Impact investing commitments grow in 2024

Letter from GIIN CEO and Co-Founder Amit Bouri

This year I’m watching a consistent trend of significant impact investing commitments from institutional asset owners — evidence of our industry’s growing and undeniable momentum.?

• The largest pension fund in the Netherlands, ABP, announced a plan to put 30 billion euros into impact investments by 2030, targeting climate, biodiversity and initiatives that foster a thriving, equitable society in the Netherlands.?
• The Church of England welcomed recommendations to create a 1 billion pound impact fund to address links to the moral crime of African chattel enslavement.?
• All $4 billion USD managed by GIIN-member The California Endowment will be invested to align with their values and support the communities they serve, making them the largest foundation to go all-in on impact investing.?

The California Endowment shared that its impact philosophy shifted with a simple idea: “If your foundation is using five percent of its [assets] under management to make grants, what is the other 95% doing?” This realization motivated the foundation to take bolder steps and align the real-world outcomes of its investments with their philanthropic goals. (And I’m excited to welcome Managing Director of Impact Investing at The California Endowment Amy Chung to speak about their commitment at our upcoming West Coast Impact Forum .)

These organizations embracing impact investing see the power of their capital to make lasting, meaningful change for the communities they serve. An ABP spokesperson put it best: “To provide its participants with a secure pension in a liveable world, ABP must engage in sustainable and responsible investing.” And while impact goals might start with beneficiaries, when investors prioritize people and the planet, their investments create a more liveable and equitable world for all.?

As we welcome these major impact investing commitments, I also look ahead knowing that real results require real execution. PGGM Investments , the asset manager of the major Dutch pension fund PFZW, announced that they are integrating impact across their entire portfolio in November — a strategy we call an impact lens . We’re seeing follow-through as they redefine their investment beliefs to shift the focus from risk to sustainable outcomes. When investors take real action on these plans, that represents the rigorous follow-through required by ambitious impact strategies.?

At the GIIN, our members will continue to collaborate on the tools, resources and networks needed to ensure meaningful outcomes for people and the planet. This year we’re hosting certification seminars in New York, Singapore , San Francisco and Amsterdam for investors interested in exploring or deepening their expertise in impact investing. These seminars show investors how to apply impact strategies to their entire portfolio and are approved by the CFA UK as precursors to their impact investing certification exam. We’re hosting our first regional forum in San Francisco on June 4 and our annual forum October 22 - 24 in Amsterdam. In addition to being wonderful gatherings to see familiar and new faces, these events foster the environments for peer learning and networking that our industry needs to scale with integrity.?

Continued leadership and cooperation is essential to make our impact stick. While each of us can make a difference in the world, it’s only by working together that we’ll solve complex global challenges and change systems in lasting ways.?

- Amit Bouri

News we're watching:

• In the U.S., investors are watching new regulatory guidelines for climate reporting from the SEC and we’re keeping a close eye on their progress. Currently, a federal court has halted the rule ?in response to a lawsuit from two fracking companies.
• Assets in net-zero funds increased by 18% this decade, to 341 billion euros , according to Phenix Impact Database’s Net Zero Funds Impact Report. However, the report also identified a 2.5% decarbonisation rate in 2022, falling far short of the identified 17.2% reduction rate needed to limit global warming to 1.5 C by 2050. Action on net zero commitments is critical to close this gap and avoid the worst impacts of climate change.?
• Systems change is a hot topic, but how do we move it from an abstract idea to actionable steps that impact investors can take to work toward bigger picture outcomes? Experimenting with new solutions and orchestrating networks are two of the most popular strategies, according to an article from 美国麻省理工学院 - 斯隆管理学院 .?
• Most states in the U.S. are creating climate plans to seek funding for climate solutions from the Inflation Reduction Act, hoping to increase their renewable energy supplies, sustainable agriculture practices and nature-based solutions like tree plantings.?

The latest from the GIIN:

• GIIN President Sapna Shah shared her career wisdom with Impact Investor on International Women’s Day.?
• This month GIIN CEO and Co-founder Amit Bouri discussed the critical role of impact investments to advance progress on the UN Sustainable Development Goals and global harmony at the Impact Investment Summit Asia Pacific in Sydney.
• Amit Bouri and Director of Institutional Engagement Christian Rosenholm head to Stockholm on April 11 to join Coeli for a conversation about how institutional investors and asset managers can begin their impact investing journey.?
• Join us for an impact investing certification seminar?in Singapore on April 18 . Attendees will learn how to apply an impact lens to their portfolio from Chief Research Officer Dean Hand .?
• Dean Hand will be speaking at AVPN Global Conference in Abu Dhabi on April 24 about women’s leadership in impact investing. The panel will highlight women’s leadership as capital allocators and managers, and their role in driving positive impact outcomes.?
• Register now for the GIIN West Coast Impact Forum , June 3 - 4 in San Francisco. This forum is an opportunity for investors to convene, learn and drive the future of impact investing. Topics include impact measurement and management, trends in high net worth impact investing and how endowments and foundations are seeding blended finance.?