Impact Investing Scores $60B in Sustainable Assets

Jul 13, 2015 4:00 PM ET

Impact Investing Scores $60B in Sustainable Assets

Activity in the financial sector defined as responsible investing or socially responsible investing, has gotten a new term to fit a fast-growing, related practice: impact investing. Impact investing describes efforts that provide a return on investment while focusing on social and environmental issues. Criteria for the projected profitable outcomes of targeting such issues are an integrated component of the investment process. RI or SRI also includes negative criteria as part of its decision making.

Since 2007, impact investing has been on a recent, rapid upward rise. This year’s report by the Global Impact Investing Network and J. P. Morgan, its fifth annual such survey, polled 145 global major fund managers, foundations, and financial institutions. It found $60 billion in sustainable assets under management, a 23 percent increase over the previous year’s total, which was an increase of nearly 20 percent over the year before. Impact investing is now being underwritten by the Bank of America Merrill Lynch and Goldman Sachs, and funds such as Calvert Investments, the Rudolf Steiner Fund, the Case Foundation, and HIP Investor, among others. This accelerating activity is sure to develop some innovative investment models.

I’m John Howell for 3BL Media.

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