The Global Impact Investing Network (GIIN) estimates the current size of the global impact investing market to be US$502bn, in its new in-depth analysis of the current size and composition of the impact investing market.
GIIN is a global champion of impact investing, dedicated to increasing the scale and effectiveness of impact investing around the world.
The report, Sizing the Impact Investing Market, is based on the collation of Assets Under Management (AUM) data on more than 1,300 impact investors around the world. These include asset managers, foundations, banks, development finance institutions, family offices, pension funds, insurance companies, and others. The report acknowledges that at present it is difficult to capture a clear estimate of the market’s size due to a lack of available data and the fast-evolving nature of the industry.
“As the impact investing industry develops, it is critical that we further develop our understanding of the contours of the market – and one of the most important and fundamental data points about any industry is its current size,” said GIIN CEO and Co-Founder Amit Bouri. “This research gives us insight into the current state of the market, and it will also lead to deeper conversations about the market’s future potential.”
“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,” Bouri continued. “As the industry grows, we need to be sure it scales with integrity—ensuring good intentions translate into real impact results.”
More Impact Investing Initiatives from the GIIN
The publication of this landmark report will lead to the launch of two critical pieces of industry infrastructure that are designed to maintain the integrity of practice.
The GIIN has launched the Core Characteristics of Impact Investing, which outline the elements that define impact investing and distinguish it from other complementary investment approaches.
IRIS+, a comprehensive, metrics-based system for impact measurement and management that enables data comparisons across an impact investing portfolios is scheduled to launch soon.
What are impact investments?
Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets and target a range of returns from below market to market rate, depending upon investors’ objectives.