News & Resources

What if grants were not only a source of funding, but also a way to mobilise more capital for social impact? As public resources become increasingly constrained and demand for social investment grows, philanthropic institutions are exploring how grants and investment can work together rather than as separate tools. Banking Foundations are particularly well positioned to experiment with this approach. Their institutional role, knowledge of local needs and Third Sector organisations, experience working with public institutions, and access to patient capital give them the potential to bridge the space between traditional philanthropy and impact investing.

In the last decade, we have witnessed a dramatic rise in interest around “impact” from an incredibly diverse range of stakeholders—from innovative social enterprises to large investment funds, and from multinational corporations to boutique financial institutions. As market demand for impact data, insights, and reporting grew exponentially, a completely new narrative emerged. This quest for sustainability became so central that European institutions introduced a comprehensive normative framework to establish clear, transparent criteria for accountability and to promote sustainability into European financial and business models.

Over the past decade, impact investing has made significant progress in the field of impact measurement. Today, it is difficult to find a fund or impact-oriented organisation that does not refer to recognised frameworks such as IRIS+, IMP, OPIM, or SDGs. These standards have contributed to professionalising the sector, creating a common language, and increasing the credibility of reported information.

In the growing debate around social impact, much of the conversation focuses on measurement standards: metrics, KPIs, and rating systems are indispensable for tracking the effectiveness of an intervention. Yet, data alone is not enough to trigger deep, lasting transformation.

Over the past decade, impact investing has moved from the margins of finance into a rapidly growing global investment movement. Institutional investors, foundations, and asset managers increasingly seek not only financial returns, but also generate measurable social and environmental outcomes (Hockerts et al., 2022; GIIN, 2024; OECD, 2024).