Impact investing is capturing the attention of investors across the world. Last year, 209 leading impact investors committed $22 billion to nearly 8,000 impact investments, and planned to increase capital invested this year by 17% and the number of investments by 20%. Throughout the industry’s development, however, some investors have questioned the ability of impact investments to
When it comes to driving social progress, good intentions and a big heart are not enough to guide good decisions. Moving the needle requires skilled professionals who have experience creating social change. Unfortunately, our research shows that when it comes to impact investing, financiers don’t value such expertise and wisdom as much as they should.
A vocal minority of impact investing practitioners have long espoused that impact measurement is a waste of time and resources because it distracts investors from their primary objective: to support the growth of businesses tackling real social and environmental challenges. That position is no longer defensible. While impact investors recognize they must strike a careful
The growing threat of climate change is no longer a matter of contentious scientific debate. Climate scientists now agree that humanity’s “carbon budget”—the cumulative sum of greenhouse gases that humanity can emit while avoiding the worst effects of climate change—will be exhausted by roughly 2040 at current emission rates. While all levels of warming carry
Like you, we get a pile of white papers on impact investing. Unlike you (understandably), we try to read them! So we’re grateful to the Global Impact Investing Network for a handy cheat sheet of the last couple years of research on impact investing financial performance. To better inform investment decisions and attract new participants to the
Partnerships for the goals: Governments, non-profits and private investors working together to make a greater impact
The UN's 17 Sustainable Development Goals (SDGs) were set up in 2015 to guide governments, businesses and individuals on how best to do just that, with specific targets to reach by 2030. "To successfully implement the 2030 Agenda for Sustainable Development, we must swiftly move from commitments to action. To do that, we need strong,
Every generation lives on the cusp of major social transformations. Ours is witnessing revolutionary changes in the role of capital in society, with trillions of dollars migrating toward positive social and environmental purposes. It would be a tragedy to let this moment pass without attempting to maximize its potential as conscious consumers of impact investment.
David Yeh’s career spans Wall Street, global venture capital and the White House. Yeh integrates his unique insights on business, innovation and government to develop impact solutions that often address critical needs in energy, infrastructure/real assets and sustainability. He founded Capitol Hill to work with global asset managers, high net worth families and game changing
Billions of dollars are now invested to create social impact as well as financial return. But with powerful new players such as Goldman Sachs and the Ford Foundation striding into this maturing market, will the sector’s original values be lost? The impact investment sector as we know it was born in the second half of
The social impact bond (SIB) mechanism is becoming an important tool for tackling social and environmental problems. While this form of investment is not usually the most obvious source of yield for bond investors, it has become more popular in recent years as a means for private investors to give back to the community and
Impact investing has taken off, and it’s no wonder: while people want to watch their money grow in the market, they don’t want to stash their cash with corporations they dislike. A recent study found that 78 percent of millennial investors have either put their money into these types of investments, or plan to in the future.
Lots of us are looking for ways to use traditional business skills to change the world. Here's one woman's tips on her move from Goldman to BlackRock to LeapFrog, a global impact investing firm. I met Clare Murray through our common Columbia Business School connection roots over a year ago. Like many business school colleagues, she was
Earlier this year, National Australia Bank raised 500 million Australian dollars ($384 million) from investors keen to promote gender equality at work, and get a healthy return on their cash. It was the country's first gender bond. "It's not often that you see capital markets and diversity come together," said Eva Zileli, head of group
Responsible investing grows even as opinions remain divided, RBC Global Asset Management Survey Finds
Two-thirds of institutional investors use environmental, social and governance (ESG) considerations as part of their investment approach, and 25% expect to increase their allocation to managers with ESG-based investment strategies within one year, according to a global survey by RBC Global Asset Management (RBC GAM). While these results suggest that responsible investing has moved into
According to a recent survey conducted by the Global Impact Investing Network, over $114 billion in impact investing assets are currently being managed globally. The United States and Canada account for $46 billion invested, with Europe tallying $16 billion and sub-Saharan Africa totaling $11 billion. Housing programs makeup the primary target for impact investments, followed
Between black walls of impenetrable forest, the huge Congo river glides along more than a mile wide. What strikes you when visiting the Congo, as I did last month, is how little it has changed since Henry Stanley first navigated the great river almost 150 years ago. Dotted along its bank are small villages. Their
We’re living in an era when everyone is seeking creative solutions to overwhelming global issues. The nonprofit XPrize is funding teams to tackle problems such as Alzheimer’s disease and air quality. The MacArthur Foundation’s 100&Change competition will award $100 million to a single idea with the potential to create real, systems-level impact. But there’s a voice missing from these
Many people are familiar with fairtrade coffee, but less clear about where to go for the equivalent of “fairtrade banking”. This is where a new suite of products called social impact investment comes in. Social impact investment was originally a niche market. Options for people who wanted to be socially responsible in their investments were
There has been a radical shift in the role of business in society. People expect more from their businesses, especially the rising millennial generation. According to Deloitte, millennials believe that a business' success should be measured in terms of more than just its financial performance and 76% of millennials say businesses, in general, are having a
Private-equity firm CoreCo has an investment thesis you’re not likely to read about in The Wall Street Journal. The $54 million fund spots high-growth businesses in Central America that operate with sustainable business practices. CoreCo is among this year’s Best for the World funds named by nonprofit B Lab, based on an assessment of the impact of each company