Investors' Appetite for Impact Investing Could Be $26 t - IFC Report
Global, April, 21 2019 -
Investors’ appetite for impact investing - in which they seek to generate positive impact for society alongside strong financial returns - could be $26 trillion, according to a new report issued by IFC, a member of the World Bank Group.
The report, Creating Impact: The Promise of Impact Investing, is the most comprehensive assessment so far of the potential global market for impact investing. As much as $268 trillion - the financial assets held by institutions and households across the world - is potentially available for investment.
The report notes that if 10 percent of this was channelled towards investments focused on improving social and environmental outcomes, it would go a long way towards providing the funding to achieve Sustainable Development Goals while also facilitating a shift to a low-carbon future.
The growing demand for impact investing partly reflects demographic shifts. According to Accenture, in North America alone, at least $30 trillion in wealth will be transferred in the coming decades from Baby Boomers to Generation X and millennials.
Younger investors increasingly favour socially and environmentally motivated investment strategies - and they’re willing to invest larger amounts in them.
“More investors – including younger people – are demanding that their investments be channeled into funds that have positive impact for communities and the environment,” said IFC CEO Philippe Le Houérou.
“We have a historic opportunity to grow this market - and that’s good news for the planet and the communities around the world.”