Publication

The Impact Investing Market in the COVID-19 Context: Advancing Social Equity to Build Resilience

Response, Recovery, and Resilience Investment Coalition (R3 Coalition) September 15, 2020 Rachel Bass and Pete Murphy; Sponsored by the R3 Coalition, which is financially supported by David and Lucile Packard Foundation, the DOEN Foundation, Ford Foundation, John D. and Catherine T. MacArthur Foundation, Open Society Foundations, The Rockefeller Foundation, and Sorenson Impact Foundation.

COVID-19 has had devastating impacts on public health and the global economy and has disparately affected vulnerable communities around the world. In an effort to address the large-scale social and economic consequences of this crisis, the Response, Recovery, and Resilience Investment Coalition (R3 Coalition), which is managed by the GIIN as the organizing body, published a series of issue briefs focused on the impact investing market in the COVID-19 context. The first released an overview, the second explored due diligence, and the third describes investors’ support of enterprises during this time of crisis.

As the world continues to grapple with the lasting effects of the coronavirus crisis, it is increasingly clear that COVID-19 has emphasized and exacerbated long-standing disparities throughout society. This has driven more impact investors to re-imagine or amplify their efforts to address inequality and contribute to positive solutions that strengthen both market and societal resilience to future crises. To explore what this looks like in action, the R3 Coalition released the fourth issue brief in its series: The Impact Investing Market in the COVID-19 Context: Advancing Social Equity to Build Resilience, which explores the impact investing community’s ongoing commitment to building a resilient future. Based on interviews with 16 asset owners, asset managers, service providers, and social enterprises, this brief investigates the role of social equity in enabling that resilience and shares specific tactics impact investors have implemented or are considering implementing to address inequality.

Three key insights include:

  1. Investors play a key role, alongside policymakers and philanthropic actors, in addressing systemic inequality linked to poverty, gender, and race or ethnicity.
  2. Two common strategies cited by investors included ensuring diverse representation at their organization and among their investees and strengthening investees’ influence and reach among underserved communities.
  3. Yet remaining knowledge and resource gaps must be addressed for investors to consider inequality across each phase of the investment process.

Download “The Impact Investing Market in the COVID-19 Context: Advancing Social Equity to Build Resilience” below and scroll down for a full list of issue briefs published by the R3 Coalition.

About the R3 Coalition: Launched in May 2020, the Response, Recovery, and Resilience Investment Coalition (R3 Coalition) aims to streamline impact investing efforts that will address the large-scale social and economic consequences of COVID-19. This initiative is a collaboration across prominent impact investing networks – managed by the Global Impact Investing Network as the organizing body. The R3 Coalition is financially supported by a group of leading foundations including: David and Lucile Packard Foundation, the DOEN Foundation, Ford Foundation, John D. and Catherine T. MacArthur Foundation, Open Society Foundations, The Rockefeller Foundation, and Sorenson Impact Foundation. Along with the GIIN, Partner Networks include Aspen Network of Development Entrepreneurs (ANDE), AVPN, B Lab, Confluence Philanthropy, Association of European Development Finance Institutions (EDFI), European Venture Philanthropy Association (EVPA), India Impact Investors Council (IIC), Mission Investors Exchange (MIE), Synergos, Toniic, and U.S. Impact Investing Alliance. See more here >

The Impact Investing Market in the COVID-19 Context Series:

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