Impact Investing and the GIIN - "impact will be embedded not just in investment decisions, but in business and government decisions" Amit Bhatia

With 1200 delegates, twice the size of 1-2 years ago, it is clear that Impact Investing is a key topic for all kinds of organisations around the world.

Many of the top investment managers were there, and all saying that II and SRI (socially responsible responsible) is now essential to their approach with most saying their funds are increasingly aligned to the SDGs. Perhaps not all have cracked this but the intention is there. 

So II is no longer a niche but now a mainstream movement for change. In other words, investing with people and planet in mind to secure a mix of social and financial returns. Charity donations are still critical to address needs but II is more about the combination of opportunity and need - the opportunity to provide the products and solutions required to fill gaps for lower income people and alleviate social and environmental issues.

Many challenges remain of course – not least:

• consistent definitions of the different types of investing,
• improved measurement of impact (which is on its way with IRIS 2 and GIINs Impact Measurement Project)
• guidelines for robust reporting (arriving soon with impact weighted corporate accounts by end 2019)
• better collaboration between Philanthropy, the capital markets, NGOs and public sector to create and fund solutions (like Development Bonds and SIBs)

and as Jed Emerson said, more fundamentally, rethinking the meaning and purpose of capital with a focus on total value creation for all not just the few.

All this ties well into our purpose at CAF of growing Social Impact and ensuring we offer what’s needed to complement, and extend beyond, traditional donations.