Beyond Compliance: Embedding Impact through Innovative Finance

Innovative finance is reshaping the corporate approach to social impact, as detailed in the Schwab Foundation's latest report, Beyond Compliance: Embedding Impact through Innovative Finance.

The report highlights how this emerging practice already mobilizes $185 billion by linking financial rewards to measurable social outcomes. It offers businesses a pathway to address societal challenges while maintaining a competitive edge. For example, social progress credits in South Korea have directed $50 million to social innovators, demonstrating the tangible benefits of this approach. A range of other case studies showcase how companies are already exploring this approach to address critical social issues in their value chains.

In a global economy facing low growth, innovative finance presents an opportunity to create new markets and redefine value. The report invites organizations to consider how embedding social impact into core operations can enhance resilience and long-term success.