The impact investing market
Introduction
How to use these resources
Resources in this module
Glossary of terms
We have put together a glossary of terms for impact investing
Filter resources by level:
Impact investing market structure, size and trends
-
Annual Impact Investor Survey, 2020
Global Impact Investing Network
Reading time: 30 minutes
The GIIN’s 2020 Annual Impact Investor Survey details the investment activity of 294 leading impact investors, collectively managing USD 404 billion, over 2019 and forecasted into 2020. The survey has shown that impact investing has growth in depth and sophistication over 2010, with a rise in realised gross returns and assets over time and impact measurement and management practices.
What the reviewer found helpful:“The interactive charts were particularly useful for representing the impact investor survey data”
Serena Grover
Intermediate
Impact investing across asset classes and public/private markets
-
Impact investing across asset classes
World Economic Forum
Reading time: 15 minutes
This is a list of all the available types of impact investments, explaining how they fit into the mainstream assets classes, cash, fixed income, investment funds, equity, real estate etc. and helping readers get a grasp of the impact investment landscape. A spotlight on social impact bonds is included as these do not sit within a mainstream asset class. It also explains why some asset types, (e.g. commodities, hedge funds) are not available as impact investments.
What the reviewer found helpful:“I found the real examples of actual impact investments brought the information to life and deepened my understanding.”
Rebecca Lagan
Intermediate
-
Investing for impact: Case studies across asset classes
Bridges Ventures/Parthenon Groupp/Global Impact Investing Network
Reading time: 2-3 hours
The report maps the Impact Investment market in a framework that resonates with investors by mapping the impact investment sector case studies along the traditional asset classes, resulting in an Impact Investment Asset Allocation Framework (AAF). All asset classes have shown development of impact investment themes and clarity is emerging around the returns that the sector can generate. The AAF is organised along two key dimensions: investor motivation in connection with returns (Financial First or Impact First) and the asset class (as per traditional asset allocation) distribution.
What the reviewer found helpful:“The layered structures across asset classes and how the use of layered structures is helping to drive money into new impact areas.”
Intermediate
Supply (investors) and demand (investees)
-
Navigating investor types and landscapes
Global Impact Investing Network
Reading time: 10 minutes
The article looks at a variety of investor types as well as the role of sponsors and placement agents in marketing an impact product. Acts as a useful guide to the different investor profiles who may invest in impact investments, their specific nuances and what to consider when marketing an impact investment to them. The reading also has a wide range of additional resources for those who require more in-depth information on specific sections.
What the reviewer found helpful:“A high level overview on what to consider when marketing an impact product”
Chloe Mallo
Intermediate
-
Impact Investing Handbook (Chapter 2)
Rockefeller Philanthropy Advisors
Reading time: 45 minutes
This chapter of the report sets out the Impact Capital Chain, which is the flow of capital from the asset owners, passing through various intermediaries, the investable enterprises and eventually down to their customers or beneficiaries. It then describes the role of each of the players in the chain and touches on the evolution of fiduciary duty with regard to ESG integration. There is a link to an interesting video on this featuring Al Gore.
What the reviewer found helpful:“I liked the diagrams which helpfully illustrated the wording.”
Rebecca Lagan
Intermediate
-
The role of NABs in supporting enterprises and demand-side actors
Impact Investing Institute
Reading time: 10 minutes
This document uses insights from global NABs (National Advisory Boards) to reflect on how and when support for actors on the demand-side of impact investing is most effective. A particular focus is given to small and medium sized enterprises (SMEs). Spotlights on NABs in 3 separate countries (UK, South Africa and Zambia) are given. These each reflect on how specific demand-side challenges in their regions have shaped their programme design. Users may benefit from reading the report on ‘engaging the supply side’ in conjunction with this document to get a better-rounded picture of both sides of the impact investing market.
What the reviewer found helpful:“The 8 top tips on page 3 are well reasoned and detailed, even for those already familiar with the market.” Anna Martinovic
Intermediate
Impact investing strategies
-
Impact investing: Strategy and action
Rockefeller Philanthropy Advisors
Reading time: 30 minutes
This guide explains how to take practical steps towards implementing your first impact investment. It talks through three stages of developing an impact investing strategy: prepare, build and refine. Case studies throughout provide helpful examples to support the content.
What the reviewer found helpful:“Comprehensive resource that explores how to set up an impact investing strategy that includes some useful case studies, is written in accessible language and includes helpful resources at the back for further research”
Mhairi Littlewood
Intermediate
-
How investors manage impact
Impact Management Project
Reading time: 10 minutes
The article is a useful introduction to the IMP’s framework for classifying investments according to three types of impact (avoid harm, benefit stakeholders, contribute to solutions). The reading covers why investors seek to manage impact, how investors set impact goals, the data required to understand the impact of investments and lastly how to classify the impact of a portfolio. Matrixes and flow charts help the reader understand the theory in a more simplistic way.
What the reviewer found helpful:“The matrix and investment examples to contextualise the framework was very helpful”
Chloe Mallo
Intermediate
-
Impact Investing: From ideas to practice, pilots to strategy
World Economic Forum
Reading time: 20 minutes
This is a practical guide to building, analysing and managing impact investment portfolios for the professional investor. It covers; – how different investor types approach setting up an impact portfolio and their various organisational structures. – how to define a framework for impact, risk and return and map the target characteristics onto these 3 dimensions. – how to manage the financial and impact risks within the portfolio, including a discussion on diversification.
What the reviewer found helpful:“I enjoyed the 3D risk, return, and impact graphs. Incorporating impact into traditional financial analysis certainly adds another dimension!”
Rebecca Lagan
Intermediate
Market participants: Investors, investees, intermediaries, policy-makers and standard setters
-
Final report: Growing a culture of social impact investing in the UK June 2019 (pp. 28-29)
Implementation Taskforce
Reading time: 3 minutes
Summarises the regulatory landscape for ESG and impact investing. Mentions various international and EU regulatory frameworks that companies must follow. Encourages regulators to further consider impact investment, so that social impact is better embedded in regulatory frameworks.
What the reviewer found helpful:“A helpful summary of the regulatory landscape for ESG and impact investing.”
Mhairi Littlewood
Intermediate