Impact Investing Must Balance Values, Returns and Scale, Say Experts
Collaboration, Measurable Outcomes, and Innovation Key to Driving Sustainable Impact
Building scalable, sustainable solutions through impact investing requires a balance of values, financial returns, and measurable outcomes, agreed experts at a panel discussion on “Impact Investing: Aligning Values with Financial Returns.” The conversation explored how innovation, collaboration, and accountability are reshaping the landscape of impact investing to solve pressing global challenges.
The session highlighted that impact investing is no longer limited to philanthropy but has become an essential driver of sustainable change.
Creating Sustainability Through Incentives
Priyanka Sharma, Head – Programs and Partnerships, Mobius Foundation, stressed the importance of aligning incentives to sustain long-term impact. Sharing insights on renewable energy initiatives, she explained, “We are partnering with the National Dairy Development Board to install 5,000 household biogas plants. By linking incentives such as carbon credits, we ensure that these plants remain operational, benefitting both farmers and the environment.” Sharma also spoke about building sustainability education curriculums and leadership programs for forestry graduates to address environmental challenges.
Innovative Financing Models For Impact
Kartikeya N. Desai, CEO, Desai and Associates, highlighted the need for innovative financing mechanisms to de-risk investments and ensure scalability. “By threading capital across sectors and collaborating with funders, we can build scalable business models,” he said. Desai shared examples of their work in scaling Self-Help Groups (SHGs) and creating affordable debt models for Water, Sanitation, and Hygiene (WASH) enterprises. He noted that outcome-based financing would play a key role in ensuring measurable impact.
Profit Driven Impact For Scale
Shailesh Vickram Singh, Founder, Climate Angels Fund, underscored the importance of profit-driven scalability in sectors like renewable energy. “Revenue directly aligns with impact. If a business scales, its environmental impact grows exponentially—there’s no need for separate measurement,” he stated. Singh emphasised that clarity of purpose, whether focused on profit or impact, ensures businesses remain aligned and committed to achieving their goals.
Long Term Capacity Building
Archish Gupta, Investment Manager, LGT Venture Philanthropy, differentiated venture philanthropy from traditional models of impact investing. He explained that their focus lies in building long-term organisational capacity. “We fund areas like technology, leadership, and monitoring to ensure scalability. Success is measured not by immediate returns but by how effectively the organisation grows its impact,” he said. Gupta cited the example of Educate Girls, which expanded from two districts to over 40,000 villages through Development Impact Bonds.
The Need For Accountability and Impact Measurement
Aditi Attrey, Manager, Deloitte India’s Social Impact Practice, highlighted the critical role of accountability and data-driven frameworks. “Early adoption of frameworks like SROI (Social Return on Investment) ensures transparency and builds trust among funders and stakeholders,” she noted. Attrey urged organisations to implement pay-for-performance models and other innovative instruments to attract more capital while ensuring measurable impact.
Collaboration: The Path Forward
The discussion concluded with a consensus that collaboration is vital for scaling impact. Stakeholders—investors, implementing partners, and governments—must work together to simplify financial models and create user-centric solutions.
Moderating the session, Ramkumar Venkatramani, South Asia Director – Impact Investing, AVPN, summarised the key takeaway: “Impact investing requires an alignment of values, financial capital, and measurable outcomes. Collaboration, design thinking, and innovation will be critical to closing the USD 4 trillion funding gap to achieve global sustainability goals.”
The panel underscored that impact investing, when executed with clarity and accountability, has the potential to address societal challenges at scale while ensuring financial returns.
