The Global Impact Investing Network (GIIN) today released its Sizing the Impact Investing Market report, an in-depth analysis of the current size and composition of the impact
investing market. The GIIN estimates the current size of the global impact investing market to be $502 billion.
Although impact investing has become increasingly popular in recent years, with many major financial firms building impact investing practices, a clear estimate of the market’s size has been difficult to capture due to a lack of available data and the fast-evolving nature of the industry. Representing the most comprehensive study to date, the Sizing the Impact Investing Market report is based on the collation of AUM data on more than 1,300 impact investors around the world. These include asset managers, foundations, banks, development finance institutions, family offices, pension funds, insurance companies, and others.
“As the impact investing industry develops, it is critical that we further develop our understanding of the contours of the market – and one of the most important and fundamental data points about any industry is its current size,” said GIIN CEO and Co-Founder Amit Bouri. “This research gives us insight into the current state of the market, and it will also lead to deeper conversations about the market’s future potential.”
The market-sizing research not only establishes a fundamental understanding of the market’s current scale but also serves as a first step in a GIIN initiative to ensure the impact investing market continues to scale with integrity. The publication of this landmark report will lead into the launch of two critical pieces of industry infrastructure that are designed to maintain the integrity of practice. On April 3, the GIIN will launch the Core Characteristics of Impact Investing, which outline the elements that define impact investing and distinguish it from other complementary investment approaches. IRIS+, a comprehensive, metrics-based system for impact measurement and management that enables data comparisons across an impact investing portfolio, will launch in late-spring.
“The results of this study underscore the momentum of impact investing, but also the need for continued growth across the responsible investing landscape if we are to address global challenges like those outlined in the Sustainable Development Goals,” Bouri continued. “As the industry grows, we need to be sure it scales with integrity—ensuring good intentions translate into real impact results.”