Impact investing in private markets could be as large as $2.1 trillion in assets under management, but only a quarter of that, $505 billion, is clearly measured for its impact, both for development impact and financial returns, according to the report Growing Impact—New Insights into the Practice of Impact Investing.
The report also highlights the enormous potential to invest for impact in public equity markets. Today, assets totaling about $10 trillion are actively managed and these strategies could be directed toward achieving impact. The publication includes trends in impact investing, survey results of investor practices, and 32 case stories from signatories to the Operating Principles for Impact Management on how they are implementing them.
The Operating Principles, launched in April 2019, were developed by IFC and leading impact investors. They require investors to measure, monitor, verify, and disclose their impact—creating market standards by which all signatory organizations must comply. They provide a distinct line between impact investing and other forms of sustainable and responsible investing.
The Operating Principles continue to attract investors, and the number of signatories continues to grow—there are now nearly 100 signatories compared with 58 at the time of launch.