Major players in the impact investing market are Triodos Bank N.V, Sarona Asset Management, Omidyar Network, LeapFrog Investments, Revolution Foods, Acumen, Intellecap Advisory Services Pvt. Ltd, Vestergaard Frandsen, Unitus Capital, WaterHealth International Inc, LAVCA, REDF, Vital Capital Fund, Reinvestment Fund, and Community Reinvestment Fund.
The global impact investing market is expected to grow from $ 354.41 billion in 2021 to $ 423.46 billion in 2022 at a compound annual growth rate (CAGR) of 19.5%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, effecting many markets across the globe. The impact investing market is expected to grow to $ 823.83 billion in 2026 at a CAGR of 18.1%.
The impact investing market consists of sales of impact investing by entities (organizations, sole traders, and partnerships) that are used to generate some beneficial financial returns.Impact investing refers to a general investment strategy that helps investors make investments with the intention of generating positive, measurable social and environmental impact.
This investment is also shown as a company’s commitment to corporate social responsibility.
The main types of impact investing markets and illustrative sectors are education, healthcare, housing, agriculture, environment, clean energy access, climate change, and others.The education market involves the provision of capital to educational institutes, students, and parents of students to provide educational opportunities.
Impact investing offers expanding education opportunities for children and adults in developing countries by promoting investors to invest in public and private education institutes to provide good education and to fulfill the demand and supply gap in education. The various enterprise sizes include large enterprises, as well as medium-sized and small enterprises.
North America was the largest region in the impact investing market in 2021. The regions covered in the impact investing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The increase in millennial investors is expected to propel the growth of the impact investing market going forward.Millennial investors refer to a type of investor who is less likely to invest in stocks.
These millennial investors are adopting sustainable investing to aim for positive change in addressing social and environmental issues and to generate wealth constantly.Millennial investors believe impact investing is the best way to increase their share of social change and good as compared to the traditional forms of philanthropy to create long-term positive change in society.
For instance, in April 2022, according to a survey conducted by Fidelity Charitable, a US-based independent public charity with a donor-advised fund program, that included more than 1,200 investors to understand their approach to investing in social change, stated that approximately 61% of millennial investors participated in impact investing and 40% of non-participating investors are expected to make their impact investment in the future in the US. Therefore, increasing the number of millennial investors is driving the growth of the impact investing market.
Strategic partnerships and collaborations have emerged as a key trend gaining popularity in the impact investing market.Major companies operating in the impact investing sector are focused on strategic partnerships to sustain their position in the market.
For instance, in November 2020, RepRisk, a Switzerland-based company operating in environmental, social, and corporate governance, partnered with Apex Group Ltd. to offer ESG (Environmental, Social, and Governance) risk data through real-time analysis for their customers’ portfolios. This tool provides data on private companies and allows unrivaled ESG insights into private companies and their investors. Also, this tool helps them offer data insights to their customers to make better investment decisions. Apex Group Ltd. is a US-based company operating in capital investment. Moreover, in December 2020, Root Capital, a US-based impact investment company, partnered with Keurig Dr. Pepper for an undisclosed amount. With this partnership, both companies’ focus is on helping smallholder farm businesses to withstand the COVID-19 crisis. Also, it helps to recover medium-term businesses and re-imagine their strategies for growth and success in the long term. Keurig Dr. Pepper is a US-based producer and distributor of hot and cold beverages.
In January 2022, M&G plc, a UK-based company operating in impact investing, acquired Responsability investments AG (“responsAbility”) for an undisclosed amount.Through this acquisition, M&G plc aims to strengthen its international presence and private asset origination capabilities by increasing investments through sustainable investment capabilities in impact investing.
Responsability Investments AG is a Switzerland-based company operating in the area of impact investing.
The countries covered in the impact investing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The impact investing market research report is one of a series of new reports 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.