The marketplace for impact investing—investments that combine social or environmental objectives alongside financial returns—has grown to US$502 billion, according to a new study by the Global Impact Investing Network, a non-profit organisation that lobbies for the sector.
Impact investing has gradually moved towards the mainstream within the financial sector, with many major private banks and fund managers now offering projects. However, the fragmentation of the industry and the many diverse approaches to measuring impact have meant that it has been difficult to estimate the actual size of the market.
“The results of this study underscore the momentum of impact investing, but also the need for continued growth across the responsible investing landscape if we are to address global challenges like those outlined in the Sustainable Development Goals,” said Amit Bouri, GIIN’s co-founder and CEO. “As the industry grows, we need to be sure it scales with integrity—ensuring good intentions translate into real impact results.”
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