New Impact Investing Research from the Global Impact Investing Network
January 10, 2013
J.P. Morgan and the Global Impact Investing Network (GIIN), of which RSF is a contributing member, released this week Perspectives on Progress, a report that reveals the experiences, expectations, and perceptions of 99 impact investors in 2012, as well as their plans for 2013. The survey indicates a growing market, with respondents planning to commit USD 9 billion to impact investing in 2013, up from a total commitment of USD 8 billion in 2012.
Additionally, the vast majority of surveyed investors report that their impact investment portfolio performance is meeting or exceeding social, environmental, and financial expectations, with two-thirds of respondents principally pursuing market-rate financial returns. Investors surveyed for the report include fund managers, development finance institutions, foundations, diversified financial institutions, and other investors with at least USD 10 million committed to impact investment.
Though the impact investing market is relatively new, a majority of respondents report that some or many investments passed their initial screens in nearly all regions of the world, with U.S. & Canada, South Asia, and Latin America & the Caribbean providing the most robust pipelines to surveyed investors. However, respondents believe the market is still challenged by a lack of appropriate capital across the risk/return spectrum and a shortage of high-quality investment opportunities. Encouragingly, surveyed investors indicate that progress was made in these areas and across other indicators of market growth in 2012.
Respondents also highlight the importance of impact measurement for both raising capital and general industry development. Notably, 96 percent of respondents measure their social and/or environmental impact, with most utilizing third-party standards, including the Impact Reporting and Investment Standards (IRIS) metrics, offered as a free public good by the GIIN.