For six decades, IFC has been at the forefront of impact investing in emerging markets. Over the years, others joined us in the search for impact and returns. We work with a wide range of private investors and development finance institutions to mobilize the trillions of dollars in financing necessary to achieve the Sustainable Development Goals (SDGs), including from investors motivated by impact as well as financial returns. And we collaborate with other institutions and investors to help the impact investing market scale with integrity and discipline.

What is Impact Investing?

Impact investing is an approach that aims to contribute to the achievement of measured positive social and environmental impacts. It has emerged as a significant opportunity to mobilize capital into investments that target measurable positive social, economic, or environmental impact alongside financial returns. A growing number of investors are incorporating impact investments into their portfolios. Many are adopting the SDGs and other goals as a reference point to illustrate the relationship between their investments and impact.

The impact investing market is relatively new but is growing rapidly, and is making progress in converging towards common frameworks for managing investments for impact. Some $2.3 trillion of assets have an intent for impact, of which $636 billion of these assets clearly have impact management and measurement processes in place. More than $400 billion is managed in accordance with the Impact Principles, the market standard for how to manage an investment portfolio for impact. Many of these investors use the Joint Impact Indicators to measure and report on progress.

What are the Impact Principles?

IFC—in consultation with a core group of external stakeholders—developed the Operating Principles for Impact Management, which are now followed by over 140 privately and publicly owned funds and institutions. These Principles support the development of the impact investing industry by establishing a common discipline around the management of investments for impact, and promote transparency and credibility by requiring annual disclosures of impact management processes with periodic independent verification

What are the Joint Impact Indicators?

The Joint Impact Indicators are a harmonized set of indicators for key impact themes – climate, gender and job creation – used by a wide range of impact investors. They are aligned with the leading impact indicator sets: IRIS+ and HIPSO.



Opportunities for Investors

  • AMC funds:
    IFC’s Asset Management Company (AMC) offers investments in IFC equities and debt, and has raised $10 billion across 13 funds since 2009.
  • Equity co-investments, especially in technology investments
  • Syndications
  • MCPP:
    AMC’s Managed Co-Lending Portfolio Program (MCPP) allows institutional investors the opportunity to passively participate in IFC’s future loan portfolio. Through the platform, we leverage IFC’s origination capacity and deep market knowledge to source opportunities for third-party investors to co-lend alongside IFC on commercial terms. Piloting and implementing such co-investment platforms provide a key contribution from development finance institutions such as IFC with a focus on the private sector.
  • IFC bonds:
    Green bonds and Social bonds