WASHINGTON, June 25, 2020 —The 100th investor has signed up for the Operating Principles for Impact Management , underscoring the commitment to invest for positive social and environmental impact despite the global recession triggered by the COVID-19 pandemic.
The Impact Principles are IFC-led market standards for how to manage investments aiming to achieve positive impact alongside financial returns. Just over one year since IFC worked with a core group of impact investors to develop and launch the Principles, investors remain committed to impact investing, with 22 new investors joining this year.
“Thanks to the Impact Principles, we are bringing rigor to the movement. This will help prevent impact washing and assure asset owners and managers that their investments can deliver the intended impact. These efforts could potentially unlock trillions of dollars to positively benefit societies, jobs, gender equality and the fight against climate change,” said Philippe Le Houérou, Chief Executive Officer of IFC, which is the host of the Secretariat for the Impact Principles.
“The Principles continue to gain momentum with global investors, and the community of signatories is increasingly diverse, now representing 30 countries across six continents, with recent adoptions from investors in Brazil, Costa Rica, Mexico, India, and the United Arab Emirates,” said Diane Damskey, Head of the Secretariat for the Impact Principles.
The signatories include large asset managers such as BlackRock and UBS, specialist impact fund managers such as Leapfrog and AvantFaire – the 100th signatory – and asset owners such as Christian Super and Zurich Insurance Group.
There could be as much as $2.1 trillion invested for impact today, according to a recent IFC report, Growing Impact—New Insights into the Practice of Impact Investing . But only $505 billion is invested with clear impact measurement systems in place, showing the need for wider adoption of the Impact Principles. According to IFC research, the impact investing market has scope to grow much larger—potentially $26 trillion—to meet investor demand.
The Impact Principles are helping to ensure that investors are making a positive impact on the ground, where the need for jobs, inclusive growth, and environmental protection is more critical than ever. Signatories must annually disclose the alignment of their impact management systems with the Principles and obtain regular independent verification. In 2020, many signatories are disclosing their impact assets under management for the first time. Many of these disclosures are accompanied by statements from independent verifiers, giving investors in these impact products assurances that what they read in the disclosures is being consistently implemented. The signatories have become a network collaborating to develop best practices that will further define what it means to invest for impact.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2019, we invested more than $19 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
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