Impact Investing Global Market Report 2024

Impact investing involves making investments with the aim of generating positive, measurable social and environmental impact. It reflects a company's commitment to corporate social responsibility while seeking beneficial financial returns.

The primary markets and sectors in impact investing cover education, healthcare, housing, agriculture, environment, clean energy access, climate change, and others. Impact investing supports the expansion of educational opportunities in developing countries, addressing the demand and supply gap. Enterprises of various sizes, including large, medium-sized, and small enterprises, benefit from impact investing.

The impact investing market research report is one of a series of new reports from The Business Research Company that provides impact investing market statistics, including impact investing industry global market size, regional shares, competitors with an impact investing market share, detailed impact investing market segments, market trends and opportunities, and any further data you may need to thrive in the impact investing industry. This impact investing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The impact investing market size has grown rapidly in recent years. It will grow from $478.15 billion in 2023 to $550.52 billion in 2024 at a compound annual growth rate (CAGR) of 15.1%. The increase observed in the historical period can be ascribed to social and environmental awareness, a shift in investor values, the emergence of impact metrics, the rise of social enterprises, preferences of millennials and Gen Z, and institutional commitment.

The impact investing market size is expected to see rapid growth in the next few years. It will grow to $1061.14 billion in 2028 at a compound annual growth rate (CAGR) of 17.8%. The expansion anticipated in the forecast period can be linked to the transition to renewable energy, efforts towards racial and gender equity, global resilience planning, circular economy initiatives, and education and skill development. Major trends projected for the forecast period encompass technology and innovation, outcome measurement and reporting, social bonds and green bonds, collaboration and partnerships, as well as nature-based solutions.

The impact investing market is growing due to an increase in millennial investors adopting sustainable investing practices. Millennial investors, aiming for positive social and environmental change, prefer impact investing over traditional forms of philanthropy. A survey in April 2022 revealed that approximately 61% of millennial investors in the US participate in impact investing, with 40% of non-participating investors expected to engage in impact investment in the future.

The impact investing market is poised for growth due to the increasing focus on competitive returns. Competitive returns refer to financial gains or profits earned by an investment or business that are considered competitive or comparable to others in the same industry or market. In the context of impact investing, competitive returns denote financial gains aligned with or rivaling those of conventional financial investments. According to gov.uk, in the fiscal year 2021 to 2022, Venture Capital Trusts raised £1,122 million through the issuance of shares, marking a substantial 68% increase from the £668 million raised in the previous fiscal year (2020 to 2021). Consequently, the growth of the impact investing market is driven by the increasing focus on competitive returns.

Major companies are introducing new investing services to increase profitability. Temenos AG, a Switzerland-based software provider, launched ESG Investing as-a-Service in May 2022. Built on the Temenos Banking Cloud, this service helps financial institutions meet the growing demand for sustainable investing by streamlining the development of ESG-compliant products and reporting. Leveraging front office, market data management, and digital capabilities, the solution enables banks to quickly create investment products and deliver advanced digital experiences aligned with investors' values.

Major players in the impact investing market are directing their focus towards investing in new strategies to enhance market profitability. Impact investing involves making investments with the goal of generating positive social and environmental impact alongside financial returns. For example, in December 2023, France-based asset management company Amundi launched the Amundi Ambition Agri-Agro investment strategy, backed by a substantial €130 million commitment from Amundi's parent company. This private debt impact investment approach supports European enterprises in the agricultural and agri-food sectors, focusing on facilitating their transition towards sustainable, low-carbon models. The strategy aims to finance companies dedicated to preserving natural resources, fostering food sovereignty, and adopting environmentally conscious practices in their operations.

In January 2022, UK-based impact investing company M&G plc acquired Responsability Investments AG (responsAbility) for an undisclosed amount. This acquisition aims to strengthen M&G's international presence and private asset origination capabilities, focusing on sustainable investment in impact investing. Responsability Investments AG is a Switzerland-based company operating in impact investing.

Major companies operating in the impact investing market report are LeapFrog Investments Ltd., Sustainalytics, The Rise Fund, Revolution Foods Inc., Root Capital Inc., Triodos Bank N.V., MicroVest Capital Management LLC, New Ventures LLC, Acumen Fund Inc., Omidyar Network Fund Inc., responsAbility Investments AG, Calvert Impact Capital Inc., Capricorn Investment Group LLC, Toniic Network Inc., Bridges Fund Management Ltd., Veris Wealth Partners LLC, RSF Social Finance Inc., Sarona Asset Management Inc., ClearlySo Ltd., Elevar Equity LLC, Open Road Alliance, Shared Interest, SJF Ventures Management LLC, Big Path Capital LLC, Blue Haven Initiative LLC, Core Innovation Capital Management LLC, BlueOrchard Finance S.A., Lok Capital LLC, RENEW Strategies LLC, Capria Ventures LLC

North America was the largest region in the impact investing market in 2023. The regions covered in the impact investing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the impact investing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The impact investing market includes revenues earned by entities by mutual funds, exchange-traded funds (ETFs) and bonds. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Impact Investing Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on impact investing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for impact investing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The impact investing market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Illustrative Sector: Education; HealthCare; Housing; Agriculture; Environment; Clean Energy Access; Climate Change; Other Illustrative Sectors
• 2) By Enterprise Size: Large Enterprises; Medium And Small Enterprises
• Companies Mentioned: LeapFrog Investments Ltd.; Sustainalytics; The Rise Fund; Revolution Foods Inc.; Root Capital Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.