Who is Making Impact Investments?Victoria Brodsky
Impact investing has been developing and evolving over the last decade as consumers and investors alike demand solutions to the world’s biggest environmental and global health issues.
What Is Impact Investing?
Impact investing is a term that is being used more and more in the financial world, but what is it exactly? Impact investing is defined as an investment made with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return. In other words, it is doing good while also making a profit. Such investments can take many forms, from lending money to small businesses in developing countries to investing in renewable energy projects.
So, who are the individuals and firms putting their money into impact investing? A recent study by JPMorgan found that approximately two-thirds of impact investors are based in North America and Europe, with the majority being high-net-worth individuals and family offices. However, there is also a growing number of institutions getting involved, such as banks, insurance companies, pension funds, and foundations.
What all these investors have in common is a desire to generate both a financial return and a positive social or environmental impact with their investments. If your firm is not yet involved in impact investing, now might be the time to start considering it.
But who are the investors that are putting their money into it? The answer may surprise you. Impact investors come from all walks of life and from all over the world. They include foundations, endowments, pension funds, insurance companies, development finance institutions, family offices, and individual investors. In other words, impact investing is not just for wealthy individuals or philanthropists.
It is becoming a mainstream investment strategy that is being used by a wide range of investors to achieve both financial returns and positive social or environmental impact. If your firm is not already involved in impact investing, now is the time to get involved. There is a growing demand for impact investments, and your firm can benefit from this growing market. The big question is, who are the investors that are putting their money into impact investing, and is your firm one of them?