Impact Dispatch - March 2025

As forecasted, wealthy countries are making cuts to international aid in rapid succession: the U.K., Belgium and the Netherlands recently announced plans to reduce overseas spending, following decreases in France, Germany, Sweden and Switzerland. The sudden dismantling of USAID in the U.S. has garnered the most attention, but it is part of a global trend that will reshape how social and environmental issues are addressed in many countries. 

These moves mean cuts to programs that address poverty, malnutrition, disease and the effects of climate change. In this gulf of funding, impact investors are in a prime position to step up and work toward positive social and environmental outcomes, where possible, in the places and sectors that must chart a new path forward. 

Make no mistake, many of these cuts have significant implications on people’s lives that we are only beginning to understand. 

Impact investing is many things, but it is not a direct replacement for aid. Impact investors can’t solve every problem because not every human need can or should be looked at as an investable opportunity. But where impact investments can have tangible, positive benefits for the people most at risk, we must feel a sense of urgency. Impact investors can invest to create quality jobs, grow nutritious food, improve access to healthcare and build resilience to climate change. Our mandate to work toward a better future is clear now more than ever. 

Many impact investors are already making this difference, investing in markets others perceive as risky and seeing the opportunity in entrepreneurs from overlooked communities. These investors are working to improve livelihoods and create a world where all people live with dignity. Take the example of GIIN member Save the Children Ventures, which found innovative ways to overcome currency challenges using a debt swapping mechanism and invest in early childhood education in Rwanda. Or GIIN member Acumen, which invests in off-grid solar distribution companies in sub-Saharan Africa to bring electricity to some of the hardest to reach places in the world. Or GIIN member Small Foundation, which works to deliver financial access by investing in accelerator partners that support small and medium enterprises in Africa. These are just a few examples of the many GIIN members charting pathways for the financial system to have a positive impact on people’s lives and support sustainable development. 

Forty-three percent of investors plan to increase their allocations to emerging markets, according to the GIIN’s State of the Market 2024 research, and those investments are more urgent than ever. I’ve said before that we’ll know how much impact capital is enough when all people have access to good jobs, economic mobility and a healthy world to live in. At times such as this, that world may feel further out of reach. However, I hold onto a conviction in the power of the solutions our industry offers. When we invest for positive outcomes we deploy a tool that cycles money to scale impact quickly — allowing us to extend the reach of markets and tangibly improve lives. 

- Amit Bouri

• Leading impact investors speak to the need to step up and meet the moment in a recent piece by Simon Mundy in the Financial Times. Increases in investments are expected from wealthy individuals, family offices and investing agencies such as the Development Finance Corporation in the U.S. 
• The People’s Pensions, based in the U.K., has removed $56.3 billion USD in assets from State Street due to its moves away from environmental and social investing practices. 
• Al Gore and David Blood share the business case for continued investment in addressing the climate crisis, in a recent op-ed for the Wall Street Journal. 
• "At its core, impact investing is about creating tangible improvements and measurable outcomes that make a real and specific difference in areas that matter to many people." — Sean Gilbert, the GIIN's chief investor network officer, in a recent Impact Insider interview with Carsten Terp.
• Half of the world’s carbon emissions come from just 36 companies, a new report shows. Meanwhile, we reached new records on key climate change indicators, including averaged global mean near-surface temperature and the amount of carbon in the atmosphere, according to the World Meteorological Organization’s State of the Global Climate 2024 report. “While a single year above 1.5 °C of warming does not indicate that the long-term temperature goals of the Paris Agreement are out of reach, it is a wake-up call that we are increasing the risks to our lives, economies and the planet,” writes Secretary-General Dr. Celeste Saulo. 
• Capital markets are fostering growth and generating jobs in developing economies, according to new research from the IFC. The report says equity and bond markets are having a major effect on markets typically more reliant on bank lending. 
• The OECD reports 3.2% growth through the second half of 2024, and warns of risks to continued global growth including inflationary pressures, consumer sentiment and policy uncertainty. 
• The Impact Assets 50 2025 are out, sharing 50 emerging, established and emeritus impact asset managers making a difference in our industry.
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• The deadline to submit your response to the impact investor survey has been extended to March 31. Join the investors who have contributed to the GIIN's critical survey efforts. Your input will help shape the future of impact investing and provide the transparency needed to move the market forward.
• The GIIN West Coast Impact Forum and Investor Training will take place April 15 - 16 in San Francisco. Check out the recently released agenda and secure your spot. 
• Looking for a career that drives real impact? The GIIN impact investing job board is a resource for professionals seeking careers with organizations committed to rigorous impact and sustainable solutions. Featuring opportunities across sectors and regions, the platform highlights roles from industry leaders dedicated to scaling impact investing with integrity.
• Share your feedback on the GIIN’s new climate solutions investing framework, designed for asset owners to identify and prioritize among climate solutions investments that contribute meaningfully to global climate goals.
• Participate in the public comment period for the IRIS+ marine resources and conservation management theme by sharing your feedback by April 22. 
• In February, the GIIN welcomed two new members: Adenia Partners Ltd and Web City Properties.