Exploring the Recent Trends and News in Impact Investing
Introduction to Impact Investing
Impact investing is an investment strategy that aims to generate both financial returns and positive social or environmental impacts. This growing field of investment is attracting a diverse range of investors, from individuals to corporations, who are interested in supporting sustainable development while also earning a profit.
Recent Trends in Impact Investing
Increased Interest and Capital Inflow
Over the last few years, impact investing has seen a significant increase in interest and capital inflow. According to the Global Impact Investing Network (GIIN), the impact investing market doubled in size from $114 billion in assets under management in 2016 to $228 billion in 2017. This growth demonstrates the increasing recognition of the potential for impact investments to address global challenges while also providing financial returns.
Shift Towards Sustainable Development Goals (SDGs)
Another key trend in impact investing is the shift towards alignment with the United Nations’ Sustainable Development Goals (SDGs). These goals provide a framework for addressing the world’s most pressing issues, such as poverty, inequality, and climate change. Many impact investors are now using the SDGs as a guide for their investment strategies, seeking out opportunities that contribute to these goals.
Impact Investing News
Investors Prioritizing Impact Investments
In recent news, more investors are prioritizing impact investments in their portfolios. A survey conducted by the Global Impact Investing Network found that over 90% of impact investors reported that their investments were meeting or exceeding their expectations for both financial return and impact.
New Impact Investing Funds
In addition to individual investors, several new impact investing funds have been launched in recent months. For example, the Rise Fund, a $2 billion impact fund managed by TPG Growth, recently made headlines for its investments in education, healthcare, and renewable energy companies.
Impact Measurement and Management
Another key topic in impact investing news is the ongoing development of impact measurement and management (IMM) practices. Investors and fund managers are increasingly seeking out robust, standardized methods for measuring the social and environmental impacts of their investments. This trend is reflected in the launch of new IMM tools and frameworks, such as the Impact Management Project’s five dimensions of impact.
Conclusion
The recent trends and news in impact investing reflect a growing recognition of the potential for investments to generate both financial returns and positive social or environmental impacts. As this field continues to evolve, it will be interesting to see how impact investing strategies and practices develop to address the world’s most pressing challenges.