In 2007, the “impact investing” movement was formally launched, as a group of pioneering investors looked to formalize a practice that was showing potential to change the world. Since then, the industry has continued to grow and capture the attention of leading investors, innovative entrepreneurs, and world leaders. Impact investing is now seen as essential to bringing impactful ventures to life—wind turbines in Mongolia, quality schools in Kenya, and green affordable housing complexes in New York City are just a few of the types of projects being fueled by impact investors.
Terrific progress has been made over the past decade as a result of growing interest in and demand for private investments to support market-based solutions to social and environmental challenges globally. Impact investing is well on the way to becoming a mature market – one that now has clear potential to build a better world for all. However, more needs to be done. The global capital markets are worth trillions of dollars, and against this, impact investing is still just a drop in the ocean.
THE MARKET ROADMAP PROJECT
Through the Market Roadmap Project, the GIIN is leading a broad consultative initiative to identify the bold actions needed to exponentially enhance the scale and effectiveness of impact investing across the world. This Roadmap Project, which will serve as a launch pad for a global campaign to shape the future of impact investing, focuses on key market development components, such as:
- What infrastructure, tools, products, and resources are needed for industry growth and effectiveness?
- What is needed to further catalyze impact investing commitments from institutional investors?
- As more large scale investors build impact investing practices, how does the industry ensure the integrity of practice is preserved?
- What does the future of impact measurement and management look like?
- How can different types of investors collaborate for greater impact?
- How can impact investing be made accessible to all investors?
Most importantly: how do we reshape investor mindsets such that capital markets are widely used to intentionally advance the wellbeing of people and of the planet?
In seeking to address these questions, the GIIN is pleased to work with Deloitte, who will provide valuable guidance throughout the Market Roadmap Project by supporting research design and data analysis, designing and facilitating gatherings of key stakeholders, surfacing strategic considerations for field-builders, and assessing implications of key findings for the broader market, among other activities.
Ten years ago, a small group of visionary investors launched a movement to develop a coherent impact investing market – one that has now reached a stage of growth that holds tremendous potential for a broad reimagining of the way the world’s capital markets work.
Not only has the industry advanced substantially in the last decade, but the surrounding context has changed as well. Customers are demonstrating that they value green products and responsible businesses. Employees are demanding more meaning from their careers. And the private sector is increasingly being held accountable for the social and environmental impact of their work.
On an even larger global stage, the United Nations Sustainable Development Goals (SDGs), which were launched in September 2015, are acting as a clarion call for impact investors. Meeting these ambitious targets by the year 2030 will require trillions of dollars from the capital markets.
Thus, the time is ripe to take stock: to assess the progress that has been made to date, evaluate what gaps and challenges remain, and identify what is required to propel the market forward.
WHAT WILL BE THE OUTCOMES?
The GIIN will publish a report in early 2018 detailing an action-oriented list of initiatives designed to mobilize the entire community towards shared goals in accelerating the impact investing industry into the next stage of market development. This will mark the launch of a global campaign, where we will work with other organizations that share a field-building orientation to begin to bring these initiatives to the market.
Join us in this ambitious campaign to redefine capital markets!