Images: UpTogether, Boomera, World Economic Forum, Village Enterprise, myAgro, Enuma, doctHERs Disclaimer This document is published by the Schwab Foundation for Social Entrepreneurship in partnership with the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the Schwab Foundation and the World Economic Forum but whose results do not necessarily represent the views of the Schwab Foundation or the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders. © 2025 Schwab Foundation for Social Entrepreneurship. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.Contents Foreword 3 Executive summary 4 Introduction 5 1 Challenges of traditional financing approaches 7 1.1 Government approaches: structural limits and fiscal challenges 7 1.2 Corporate approach: the limits of traditional corporate social responsibility 7 1.3 Philanthropy: a limited resource 8 1.4 The need to support social entrepreneurs 8 2 The tradeable impact opportunity 9 2.1 Tradeable impact as a market expansion opportunity 9 2.2 A new asset class for investors 10 2.3 Competitive advantage for businesses 11 2.4 Design challenges of tradeable impact 11 2.5 Step change for impact? 11 3 Scenarios for tradeable impact 12 3.1 Worst-case scenario: the cost of inaction 12 3.2 A future with expanded market mechanisms for negative externalities 13 3.3 A future where tradeable impact scales from grassroots to global markets 14 3.4 A future where tradeable impact becomes an impact currency 17 4 Building blocks for tradeable impact 19 4.1 Market components 20 4.2 Lessons from the carbon market 23 5 From vision to action: a pathway for scaling tradeable impact 25 5.1 Overall approaches to scaling tradeable impact 25 5.2 Early entry points: quick wins to build momentum 26 5.3 Pathway to scale: a three-phase transition 27 Conclusion 28 Contributors 29 Endnotes 31 Redefining Value: From Outcome-Based Funding to Tradeable Impact 2

Redefining Value From Outcome Based Funding to Tradeable Impact 2025