In the realm of renewable energy, SWFs are acknowledging the reality of climate change and its potential impact on economic growth and financial returns (IFSWF 2020).
This sector represented 21% of SDG deal count and 31% of the deal value, equivalent to USD 11.9 billion, signaling a shift toward investments that address environmental concerns while also offering stable returns.
Key investments in this area, such as the Abu Dhabi Investment Authority’s stake in Sempra Infrastructure Partners and the Norwegian Government Pension Fund Global’s ventures into offshore wind farms, highlight SWFs’ growing commitment to combating climate change and supporting the energy transition (TIL, 2023).
The Business of Impact Investing in 2023
Impact investing is a form of investing that believes that every dollar invested can make a difference, while producing a profit. Over the past 20 years, impact investing has undergone a remarkable evolution, driven by a confluence of societal, economic, and technological factors. These influences have propelled impact investing into a crucial mechanism for addressing societal needs, traditionally the domain of public funding. In 2022, the impact investing market sat at US$1,146 billion, growing at a healthy compounded annual growth rate (CAGR) of 29% over the last four years. This special report features interviews with thought leaders in the impact investing space, and offers an insightful perspective on the current and future state of impact investing, its challenges and opportunities, and highlights case studies of investors, social enterprises, and the impact they are having on the world.