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Energy transition and private markets driving continued appetite for impact
Despite apparent political headwinds and an oft-cited ESG (environment, social, governance) backlash in some parts of the world, investor demand for impact investing strategies has continued to grow. This has been driven by potential for positive diversification and the opportunity to access return opportunities across the global energy transition and via private markets.
According to the Global Impact Investing Network’s (GIIN) Sizing the Impact Investing Market 2024 report, there is currently close to $1.6 trillion in impact investing assets under management (AUM) globally, being managed by more than 3,900 organisations.
For the first time, GIIN was also able to calculate a compound annual growth rate (CAGR) for impact investing AUM since 2019. At 21%, this rate is well above that for the wider asset management industry and outstrips even the fast-growing private markets segment, albeit in both cases from a much lower base.
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