week 1

Question 1

What is impact investing?

Answer 1

Investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.

Question 2

What does SDG aligned mean in the context of impact investing?

Answer 2

It means that the company should derive at least 50% of their revenues form activities that are in line with one of the Sustainable Development Goals

Question 3

What are the four components of the theory of change?

Answer 3

Inputs, outputs, outcomes and impact.

Question 4

What are inputs in the theory of change?

Answer 4

Resources invested in the project, such as capital, time and materials.

Question 5

What are outputs in a theory of change?

Answer 5

Direct products or services resulting from the investment such as infrastructure or programs.

Question 6

What are outcomes in a theory of change?

Answer 6

Changes or benefits resulting from the outputs, such as improved internet quality or reduced unemployment

Question 7

What is impact in a theory of change?

Answer 7

Long-term changes or benefits, such as economic growth or reduced inequalities.

Question 8

What is an example of an investment oportunity in impact investing?

Answer 8

Investing in a fiber-optic network company to improve internet quality in rural areas, contributing to SDG 8 and SDG 10.

Question 9

What are social impact bonds (SIB)?

Answer 9

A contract with the public sector fin which it pays for improved social outcomes that result in public sector savings.

Question 10

What are the different players involved in a social impact bond?

Answer 10

Government, service providers and investors.

Question 11

What role does the government play in a social impact bond?

Answer 11

Provides the intitial funding and sets social goals.

Question 12

What role do service providers play in a social impact bond?

Answer 12

Implemnt proframs to achieve social outcoms.

Question 13

What role do investors play in a social impact bond?

Answer 13

Provide upfront capital and are repaid based on the achievement of outcomes.

Question 14

What is additionality in impact investing?

Answer 14

The added value that an impact investment brings beyond what would have occured without the investment. (marginal revenue)

Question 15

What is deadweight in the contect of additionality?

Answer 15

Outcomes that would have happened anyway without the investment.

Question 16

What is leakage in the context of additionality?

Answer 16

Benefits that spill over to unintended areas or populations.

Question 17

What is displacement in the context of additionality?

Answer 17

Negative effects on other areas due to the investment.

Question 18

What is drop-off in the context of additionality?

Answer 18

Diminishing impact over time.

Question 19

What is attribution in the context of additionality?

Answer 19

Determining the extent to which the investment caused the observed outcomes.

Question 20

What is the purpose of conducting due diligence in impact investing?

Answer 20

To assess the viability and potential impact of an investment.

Question 21

What are the challenges of including impact in the due diligence process?

Answer 21

Measuring the impact and balancing financial returns with social outcomes.

Question 22

WHat are hte determinants of the intesnsity of due diligence in impact investing?

Answer 22

Size and type of investment, risk profile and expected social impact.

Question 23

What investment approach did Floyd Davis Finance discuss in their guest lcture?

Answer 23

Whether to invest in a fund or directly into companies.

Question 24

What did WIre Group discuss about their investment strategy?

Answer 24

The pros and cons of investing in funds versus directly into copmanies/

Question 25

What is the debate about impact investing as an asset class versus and investing discipline?

Answer 25

Whether impact investing should be treated as an asset or as an discipline within broader investing strategies.