Over the past decade, impact investing has experienced astounding growth, with an increased focus on addressing some of society’s most urgent issues. Patrick Briaud, senior advisor at Rockefeller Philanthropy Advisors, looks back at the growth of impact investing 2021 and at how the field will evolve in 2022.

What’s driven the growth of impact investing in recent years?

In various forms, impact investing has been around for decades. The significant growth in the last 10 years, however, has brought the concept to every bank, wealth advisor, and financial news outlet. Since 2012, we have seen a 10x growth in market size, now representing one in every three investment dollars in the United States.

A few factors are driving that growth. The two that we find most interesting are the increased role of women and next-generation wealth holders in investment decisions, including $30 trillion passed down from Baby Boomers. Then, there are particularly urgent issues such as climate change and racial equity.

Ultimately, impact investing is here to stay. The question now becomes: How thoughtfully will asset owners integrate the two core considerations of impact and financial return, and can we help the long-term trajectory of this practice at its current inflection point?

Amid this surge of interest in impact investing, what areas are showing the most growth?

In RPA’s Impact Investing Handbook, we talk about two different ways of thinking when it comes to making an impact with a portfolio: a theme and a lens. An impact theme is a social goal best expressed through a particular asset class, while an impact lens is a social goal that can be integrated across the entire portfolio.

Within impact themes, we see significant activity in climate change as one of society’s most urgent issues and one that can be expressed throughout the different asset classes of a diversified portfolio. We also see significant activity in community development, education, and the workforce.

Read the full article about impact investing and philanthropy by Patrick Briaud Rockefeller Philanthropy Advisors.