This data-rich Annual Impact Investor Survey report (Executive Summary here) from Global Impact Investing Network reveals a number of noteworthy impact investing statistics and trends based on a survey of 229 impact investors globally - including fund managers (59%), foundations (13%), banks (6%), family offices (4%), and pension funds/insurance companies (4%) (see Appendix 1) managing over $228B in impact investing assets.
Key findings include:
- The impact investing industry is growing. The number of investments and amount of capital investments planned for 2018 exceeds 2017 investment activity by 5% and 8%, respectively.
- The impact investor market is diverse in multiple respects. Among other things, 67% make only impact investments, while the balance also make conventional investments. Also notable: 64% of investors target risk-adjusted market-rate returns; the remainder seek below-market-rate returns that are either closer to market-rate returns (20%) or closer to capital preservation (16%).
- Impact investors demonstrate a strong commitment to measuring and managing impact. Over half of respondents target both E&S objectives, an additional 40% primarily target social objectives, and 6% primarily target environmental objectives. To achieve these objectives, 76% of respondents set impact targets for some or all of their investments. 75% of investors report tracking their investment performance to the UN Sustainable Development Goals or planning to do so in the future.
- Investors report performance consistent with both financial and impact expectations. 82% and 76% reported impact and financial performance, respectively, in line with their expectations, and 15% reported out-performance in both of these areas.
Among the top challenges to development and growth of the impact investing industry cited by respondents: the lack of (i) appropriate capital across the risk/return spectrum, (ii) a common understanding of definition and segmentation of the impact investing market, and (iii) suitable exit options.
See also the results by survey respondent subgroup, this ThinkAdvisor article, and this NerdWallet post: Impact Investing: Using Your Dollars to Make Change, and today's Society Alert for board sustainability oversight practices & trends (and more)!.