environment 18 Changing Demographics: Investment Practices Among Millennials 18 A Global, Multibillion-Dollar Market 20 Mechanisms for Institutionalization 21 Key Features of Impact Investing 22 Refining the "Good" Return: Financial and Social Considerations 24 Helping Investors "Walk the Walk": Aligning Mission, Values, and Investments 24 A Prudent Entrepreneurial Spirit: Experimentation and Mitigating Risks 25 Impact Investing: Leverage for Development? 25 Conclusion 28 References 29 Chapter 2 Investing for Impact: Socially Motivated Investors and Externalities 37Raghavan Narayanan, MBA and Stoyan V. Tenev PhD Introduction 38 A Conceptual Framework for Socially Motivated Investment Behavior 39 Typology of Socially Motivated Investors 43 Impact Investing 52 Conclusion 56 References 58 Chapter 3 Place-Based Impact Investing: Local and Regional Assets for Local and Regional Impact in Globally Diversified Portfolios 61 Introduction 62 Targeting Impact Through Place-Based Impact Investing 66 Constructing Institutional Place-Based Impact Investing Portfolios 71 The Bay Area Model Equity Strategy 74 The US Community Investing Index, by the F. B. Heron Foundation 77 Creating Investable Opportunities for Sustainable and Resilient Communities Through Inclusive Community Engagement 81 Capital Stacks: Financing Local and Regional Projects 88 Global Examples of Place-Based Impact Investing Success 93 Final Remarks and Key Conclusions 98 References 99 Chapter 4 How to Invest in Human Capital: Measuring and Integrating Human Capital Valuation to Realize Higher-Impact Portfolios 103R. Paul Herman, BSci and Kirstin Dougall, MFA Why Impact Investors Should Care About Human Capital Valuation 104 Methodology 105 Measuring the Contribution of Human Capital to Returns 106 Human Capital Valuation Methods 107 Investor Methods for Capturing Monetary HCV 109 The Heritage of Monetary Human Capital Valuation Methods 109 Investment Strategies Using Monetary HCV 110 Non-Monetary Human Capital Valuation for Impact Investors 111 Exemplary Ratings Systems That Feature Human Capital Valuation 111 Non-Monetary Human Capital Metrics That Impact Investors Can Use in Custom Analyses 112 Employee Participation 114 Incorporating Data from Human Resources Management Systems 115 Standards for Human Capital Valuation 115 Integrating Human Capital into the Investment Process 118 Examples of Human Capital Valuation Applied in Impact Investing 118 Examples: Monetary Human Capital Valuation in Action 119 Monetary HCV Example: Asian Company "BroadTek" Uses Human Capital Financial Statements to Calculate Returns on Workforce Investments 119 Monetary HCV Example: Global Technology Company Infosys Uses Present Value of Compensation Method to Calculate Returns on Workforce Investments 119 Example: Being a Global "Great Place to Work®" Creates Higher Growth 122 Non-Monetary HCV Example: Indian Company HCL Technologies' "Employees First, Customers Second" Initiative Leads to Higher Growth and Economic Resilience 123 Examples: Using Standards to Assess Whether Companies Value Human Capital 123 HCV Standards Example: How Novartis Used the "Social and Human Capital Protocol" to Calculate the Economic Value of Improving Health Across Africa 125 HCV Standards Example: French Automaker Groupe PSA Demonstrates How Human Capital Contributes to Their Value Chain Using the International Integrated Reporting Framework 125 HCV Standards Example: Managers of Australian Retirement Fund Assess and Adjust Holdings Using GRI Human Capital Guidelines 126 Stock Indexes and Funds Built on Human Capital Metrics 128 Looking Forward: New Human Capital Valuation Reporting Will Make Impact Investing Easier 130 An Investor's Action Plan for Human Capital Valuation 131 Conclusion 133 Further Reading for Impact Investors 134 References 135 Appendix 4.1: Experts Interviewed 141 Appendix 4.2: Human Capital Management Institute Monetary Human Capital Valuation Formulas 142 Appendix 4.3: Human Capital Valuation Ratings Systems 143 Appendix 4.4: Human Resource Metrics and Where to Find Them 146 Chapter 5 Leadership by Results for Impact Investors and Investees 147Rajen Makhijani, MBA Introduction 148 The Impact Sector Underinvests in Leaders 151 The "Leadership by Results" Approach 154 Three Practical Frameworks and an Example 168 Translation of Goal Achievements into Returns on Investment 181 Conclusion 190 References 192 Chapter 6 Gender Lens Investing: Co-Creating Critical Knowledge to Build a Credible, Durable Field 195Edward T. Jackson, OMC, EdD and Elsa de Morais Sarmento, MA Introduction 196 Gender Lens Investing: Evolving Definitions 198 A Professional Field with Visibility, Force, and Momentum 201 Building a Larger, More Robust Field: Five Scaling Strategies 202 Deepening the Empirical