Origin

Dr Rupert Evenett coined the term Implied Impact in 2012 to describe in economic terms the financial discount or premium relating to the pricing of capital, investments, options, or derivatives when such a pricing variation specifically relates to the degree of social or environmental impact intended or achieved through the underlying transaction.

Evenett describes this concept as the Implied Impact of an investment, noting that as a mathematical coefficient within financial calculations, it is subtly but fundamentally different to the actual measurable social or environmental impact achieved.

Evenett and Richter have trademarked the term Implied Impact and Implied Social Return to preserve its intended meaning, specifically for use with respect to impact investing and social investing, which are deemed to be one and the same for this purpose.

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