There is tremendous heat behind impact investing, thanks to a confluence of factors: the UNSDGs (United Nations Sustainable Development Goals); a new generation of “woke” investors seeking strong financial and social returns; and growing proof that impact strategies can deliver on both counts. Yet, the sector is still lagging when it comes to helping investors easily sort through their options.
The impact investment sector lacks universally accepted definitions, criteria and models to help investors achieve their optimal mix of double-bottom line returns. Also, cost-effective solutions for gathering and independently verifying impact data are few. These factors need to improve, which creates opportunities for firms to develop solutions.