The global impact investing market size is expected to reach USD 253.95 billion by 2030, growing at a CAGR of 18.8% from 2023 to 2030. Impact investing is crucial in driving positive social and environmental change while generating financial returns. Its importance lies in the ability to align investments with one's values and contribute to solving pressing global challenges. This investment approach considers both financial performance and the impact on society, aiming to generate measurable and sustainable outcomes.
The impact investing industry’s growth can be attributed to the growing demand from investors seeking to make a difference. Individuals, institutional investors, and corporations increasingly incorporate Environmental, Social, and Governance (ESG) factors into their investment decisions. They recognize that investing in companies and projects that have a positive impact can contribute to a more sustainable future and create long-term value.
The increasing consciousness about social and environmental issues is driving the demand for impact investing, with investors wanting their capital to have a meaningful impact beyond financial returns. Moreover, impact investing is the growing evidence that integrating sustainability factors into investment strategies can deliver competitive financial performance. Numerous studies have shown that companies with strong ESG practices tend to outperform their peers in the long run. This has led to a shift in the perception that sustainable investing requires sacrificing financial returns.
The COVID-19 pandemic positively impacted the impact investing industry. The pandemic has underlined the importance of social and environmental considerations in investment decisions. The crisis has brought issues such as public health, social inequality, and climate change to the forefront, underscoring the need for sustainable and responsible investments. Investors increasingly recognize the value of impact investing in addressing these challenges and building more resilient and sustainable economies.
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The impact investing industry’s growth can be attributed to the growing demand from investors seeking to make a difference. Individuals, institutional investors, and corporations increasingly incorporate Environmental, Social, and Governance (ESG) factors into their investment decisions. They recognize that investing in companies and projects that have a positive impact can contribute to a more sustainable future and create long-term value.
The increasing consciousness about social and environmental issues is driving the demand for impact investing, with investors wanting their capital to have a meaningful impact beyond financial returns. Moreover, impact investing is the growing evidence that integrating sustainability factors into investment strategies can deliver competitive financial performance. Numerous studies have shown that companies with strong ESG practices tend to outperform their peers in the long run. This has led to a shift in the perception that sustainable investing requires sacrificing financial returns.
The COVID-19 pandemic positively impacted the impact investing industry. The pandemic has underlined the importance of social and environmental considerations in investment decisions. The crisis has brought issues such as public health, social inequality, and climate change to the forefront, underscoring the need for sustainable and responsible investments. Investors increasingly recognize the value of impact investing in addressing these challenges and building more resilient and sustainable economies.
Impact Investing Market Report Highlights
- The fixed income segment is expected to emerge at the fastest CAGR over the forecast period. Regulatory and policy developments, such as the emergence of green bond standards and frameworks, have provided a clear structure and guidelines for issuers and investors, boosting confidence in the fixed-income segment of the impact investing industry
- The bond funds segment is expected to emerge at the fastest CAGR over the forecast period. The increasing demand for sustainable and responsible investing has led to the development of dedicated impact bond funds, which focus solely on investing in bonds that meet strict social and environmental criteria
- The passive segment is expected to emerge at the fastest CAGR over the forecast period. Passive strategies are favored by investors who believe in the long-term sustainability of impact investing. By investing in the overall market or specific sectors through passive funds, investors can participate in the broader societal and environmental shifts taking place
- The retail investors segment is expected to emerge at the fastest CAGR over the forecast period. The increasing transparency and disclosure of impact investment products have enhanced retail investors' confidence in this sector
- The Asia Pacific region is expected to emerge at the fastest CAGR over the forecast period. The region's economic growth, rising middle class, and increasing disposable incomes have also contributed to the expansion of the impact investing industry
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Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. Market Variables, Trends, and Scope
Chapter 4. Impact Investing Market: Asset Class Estimates & Trend Analysis
Chapter 5. Impact Investing Market: Offerings Estimates & Trend Analysis
Chapter 6. Impact Investing Market: Investment Style Estimates & Trend Analysis
Chapter 7. Impact Investing Market: Investor Type Estimates & Trend Analysis
Chapter 8. Impact Investing Market: Regional Estimates & Trend Analysis
Chapter 9. Competitive Landscape
List of Tables
List of Figures
Companies Mentioned
- BlackRock, Inc.
- Goldman Sachs
- Bain Capital LP
- Morgan Stanley
- Vital Capital
- Prudential Financial, Inc.
- BlueOrchard Finance Ltd.
- Manulife Investment Management Holdings (Canada) Inc.
- Leapfrog Investments
- Community Investment Management LLC
Methodology
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