Impact investing is a burgeoning growth area based primarily on the philanthropic goal of making a positive environmental and social impact beyond financial return. A term first coined by the Rockefeller Foundation in 2007, impact investing typically involves private sector investors providing debt or equity financing to companies with a strong commitment to corporate social responsibility (CSR). It is a market currently valued at $77bn, with assets under management (AUM) expected to reach $1 trillion by 2025, according to the ‘2016 Annual Impact Investor Survey’ by the Global Impact Investing Network (GIIN).
Opining that impact investing should no longer be viewed as a nascent market, Amit Bouri, CEO of the GIIN, notes in his forward to the survey that “Investors around the world are hard at work growing and improving this market—demonstrating that investments can and should be directed toward addressing some of the most pressing social and environmental challenges”.
