We’re more than halfway through January, and several significant world events have shaken us already. Without getting into the details of the stories that are dominating conversations, newspapers and social media feeds, it’s fair to say 2026 is shaping up to be as unpredictable as 2025.
What this means is that for those of us in the impact industry – investors, field builders, standards setters, researchers – we have to move faster without losing our focus. I’ve always said that the role of impact investing is to find and fund solutions to problems, but by no means does this happen in a vacuum nor can this happen without peaceful international cooperation. Impact investing is one of many tools that the world needs in order to build a better future, and with Davos’ focus squared on exactly that, it’s an opportunity to elevate impact investing in a big way.
On that note, and per our annual tradition, I’m sharing the key trends we’re watching in the year ahead for impact investing:
1. A renewed focus on affordability brings an increased focus on pensions:
The momentum we’ve seen building around pensions’ participation in impact investing is going to significantly accelerate this year. As pensions represent the hard earned savings of working people, they have an embedded interest in stewarding capital toward the kinds of investments that represent those workers’ interests – like housing, healthcare and climate solutions. If you haven’t already, have a look at our recent research into how several pension funds and other asset owners are advancing their impact investing practices.
2. Countries prioritizing their own backyards means more place-based investing
2025 saw bold national government leadership in impact investing: The UK established the Office for the Impact Economy and Japanese regulators established the guidelines that enabled the Government Pension Investment Fund to pivot into impact investing. I expect we will see other countries, regions and cities follow suit this year and advance local investment modes to meet the needs and expectations of populations.
3. Families continue to ramp up impact investing activities
I expect to see continued engagement in impact investing from wealthy families around the world. This is taking many shapes – from family members getting more active in direct investing to family offices adopting institutional multi-asset class strategies to family businesses supporting long-term sustainability goals through impact investing. We continue to see growing engagement across generations and a growing proportion of families interested in pushing the frontiers of impact through long-term, holistic strategies and more flexible approaches.
4. Heavier emphasis on value for money means IMM is more important than ever
Regulatory pressures continue to heat up and budgets continue to tighten – all of which means a greater emphasis on value for money, especially in impact investing. This will bring a sharper focus on determining and prioritizing the things that matter most in terms of delivering better outcomes for people and the planet. Budget constraints, however, may lead to less spending tools or services, meaning people will be much more judicious and deliberate in their expenditures. That being said, I’m encouraged that the broad market acceptance of IRIS+ and the Impact Principles, as well as new tools like the Impact Quantifier and the Impact Target Setter, sets a strong baseline and helps keep IMM top of mind for investors.
5. Impact investing + international development
In the wake of last year’s drastic and devastating changes for international aid, I expect we’ll see much more emphasis on mobilizing impact capital for development in 2026. This expectation is informed in part by last year’s International Conference on Financing for Development (FfD4) wherein impact investing, IMM and the GIIN’s IRIS+ system were prominently featured in the official conclusions document which will guide development finance priorities for the next decade. This is a powerful signal that intentional, outcomes-driven capital deployment is becoming central to international development strategies.
6. Impact investors will harness AI for good
According to our 2024 research, only half of impact investors around the world are using AI, despite its rapid adoption across the financial sector. AI has the power to improve impact investing’s processes and practices in areas like due diligence, IMM, data convergence, frameworks and verification, among others. Beyond making impact investors’ jobs easier, AI also has the potential to improve impact outcomes as it’s been shown to democratize access to everything from essential services to education to financial security. However, we need to remain aware of how AI can widen disparities and further marginalize the communities we aim to empower if not equitably harnessed and distributed. With AI governance and regulation still maturing, impact investors have an opportunity to help shape its responsible use and extend the reach of its benefits.
Until then, wishing you and your loved ones a happy new year.
In community,
Amit