Closing the $4 trillion annual SDG financing gap is feasible with a strategic reallocation of less than 4% from the $112 trillion global asset pool.
Impact investing, now at $1 trillion, is central in this endeavor, underscored by its additionality—essential for meaningful progress towards the SDGs.
This shift transcends basic capital injection, aiming for smart allocations that yield both financial returns and tangible positive impacts.
The essential change lies in recalibrating investor mindsets: prioritizing additionality and sustainable development as fundamental investment criteria.
This represents a significant pivot in global financial strategies towards a more sustainable future.
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.