2. Definitional Alignment

Section 2 of this report attempts to provide clarity to the definition of impact investing. Section 2.1 outlines the definition that was developed as part of the Mainstreaming Impact Investing initiative. A definitional discussion of impact investing can often lead to more questions than answers; thus Section 2.2 clarifies common areas of confusion. As with any new and emerging sector, the definition is an evolving one and will be further clarified as the sector progresses and uncertainties are addressed through investments made and lessons learned.