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Impact investing will build more momentum worldwide

Friday, August 9, 2019

Subject

Impact investment.

Significance

The International Finance Corporation (IFC) estimates that private sector appetite to invest in addressing climate change and other societal crises could be as large as 26 trillion dollars. The diversity and rate of return on opportunities will rise and the sector will increasingly align with the UN Sustainable Development Goals (SDGs), which require billions of dollars of investment annually to 2030 on top of aid and philanthropy.

Impacts

  • Individual investors will put pressure on asset managers to offer investments that align with their social and environmental expectations.
  • Companies and institutional investors will increasingly be held accountable for the negative impact of the activities they invest in.
  • If they can show evidence of their impact and profitability, enterprises and bodies with social missions will attract more capital.
  • The role of independent and peer-reviewed evidence and auditing will grow, as impact metrics guide more impact investment decisions.
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