We believe that rigorous quality standards as well as strong result-orientation are needed to design effective financing solutions for international development and social innovation.
At Roots of Impact, we are committed to the UN Principles for Positive Impact Finance and the OECD DAC Blended Finance Principles for Unlocking Commercial Finance for the SDGs. In addition to these guidelines, we apply our own principles for designing effective solutions for impact finance:
- Before we start designing financing solutions, we have to understand how social and economic value is created for whom and how this might be affected by different forms and terms of financing.
- Positive social and environmental impact created by impact-oriented organizations cannot be presumed. Impact should be considered as a performance that can be assessed, managed and optimized.
- Financing solutions for impact oriented organizations, funds and projects have to fairly balance risks and returns and provide aligned incentives for the major stakeholders in terms of social and economic value.