PUBLISHER: Grand View Research | PRODUCT CODE: 1321398
PUBLISHER: Grand View Research | PRODUCT CODE: 1321398
The global impact investing market size is expected to reach USD 253.95 billion by 2030, growing at a CAGR of 18.8% from 2023 to 2030, according to a new report by Grand View Research, Inc. Impact investing is crucial in driving positive social and environmental change while generating financial returns. Its importance lies in the ability to align investments with one's values and contribute to solving pressing global challenges. This investment approach considers both financial performance and the impact on society, aiming to generate measurable and sustainable outcomes.
The impact investing industry's growth can be attributed to the growing demand from investors seeking to make a difference. Individuals, institutional investors, and corporations increasingly incorporate Environmental, Social, and Governance (ESG) factors into their investment decisions. They recognize that investing in companies and projects that have a positive impact can contribute to a more sustainable future and create long-term value.
The increasing consciousness about social and environmental issues is driving the demand for impact investing, with investors wanting their capital to have a meaningful impact beyond financial returns. Moreover, impact investing is the growing evidence that integrating sustainability factors into investment strategies can deliver competitive financial performance. Numerous studies have shown that companies with strong ESG practices tend to outperform their peers in the long run. This has led to a shift in the perception that sustainable investing requires sacrificing financial returns.
The COVID-19 pandemic positively impacted the impact investing industry. The pandemic has underlined the importance of social and environmental considerations in investment decisions. The crisis has brought issues such as public health, social inequality, and climate change to the forefront, underscoring the need for sustainable and responsible investments. Investors increasingly recognize the value of impact investing in addressing these challenges and building more resilient and sustainable economies.