A for Additionality – A-Z of impact investing

Read our A-Z definitions to stay up to date with impact investment terminology.

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Additionality – investor additionality means an increase in social or environmental benefits that would not have occurred if an investment was not made. It takes two forms: financial and engagement.

Financial additionality refers to the financing of projects or companies that otherwise would not have been financed. 

Engagement provides additionality if the investor increases the social or environmental benefits created by a project or a company, through its stewardship processes, that otherwise would not have increased.

Read our other definitions
B for Blended finance 
C for Concessionary 
D for Double materiality 
E for ESG
F for Fiduciary duty 
G for Green bonds
H for Hydrogen
I for Intentionality
J for Just transition
K for Key performance indicators
L for Low carbon 
M for Measurement
N for Natural capital
O for Outcomes 
P for Paris Agreement
Q for Qualitative Impact Assessment Protocol
R for Responsible investment
S for Sustainable development goals
T for Triple bottom line
U for Underserved communities 
V for Vocational training
W for Water access
Y for Youth empowerment 
Z for Zero-waste strategy