Knowledge Base: Four Themes 207 Constructing a GLI Research Agenda Through 2030 216 Impact Investing Community-University Research Partnerships 220 Final Remarks 223 References 225 Chapter 7 Investing with a Gender Lens: Uncovering Alpha Previously Overlooked 233Kristin Hull, PhD Introduction 234 Gender Lens Investing: Definitions, History, and Potential for a Growing Movement 236 Factors Driving Investors to Adopt a Gender Lens 243 Female Asset Managers Outperforming 244 Women at the Top 246 Board Representation 247 Women Founders and Women-Led Startups 248 How Impact Investors Can Pursue Gender Investing 250 Gender Lens Cash Equivalents and Short-Term Notes 254 Gender Lens Public Fixed Income 254 Gender Lens Fixed Income 255 Gender Lens Private Debt 255 Gender Lens Public Equities 256 Gender Lens Global Equities 257 Gender Lens Private Equity 258 Startup Ventures with a Gender Lens 258 Private Equity and Venture Capital Funds 258 Fund of Funds 260 The Importance of an Investment Policy Statement for Gender Lens Investing 260 Conclusion 263 References 265 Appendix 7.1: Resources 271 Chapter 8 Gender Lens Investing in the African Context 273Michael Z. Ngoasong, PhD and Richmond O. Lamptey, PhD Introduction 274 Methodology 276 Why Gender Lens Investing in Africa Matters 279 Adopting Gender Lens Investing 281 The Practice of Gender Lens Investing in Africa 283 Discussion 295 Conclusion 296 Recommendations 297 References 299 Chapter 9 The Evolution from Gender-Focused Microfinance to Gender Lens Investing in Latin America: The Case of Pro Mujer 303Angélica Rotondaro, PhD, Maria Cavalcanti, MBA, MS and Carmen Correa, BS Introduction: Building the Business Case for Gender Lens Investing in Latin America 304 Gender Lens Investing in Latin America and Beyond: Backstage Highlights 306 Pro Mujer's Gender Lens Investing Process 310 Pro Mujer's Gender Lens Investing and Scorecard 314 Ilu Women's Empowerment Fund GLI Scorecard 316 Unite to Conquer: The Crucial Role of Partnerships for Leveraging Catalytic Capital for Gender Lens Investing in Latin America 319 Key Learnings and Recommendations 323 The Way Ahead 329 References 330 Chapter 10 Inclusive Investing: Impact Meets Diversity, Equity, and Inclusion 333Julianne Zimmerman, MSci, Edward Dugger III, MPA-UP, and Shijiro Ochirbat, MBA, MPA Introduction: "DEI" Is Not an Asset Class 334 Aligning Purpose with Evidence and Practice 336 Inclusive Investing Methodology: Adapting the Scope 1, 2, 3 Approach to Assess Who Are the People in Your Portfolio? 343 Inclusive Investing in Practice: UNC Ventures 350 How to Begin: Determine What Is Material and Relevant 354 Conclusion 359 References 360 Appendix 10.1: Starting Examples of Communities of Practice and Knowledge-Sharing Platforms 366 Appendix 10.2: Additional Resources for Further Exploration 368 Chapter 11 Investing for Impact in Employee Retirement Plans 371Megan E. Morrice, MBA Introduction 372 Retirement Plans Demand and Types 374 Regulation in the United States, United Kingdom, and European Union 380 Creating Successful Retirement Savings Plans 392 Benefits of Successful Sustainable Retirement Savings Plan 398 How a Retirement Plan Can Become More Sustainable 399 Get Educated on Sustainable Investing 400 Engage Employees Through Their Retirement Plans 400 Prepare for Inspired Incremental Change 401 Educate Participants with Managerial Support 402 Research and Prepare 402 Talk to Colleagues and Build Consensus 403 Identify Who to Approach 403 Approach with Potential Solutions 403 Conclusion 404 References 405 Appendix 11.1: Experts Interviewed 411 Chapter 12 Fossil-Fuel-Free Investing: Weaving a New Investment Paradigm 413Umachander Balakumar, MSci Introduction 414 China: Lessons from the Biggest Polluter and Biggest Green Energy Market Maker 417 Metrics 419 Building a Fossil-Fuel-Free Portfolio 428 Private Equity (PE) 441 Hedge Funds 444 Commodities 446 Real Estate 448 Public Debt 449 Green Bonds 449 Cryptocurrency 451 Final Remarks 452 References 455 Appendix 12.1: Experts Interviewed 459 Appendix 12.2: Fossil-Fuel-Free Topics and Information 459 Chapter 13 The Role of Transition Finance Instruments in Bridging the Climate Finance Gap 461Pauline Deschryver, MSci, MPA and Frederic de Mariz, PhD Introduction 462 An Overview of Green Finance 465 Green Bond Certification: Growing Diversity Toward Transparency and Integrity 469 Green Bond Issuances Are Not Large Enough for Most Investors 470 Lack of Standardization in the Green Bond Market Threatens Integrity of Label 471 Reputational Risks Scare off Issuers and Investors Alike 472 The Sustainable Finance Market Stands to Benefit from the Development of Transition Finance 473 Existing Frameworks for Transition Bonds 475 Issuance of Transition Bonds 482 Conclusion 490...