Latimpacto will launch on February 22nd the first study that provides the first overview of investing for impact in Latin America and its different actors, including impact investing funds, foundations, universities, business, family offices and their intermediaries. The study details how these actors put investing for impact into practice and it identifies a variety of best practices.
Investing for impact represents an opportunity with which to face the region’s challenges and to connect with global conversations that is essential for building a common future, such as strategic philanthropy, impact investing, the Principles of Responsible Investment, compliance of Environmental, Social and Governance (ESG) criteria, and measuring the impact of social and environmental interventions.
“For Latimpacto, it is a great pleasure to provide the first investing for impact study at the service of our community. This study analyzes 37 cases from 7 Latin American countries and allows us to have a better understanding of how they are approaching investing for impact. The study will allow us to learn about trends regarding which instruments countries are using to support social purpose organizations, what type of non-financial support is being provided so that the deployment of capital is more effective and catalytic, how impact is being measured and managed, and how social investors are generating greater resilience among social organizations during the pandemic”, says Carolina Suárez Visbal, CEO of Latimpacto.
Some of the lessons learned from this study on social investment and impact are that: 73% of the 37 cases have a defined theory of change that turns into good practice by allowing better impact measurment. Another insight is that 25% of the participating organizations already use hybrid financing instruments, while other foundations already using other types of financial instruments other than donations. The study also allow us to see the challenges in managing and measuring impact in projects. The study allows us to address these trends and challenges, learn from them, and implement strategies that allow us to mobilize greater capital aimed at creating social and environmental impact. The study can be found at: ecosystem.latimpacto.org