Redefining Value From Outcome Based Funding to Tradeable Impact 2025

How can problem solvers be motivated to address social issues? One approach is to reward the values that society deems important but has not yet started compensating. This is where the concept of tradeable impact comes in. The insight report Beyond Compliance: Embedding Impact through Innovative Finance, published in January 2025, demonstrates how companies can generate social and environmental impact while simultaneously strengthening their businesses through innovative finance models such as outcome-based funding (OBF). The underlying mechanism financially rewards measurable social and environmental outcomes. While these mechanisms are primarily focused on one-time transactions, they are also helping to establish the foundations of a future market based on tradeable impact. Tradeable impact is not a new concept. This paper explores its development, existing solutions and real-world applications while also guiding stakeholders – including governments, businesses, non-profits and financial institutions – on how to approach and evaluate the use of tradeable impact. Image credit: Glasswing Redefining Value: From Outcome-Based Funding to Tradeable Impact 6