How big is the market?
According to this year’s annual member survey from the Global Impact Investing Network, respondents collectively manage over $228bn (£176bn) in impact-investing assets, a figure which serves as the latest best-available ‘floor’ for the size of the impact investing market. In 2017, this figure stood at $114bn (£68bn).
Do investors have to sacrifice returns to make an impact?
It is a common misconception that investors have to give up financial returns to make a positive impact. A benchmark study published by Cambridge Associates found that impact investing can capitalise on long-term social or environmental trends to compete with, and at times outperform, traditional asset class strategies.
Indeed, impact investing favours those companies that are trying to do good and run their businesses in a sustainable manner.
Such companies avoid fines and other penalties; they are often considered to have stronger relationships with their customers, suppliers and employees.
Furthermore, they tend to operate in emerging sectors with high-growth potential.
