For the 2018 report, we were able to leverage the growing data set to deepen our understanding of a number of interesting topics.
Industry Trends: Of the 229 organizations that participated this year, 82 also participated five years ago. These organizations have grown their impact investing assets under management at the robust rate of 13% per annum, and have done so in part by expanding into regions, sectors, and asset classes that have historically been less popular.
Practice of ‘Conventional’ Investors: Over one in three respondents are organizations that are established in the ‘conventional’ investing markets and have also begun impact investing activities. Overwhelmingly, these organizations report that—compared to three years ago—they are now making more impact investments, deepening their commitment to impact measurement, and gaining more buy-in from key internal stakeholders. Such growth is exciting on many fronts, not least because it brings in new investors and more capital, but also because it works to enhance the broader credibility and professionalism of impact investing practice.
Industry Integrity: The growing involvement of large-scale, mainstream firms also presents some risks – in particular, the risk of ‘impact washing’, i.e. that some actors may be adopting the label without meaningful fidelity to impact. Encouragingly, impact investors are cognizant of this concern and emphasize the importance of greater transparency around impact to mitigate this risk. Other ideas include third-party certification or the development of shared principles. Indeed, the GIIN has committed to developing a set of principles (to be launched in 2019) to strengthen the identity of impact investing to drive growth and protect the integrity of the market.
See the full PDF guide below.
Impact Investing is a complex topic, and others found these selections from the Impact Giving archive from Giving Compass to be good resources.
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If you are interested in Impact Investing, please see these relevant events, training, conferences or volunteering opportunities the Giving Compass team recommends.
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Impact Investing is an important topic. Other members found these Giving Funds, Charitable Organizations and Projects aggregated by Giving Compass to be relevant to individuals with a passion for Impact Investing.