Guest blog: In defining 'impact investment', the IFC helps illuminate the broader responsible finance universe
"This article first appeared in the RFI Foundation's weekly newsletter " A feature of the responsible finance market for as long as it has existed has been the overlapping and diverse range of what is meant by ‘responsible’ and how it translates (or diverges) between one context and another. A recent report by the International Finance Corporation (IFC) does a remarkable job of providing an overarching framework for how to understand responsible finance, in a way that is highly consistent with how the RFI Foundation defines it. The consistency between the IFC’s narrow focus on impact vs. no impact and RFI’s umbrella term lies in the perspective applied: from the financial sector rather than what it invests in. RFI includes as ‘responsible’ all of the following: socially responsible investing (SRI); environmental, social and governance (ESG); Islamic finance; and impact investment. The IFC more narrowly defines ‘impact investing’ as: “Investments made into companie...