How do impact investors resolve conflicts when a project delivers financial returns but harms local ecosystems in developing countries?

Impact investments can backfire—e.g., a renewable energy plant that creates jobs but pollutes local water . Investors face dilemmas: pull funding (losing returns) or continue (undermining impact goals). How are they addressing this? Do they build "impact clawbacks" that reduce returns if environmental standards are violated, or fund remediation alongside the project? I want to explore case studies of such conflicts, including how investors engaged local communities to find solutions and how this affected long-term investor credibility.