Social Component Investments: FAQs

Q: How does a Social Component Investment (SCIs) differ from a Sustainability Investment (SUIs), a Mission Related Investment (MRIs) or a Program Related Investment (PRIs)?

A: A Social Component Investment's main focus is on maximizing return on investment. The social benefit outcome is a byproduct of the investment, but not the focus of the investment. SUIs, MRIs and PRIs all are direct investments in a social benefit business model where the return on investment is measured usually by a double or triple bottom line - return on investment, social impact, impact to the environment and so on.

Q: Can the impact of a Social Component Investment be measured?

A: Maybe. Because the social impact is secondary to the focus of the fund, typically the reporting and monitoring is focused only on the monetary return on investment. Some fund structures make it easier to identify the impact. Others have indirect impacts which are difficult to quantify. However, few funds of this type include reporting and monitoring of their social impact. As investors begin to demand more accountability, we may see a shift in social impact reporting.