The Organization for Economic Co-operation and Development (OECD) is an international organization that works to build better policies for better lives. Social impact investment (SII), the provision of finance to organizations addressing social needs with the explicit expectation of a measurable social, as well as financial return. New approaches are needed for addressing social and economic challenges. The 2019 OECD publication Social Impact Investment brought new evidence on the role of SII in financing sustainable development and provided recommendations for delivering on the “impact imperative” of financing sustainable development.
Social impact investing provides finance to organizations addressing social and/or environmental needs with the explicit expectation of a measurable social, as well as financial, return. It thus aims to foster economic development while achieving social outcomes. It is one way of channeling more resources towards the Sustainable Development Goals (SDGs).
