Redefining Value From Outcome Based Funding to Tradeable Impact 2025

Valuation and pricing KEY QUESTION How is the value of impact determined, and how is it priced? Valuation translates outcomes into monetary terms, laying the groundwork for pricing and trading. Multiple valuation methods exist, including cost- based approaches (e.g. avoided cost, replacement cost), preference-based techniques (e.g. willingness to pay) and integrated models like SROI and Impact-Weighted Accounts (IWA).23 These methods offer different advantages, including societal benefit, avoided harm and business value. Tradeable impact markets require clarity on which kind of value logic is applied and for what purpose. Pricing mechanisms may include fixed-rate purchases, bilateral negotiation or market-based discovery (e.g. auctions). The latter seems best positioned for tradeable impact, given impact needs tend to be dynamic (for example, the urgency of providing access to healthcare will evolve over time). Like commodity markets, transparency in pricing, through benchmarks, indices and price tracking, is critical to building investor confidence and liquidity for tradeable impact. A dual system of valuation and price discovery will likely be necessary. Impact valuation provides an initial price at the time that the asset is issued. A floor price might be established (e.g. based on intrinsic or societal value), while market activity determines the trading value. Convergence between these ensures both integrity and efficiency.Market infrastructure KEY QUESTION Where and how is impact traded? For social outcomes to be traded, there is a need for secure, efficient and transparent infrastructure. Key components include: –Registries to record ownership and prevent double-counting –Trading platforms with exchange functionality, order books and clearing mechanisms –Settlement systems to handle financial transactions and asset transfer –Risk management tools to address counterparty and verification risks While social stock exchanges have struggled due to low liquidity and misaligned investor profiles,24 emerging platforms like OutcomesX and CGM offer models that focus on verified outcome credits. Blockchain-based systems can further enhance traceability, auditability and cross-border functionality, especially for P2P or decentralized markets. Depending on market maturity, the infrastructure may evolve from bilateral contracts to centralized exchanges. Localized or sectoral markets can start with simpler setups, eventually scaling towards more integrated ecosystems. Image credit: myAgro Redefining Value: From Outcome-Based Funding to Tradeable Impact 21