Impact investing is about more than just compliance. Impact investors focussed on emerging and frontier markets face some distinct challenges starting with high risk of corruption.
Transparency International published in July on Investing with Integrity: the benefits and challenges of integrating high business integrity standards in impact investments:
"Impact investors play a critical role in international efforts to meet the United Nations Sustainable Development Goals. Estimates of the volume of capital managed in this sector range from USD 500 billion to 2 trillion and the figure is growing. These investors have ambitious goals to drive positive economic, environmental and social change through investment. Investing with integrity is fundamental if impact investors are to meet these goals. Business integrity is central to fulfilling a development mandate, and should not only be a matter of compliance. Without this insight, the positive forms of impact that investors seek are in jeopardy."
Read the full Transparency International report here.