Newest research on the size of the UK impact investing market
Since the early 2000s, the impact investing market has grown in scale, momentum, and support. With that growth, there has been an increased demand for robust data and market insights. In our inaugural research from 2021/22, we analysed the size of the UK impact investing market for the very first time.
In September 2024, the Impact Investing Institute released its second report on the size of UK impact investing market, revealing substantial growth and increasing sophistication in investments that aim to generate positive social and environmental outcomes alongside financial returns.
For the first time, we have collaborated with the Global Impact Investing Network (GIIN) on data collection to improve the quality and increase the quantity of the data around impact investing.
The report, produced through an extensive market survey and engagement with over 100 key market actors, thought leaders, and policymakers, highlights that this growth occurred despite challenging market conditions. This resilience indicates the increasing importance and maturity of impact investing in the UK financial landscape.
Key findings
- The UK impact investing market has grown to £76.8 billion in assets under management (AUM) as of end-2023. This marks a £19.3 billion increase from the Institute’s inaugural report and represents a 10.1% compound annual growth rate from the beginning of 2021 until the end of 2023.
- Impact investing growth has significantly outpaced the broader UK asset management sector, which had an annual growth rate between -2% and 0% over the same period. We estimate that impact investing accounts for just under 1% of the whole UK investing market.
- UK-based impact investors are supporting impactful companies, projects and assets domestically (34%) and across the globe (66%). Two-thirds of survey respondents plan to increase or sustain their allocation of capital towards impactful companies, projects, and assets in the UK in the next five years.
- The UK impact investing market accounts for approximately 8% of the global impact investing market.
Further steps
By evolving a robust methodology and determining the most effective way to obtain data and insights from asset owners, asset managers, and other UK investment market participants, we will continue to provide the most accurate picture of the UK impact investing market.
