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
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Impact investing market structure, size and trends
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Sizing the Impact Investing Market 2022
Global Impact Investing Network (GIIN)
Reading time: 10 minutes
The GIIN’s 2022 market sizing report estimates the current size of the global impact investing market to be $1.164 trillion, revealing its considerable growth in recent years. Methodology for reaching this estimate is covered in Appendix 1.
What the reviewer found helpful:“Diagrams on pages 3-4 provide a useful visual breakdown of how impact investing is spread across organisations and geographies” Anna Martinovic
Specific section to read:
Pages 2-7
Introductory
✔ Recommended
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Size of the European Direct Impact Investment Market 2022
European Venture Philanthropy Association (EVPA)
Reading time: 10 minutes
This report summarises the main takeaways from the first harmonised European impact investment market sizing exercise, organised by the European Impact Investment Consortium. The size of the direct impact investment market in 2022 is estimated to be €80 billion.
What the reviewer found helpful:“The cheat sheet on page 3 and infographic on page 8 provide an engaging summary of the findings” Anna Martinovic
Specific section to read:
Pages 3-14
Introductory
✔ Recommended
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BSC Annual Market Data
Big Society Capital (BSC)
Reading time: 5 minutes
Every year, BSC collates and publishes data on the estimated size of the social impact investment market in the UK. The most recent figures value the UK impact investing market at £7.9 billion, reflecting an almost ten-fold growth over the past ten years.
What the reviewer found helpful:“An accessible and brief snapshot into current trends in the UK impact investing market” Anna Martinovic
Introductory
Impact investing across asset classes and public/private markets
There are no Introductory resources for this topic
Supply (investors) and demand (investees)
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Who is making impact investments?
Global Impact Investing Network
Reading time: 1 minute
A list of a wide variety of investors, both individual and institutional who make impact investments.
What the reviewer found helpful:“A short and quick summary of the types of investors interested in impact investing”
Mhairi Littlewood
Introductory
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Investor motivations for impact: A behavioural examination
Barclays
Reading time: 90 minutes
The report outlines findings from research undertaken on investor motivations for impact investing. Highlights the vital importance of continued education and knowledge sharing and developing narratives around the specific themes that impact investments address in increasing investor engagement. The report notes a shift in perception as investors would expect close to, or above, market returns from an impact investment and construe the shift as being indicative of of a maturing sector, and a growing understanding of the case for impact amongst investors.
What the reviewer found helpful:“The detailed analysis of investor motivations for impact and the behavioural finance perspective on investor motivations.”
Introductory
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Investing in a better world: Understanding the UK public’s demand for opportunities to invest in the Sustainable Development Goals
Department for International Development
Reading time: 50 minutes
This report provides comprehensive analysis of DFID’s investigation into how UK individuals want their pensions and savings to be managed; whether they want the impact on people and the planet to be considered, in junction with financial indicators. Overall, 68% of UK savers would choose to have investments which consider impact alongside financial performance. The survey results indicate that the industry needs to improve accessibility to impactful forms of saving by addressing misconceptions, sharing information, and raising standards on sustainability and impact.
What the reviewer found helpful:“Quite a dense document, but provides a good overview on the strategies to increase sustainable investment within the UK”
Serena Grover
Introductory
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Engaging the supply side of capital and responding to investors needs
Impact Investing Institute
Reading time: 5-10 minutes
This collaborative document outlines advice from market building organisations about how to best engage with investors when trying to facilitate the growth of the impact investing market. It addresses common investor needs and FAQs, such as how to best use evidence, maintain political independence, sustain conversation, and prioritise engagement strategies. Two case studies are briefly outlined at the end. Users may benefit from reading the report on ‘supporting the demand 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 document offers high level ‘bullet point’ considerations for those trying to engage with institutional investors, particularly if they work for independent bodies” Anna Martinovic
Introductory
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Building impact investing knowledge and skills of local actors
Impact Investing Institute
Reading time: 10 minutes
This short paper reflects on the importance of building knowledge and capacity for impact investing among key market stakeholders, including local authorities and investors. The top tips cover the key considerations for market building organisations trying to address this problem. The UNDP SDG Impact Initiative, Bertha Centre for Social Innovation and Entrepreneurship in South Africa, and The Impact Investing Institute share their approaches and experiences in different parts of the world.
What the reviewer found helpful:“The document sheds light on the lack of awareness about impact investing among those who would benefit from it most, and potential global solutions to this” Anna Martinovic
Introductory
Impact investing strategies
There are no Introductory resources for this topic
Market participants: Investors, investees, intermediaries, policy-makers and standard setters
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Working with government to shape transformative policy for impact investing
Impact Investing Institute
Reading time: 5 minutes
This article considers how those trying to build the impact investing market might best engage with government and policymakers to accelerate their cause. Deep dives are offered by three organisations: The Global Steering Group for Impact Investment (GSG), The Impact Investing Institute, and FAIR (French NAB), each of whom give case studies of how they have successfully worked with governments in the past, on impact investing projects. Several communication and strategy techniques are both discussed and evidenced.
What the reviewer found helpful:“The 3 ‘key insights’ at the beginning and FAQs at the end provide accessible ways to have maximum impact on policymakers that anyone can take forward.” Anna Martinovic
Introductory