Readings: When Impact Pays (blog by ANDE)
Readings: When Impact Pays
February 3, 2026
"When Impact Pays:
What Roots of Impact Taught Us About Impact-Linked Finance"
In this blogpost by Joy Munthamraksa in the context of a recent KINETIK–ANDE–ROI Investment Manager Training, our team pushed participants to treat impact measurement as more than a reporting requirement. The message was straightforward: when incentives are built into financing terms—and measurement is credible—capital can reward real outcomes and strengthen investee strategy.
Blogpost extract:
“Why impact-linked finance?”
While 90% of investors say they are satisfied with their impact performance, many have not set clear impact targets. Without targets, measurement can become descriptive rather than decision-useful—good for reporting, less useful for improving outcomes.
At its core, ILF offers better financial terms for better impact, embedding incentives directly into investment structures. When designed well, ILF can:
# Align investors and investees around shared impact targets
# Reward impact outperformance (not just activity)
# Strengthen credibility through rigorous measurement and independent verification
Read more:
The full blogpost can be found on the ANDE page here:
