The Global Impact Investing Network (GINN) – in partnership with JP Morgan – has published a new report “Perspectives on Progress” surveying impact investment trends. The survey indicates that respondents report that they committed $8 billion to impact investments in 2012, and plan to commit $9 billion in 2013.
As defined by GINN, “Impact investments are investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return. They can be made in both emerging and developed in markets, and target a range of returns from below market to market rate, depending upon the circumstances.”
96% of survey respondents say they measure their social/environmental impact of their investments and four out of five fund managers highlight the importance of impact measurement for raising capital. The survey measured the behaviors and attitudes of a total of 99 investment organizations.
Sixty-four percent of equity investor respondents stated that they had at least one, if not many, investments significantly outperform their financial return expectations while delivering the expected impact. When asked about their top motivations for impact investments, investors cited commitment to being a responsible investor, efficiency in meeting impact goals and financial attractiveness relative to other opportunities as the top three reasons for making impact investments.
Interestingly, Sub-Saharan Africa received the largest percentage of impact investments with 34%. Latin America and North America tied with 32% of impact investments. Oceania came in last with only 5% of the investments.