Read this before your next investment rounds to make the right choices.
As a forward thinking investor in the complex world of finance, you've likely encountered the term "impact investing." But what exactly does it entail, and how does it differ from other investment strategies?
Let's unpack the essence of impact investing and explore its role in shaping a brighter, more sustainable future.
The GIIN's market sizing report estimates the current size of the global impact investing market to be $1.164 trillion, revealing its considerable growth in recent years.
And with the global impact investing market size to hit the US$4.5 trillion mark by the end of 2030, plus impact investing market revenue to witness significant growth at 18.6% CAGR during 2023 – 2030, it's safe to say this market provides a viable land for investors to reap massive ROI.
However, impact investing goes beyond ROI or traditional philanthropy by aligning financial goals with positive social and environmental outcomes. It's about making meaningful societal changes while seeking competitive returns, making it a powerful tool for lasting impact.
Whether empowering underserved communities, championing environmental conservation, or advancing healthcare accessibility, impact investing reigns supreme.
It does this while spanning a broad spectrum of causes, including social, environmental, and health-related initiatives. From supporting affordable housing projects to promoting clean energy solutions, the possibilities are endless.
As per a recent study by Gartner, 91% of banks monitor ESG, 24% of global credit rating agencies, 71% of fixed-income investors and over 90% of insurers, clearly highlighting the importance of impact investing to financial stakeholders.
Its dual focus on generating measurable impact alongside financial returns sets it apart, offering investors a unique opportunity to drive positive change while safeguarding their economic interests.
Indeed, many firms have noticed and are shifting their focus to societal impact investing. A typical example is AT&T focusing the entire company on a $2 billion commitment to bridge the digital divide in underserved communities.
Sustainable practices that offer investors options to align their values with their investment portfolios by channeling capital into initiatives that drive positive change are what we are all about at Enventure.
We want to help you shape a future where prosperity is shared, our planet thrives, and communities flourish. Reach out now to learn more.