The Bright, Young Future of Impact Investing

As I start my journey in impact investing, I can feel how important this area of finance is to young people like me. I've spent the last few weeks reaching out to my peers working in different areas of this space and have discovered the difference the younger generations are making, the new perspectives they are bringing to the table, and what the future of impact investing will look like with their participation in its development.

It's often the perception that younger generations have not been sufficiently included and involved in decisions that will shape our future, but the young professionals I spoke with are. Across their different backgrounds, aspirations, and interests, they unite around the intrinsic understanding of the urgency of our current global issues.

Including younger people in a team is not only a question of betting on talent but also a matter of the company's performance. It's something Jessica Burley , 27, highlighted to me, finding that working cross-generationally has proven particularly fulfilling. She experienced this through her collaborations with more senior partners at the early-stage venture capital firm Planet A Ventures . Keen to support diverse candidates breaking into impact investing, Jessica is the co-lead of Berlin's chapter of Climate Mosaic , an initiative empowering diverse founders and investors in the climate space. There, she finds that working cross-generationally fosters better decision-making and a more productive culture, and she hopes to spread this culture to the broader impact investing environment through this work.

These synergies between older and younger generations and the mutual benefits of these relationships do not always mean they share the same opinions. Indeed, traditional financial strategies and outlooks continue to permeate the debate amongst many seniors in the impact investing space. OBI's Jaime Farré Prats points out, "My generation was brought up with sustainability as a core value; they are completely obliged to nurture the sector, completely onboard with a new future", while "older generations may still see impact outcomes as an add-on to returns." He added that involvement from the younger generation isn't just needed, it is essential to the mainstreaming of the field, given that the impact space has transformed every industry from the bottom up and new ideas and input are required.

When asked about generational differences, Jim Chowdry , 35, a board member with the Center for Sustainable Finance and Private Wealth (CSP) North America , pointed out similarities, recalling a fond memory of a family trip to Ushuaia, Argentina. He describes the moment his mother learned about the destruction of this beautiful environment and how that gave them a shared understanding of the importance of restoring and protecting our planet and its habitats. For Jim, it showed that older and younger generations share the same goal: to do good for the planet we share. He said that when it came to impact investing, inter-generational differences are not as stark as in traditional investing, where risk appetite and trends followed vary. One risk he says none of us can afford to take is to continue exploiting the Earth's resources in the unsustainable way we have so far. He has taken a keen interest in regenerative agriculture to find ways of investing in better ways to care for the planet and heal what we have already damaged: 'We have to stop degrading the soil any further and help it heal." Like Jim, 29-year-old Laetitia Gombaud-Saintonge was pleasantly surprised by the willingness of experienced finance professionals to drastically change their career paths after years in the industry to support impact investing. She noted, "You can be surprised by older generations completely changing their course. Everyone shares and learns from each other."

Dan Chapman , 30, initially found it challenging to break into the impact investing space right after university but has since joined JSC Impact , a consultancy helping social entrepreneurs navigate the impact financing landscape. He has also angel-invested alongside his father, Brent, in two impact-oriented companies: one that processes plastic waste into concrete aggregate and another that lowers the cost of living for Latin American communities situated in food deserts . He understands that people like him must demonstrate to others coming out of university that aligning personal values with job aspirations is a real possibility and a rewarding career path. He believes younger generations should be encouraged to pursue their passion for making a difference, something he did in his MBA studies at the University of Notre Dame in the U.S. He is now advising an MBA and law student at his alma mater through a consulting engagement with social impact NGO Homeboy Industries . He hopes to guide more recent graduates into the field of impact and encourage younger participation.

Love for the planet and knowledge of what is required of us to save it is evident across all the people I spoke to.

Alexander Shadbolt , 24, is an ocean enthusiast, coining it "our biggest saviour," and is keen to point out the devastation that can occur if we don't protect it. Now working for London-based Future Planet Capital , he told me that breaking into impact investing requires hard work and connecting with the right people at the right time. It was his thesis at the University of Exeter, which focused on pricing externalities in the private market of sustainable investing, and later work at The Keynes Fund, Faculty of Economics, University of Cambridge , focusing on incentive systems within venture capital and sustainable investing, that opened up the opportunity for him at the firm, where he currently heads the impact division.

La?titia grew up in Guadalupe, where she nurtured a deep connection to the ocean and a love for her environment. Armed with her training as an economist and her passion for the ocean, she now works as an investor in SWEN Capital Partners 's ocean-focused fund.

In discussing his interest in planetary impact, one of Jaime's most formative experiences in the space was working with OBI portfolio company Naked Energy Ltd : "Their technology, combining solar thermal and photovoltaic systems, immediately caught my interest. It was eye-opening to see how such scalable innovations could directly influence the energy transition. Working closely with the team gave me direct access to their senior leaders, allowing me to observe their strategic thinking and understand the real-world challenges and opportunities in sustainable technology."

So, what does the future hold for young people in impact investment?

Jessica thinks that there will be continued technological advancement, with improved impact measurement tools and integrated scientific analyses with investments, similar to what is already being done at Planet A Ventures. Alex highlights just how much capital is still needed to bridge funding for companies going from early to a later stage, the so-called "Valley of Death", and how this capital has the potential to scale impact to the levels needed to make a substantial difference. Jim hopes the world of impact investing will become less politically biased, enabling more constant change with more governmental support. Meanwhile, La?titia points to recent changes in university courses towards more sustainability-focused curricula as proof that younger generations are mobilised and raising their voices, stating that "if you want to do something, you can actually do it".

Impact investing is still a relatively nascent investment discipline and is thus rarely an obvious choice for recent graduates entering the professional world. Indeed, it has yet to reach its full potential: the The Global Impact Investing Network estimates that the worldwide impact investing market will grow at a double-digit compound annual growth rate until 2030.

Having spoken with these driven and passionate professionals, I believe impact investing has a bright future. Their growth mindset, understanding of current societal issues, and sense of urgency around reversing the course we are on will be catalysts for accelerating projects and startups that have the potential to trace a different future.