Redefining Value From Outcome Based Funding to Tradeable Impact 2025

Comparative summary of approaches to tradeable impact TABLE 3 Standalone social impact credits require a structured transition that guides key stakeholders through early experimentation towards systemic integration. This chapter outlines potential scenarios for scaling the tradeable impact economy, highlighting early entry points, phase-by-phase development and distinct roles for stakeholders. The foundation for a tradeable impact market already exists. Several mechanisms – including OBF, social impact bonds (SIBs), sustainability reporting frameworks and voluntary impact platforms – offer fertile ground for early experimentation. To catalyse early momentum, the following strategies can be implemented: Policy alignment: Governments can integrate tradeable impact into public procurement, subsidies or tax incentives – building on existing sustainability standards like the EU’s CSRD or CSDDD. –Immediate benefits: Enables impact transparency to measure the efficiency of government policies and trickle-down effects of impact throughout supply chains –Long-term benefits: Creates early demand for tradeable impact assets Corporate pilot programmes: Companies with robust impact strategies or sustainability operations can begin purchasing ICs linked to verified impact activities through platforms like CGM or OutcomesX. –Immediate benefits: Safeguards against green- or impact-washing by providing verified, auditable impact and integrating social impact considerations into key business functions. Allows for a determination of the SROI of individual investments and a comparison of value from different types of interventions. –Long-term benefits: Signals private-sector demand for social impact credits, stimulating supply of verified interventions. Allows for the integration of targeted outcomes in social procurement in programmes such as the SPCs. Impact investment vehicles: Impact investors can pilot social impact credits – potentially in partnership with development finance institutions – offering supplemental revenues to social entrepreneurs and innovators, e.g. through social impact incentives (SIINCs). –Immediate benefits: Unlocks new sources of capital for social entrepreneurs and innovators and links impact investing more closely to verified impact outcomes –Long-term benefits: Strengthens capabilities among impact investors and social entrepreneurs/innovators to deploy pay-for- results mechanisms Digital verification tools: Technology start-ups can develop modular platforms for outcome verification using AI, blockchain and mobile-based participatory tracking. –Immediate benefits: Efficiencies in impact measurement and validation unlocked through new technologies –Long-term benefits: Lowers verification costs and stimulates the verification ecosystem These early building blocks can build legitimacy, develop infrastructure and generate critical feedback for designing a tradeable impact system.5.2 Early entry points : quick wins to build momentumRegional/thematic creditsSocial impact as co-benefitStandalone social impact credits Implementation complexityLow Lowest Highest Time-to-market Fast Fastest Slowest Scalability potential Lowest High Highest Redefining Value: From Outcome-Based Funding to Tradeable Impact 26