Learn

Understanding Impact Investing

Explore the core concepts of investments that aim to generate social and environmental impact alongside financial returns.

Core Concept

Impact Investing Definition

Impact investments are investments made with the intention to generate positive, measurable social or environmental impact alongside a financial return.

Core Characteristics

Intentionality

Clear desire for social/environmental benefits.

Data-Driven Design

Using evidence for effective investment.

Impact Management

Active management towards impact goals.

Industry Growth

Sharing learnings to advance the field.

Evolution

History

The history of impact investing is a story of evolving consciousness, where financial mechanisms increasingly align with social and environmental values. While its modern form is relatively recent, the underlying principles have deep roots.

This timeline highlights key events, from early ethical investment movements to the coining of "impact investing" and the establishment of major industry organizations and standards.

Market Overview

Current State

The global impact investing market, as tracked by the GIIN, has reached a total value exceeding $1.57 trillion, demonstrating steady growth and increased investor interest. This figure represents assets under management (AUM) and reflects a compound annual growth rate (CAGR) of 21% since 2019.

The market is also experiencing a surge in emerging market investments, with a growing number of investors allocating capital to these regions, driven by both social and environmental considerations.

Impact Investment Themes

Hover or tap to explore

Ready to Go Deeper?

Access the full Blueprint framework to build your own rigorous impact investment thesis.

Access the Blueprint
Accessibility Tools