PUBLISHER: The Business Research Company | PRODUCT CODE: 1675862
PUBLISHER: The Business Research Company | PRODUCT CODE: 1675862
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 $548.31 billion in 2024 to $631.7 billion in 2025 at a compound annual growth rate (CAGR) of 15.2%. The growth in the historic period can be attributed to social and environmental awareness, shift in investor values, emergence of impact metrics, rise of social enterprises, millennial and gen z preferences, institutional commitment.
The impact investing market size is expected to see rapid growth in the next few years. It will grow to $1288.07 billion in 2029 at a compound annual growth rate (CAGR) of 19.5%. The growth in the forecast period can be attributed to renewable energy transition, racial and gender equity, global resilience planning, circular economy initiatives, education and skill development. Major trends in the forecast period include technology and innovation, outcome measurement and reporting, social bonds and green bonds, collaboration and partnerships, nature-based solutions.
The rising number of millennial investors is anticipated to boost the growth of the impact investing market in the future. Millennial investors are characterized as a group that is less inclined to invest in traditional stocks. These investors are increasingly turning to sustainable investing to create positive change in addressing social and environmental challenges while consistently building wealth. They view impact investing as a superior method for contributing to social change and positive outcomes compared to conventional philanthropy, aiming for long-term improvements in society. For example, in April 2022, a survey conducted by Fidelity Charitable, a US-based independent public charity with a donor-advised fund program, included over 1,200 investors to assess their approach to investing in social change. The results indicated that around 61% of millennial investors engaged in impact investing, and 40% of those who had not yet participated expressed intentions to invest in impact initiatives in the future. Consequently, the increasing number of millennial investors is driving the growth of the impact investing market.
The rising competitive returns are anticipated to drive the growth of the impact investing market in the future. Competitive returns refer to the financial gains or profits generated by an investment or business that are viewed as competitive or comparable to those in the same industry or market. In the context of impact investing, competitive returns indicate financial gains that align with or rival those of traditional financial investments. For instance, in January 2024, according to gov.uk, a UK-based government agency, Venture Capital Trusts (VCTs) raised funds amounting to $1,123.46 million (£1,040 million) in the fiscal year 2021 to 2022, representing a 61% increase. Therefore, the rising competitive returns are driving the growth of the impact investing market.
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 include LeapFrog Investments Ltd., Sustainalytics, The Rise Fund, Root Capital Inc., Triodos Bank N.V., MicroVest Capital Management 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 2024. 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 2025 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.
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 forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.