Tue, Oct 19, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Global Impact Investing Network publishes standards guide

Wednesday, April 03, 2019
Opalesque Industry Update - The Global Impact Investing Network (GIIN), today launches its Core Characteristics of Impact Investing, four tenets that define the growing space of impact investing and will provide financial markets with greater clarity on what constitutes credible impact investing practice.

The Core Characteristics, which have been developed with input from leaders across the impact investing industry, will help investors understand the essential elements of impact investing, define the credibility of their practices, and consider the quality of the practices of potential investment partners.

"We are launching these Core Characteristics at a critical time in impact investing; the next couple of years will either see it remain on the fringe of the financial markets or press forward into the mainstream," said Amit Bouri, CEO and Co-founder of the GIIN. "To tackle issues on the scale of the Sustainable Development Goals and global climate targets, we must think much bigger and engage a much broader set of investors. Scale is essential. But it must be scale with integrity, to ensure we are achieving impact at scale, not just capital at scale. The Core Characteristics provide the greatest clarity to date on the elements that define impact investing, so investors entering the market will know exactly what to strive towards."

In addition to the Core Characteristics, the GIIN has recently released research on the estimated market size of impact investing. According to the GIIN's Sizing the Impact Investing Market report, the impact investing market size sits at an estimated $502 billion and is rapidly growing.

The central aim of the Core Characteristics is to provide clear reference points and practical actions to establish the baseline expectations for impact investing. "Our priority is to set appropriate expectations and define practices in a way that is useful to an investor building or deepening an impact investing portfolio, to support greater participation from both new and experienced impact investors," said Sapna Shah, GIIN Director of Strategy. "The current impact investing market is estimated to be $502 billion, which means trillions of dollars in the capital markets are still sitting on the sidelines, that could be put to work for people and the planet."

The Core Characteristics of Impact Investing include:

  • Intentionality: Impact investing actively sets out to positively contribute to social or environmental solutions by establishing clear impact objectives and thorough strategies to achieve these goals ahead of execution. This intentionality is at the heart of what differentiates impact investing from other complementary practices that focus on avoiding harm or mitigating risk.

  • Evidence-Based Investment Design: Impact investing utilizes evidence and impact data in the design of the impact strategies. Empirical data and research from finance and other industries and disciplines, including social and environmental sciences, provide the basis and support to establish impact objectives and validate results.

  • Impact Management: Impact investing requires commitment to impact measurement and management of an investment towards meeting intended objectives and delivering impact. This means using feedback loops whenever possible, to increase positive impacts over the life of the investment, and decrease risks or unintended negative consequences.

  • Contribution to Industry Growth: Impact investing necessitates a practice that is grounded in shared conventions and standards for describing impact goals, strategies, and performance. Impact investors share non-proprietary and non-private positive and negative learnings, evidence, and data, so others can benefit from their experience.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SPACs: Is the SPAC boom fizzling out?, SPAC merger mania: Companies that went public via blank-check merger in Q3, SPAC marketing heavily curtailed in House Democrats' draft bill[more]

    Is the SPAC boom fizzling out? From Crunch Base: SPACs may be fizzling out. Since February 2021, when the SPAC (special-purpose acquisition company) craze was booming, a market selloff has wiped out about $75 billion of the value of companies that went public using SPACs, according to

  2. New Launches: H.I.G. closes first European buyout fund at $2.4bn, Cheyne Capital raises another $1.18bn credit fund to invest in struggling European companies, Falfurrias Capital Partners raises $850m in oversubscribed fund, Alan Howard-backed 10T raises $750m for debut crypto fund, Crayhill Capital strikes $820m hard cap close for second credit-focused fundraise, Edmond de Rothschild's Eres IV eyes second close in H1 2022, Revaia closes Europe's largest female-founded VC fund, Octopus unveils UK Future Generations sustainable fund, TrueBridge Capital Partners closes seed & micro-VC fund I, at $170m, Federated Hermes launches low-carbon bond fund with Swedish partner[more]

    H.I.G. closes first European buyout fund at $2.4bn From PIonline.com: H.I.G. Capital closed its first European middle-market buyout fund, the H.I.G. Europe Middle Market LBO Fund, at €2 billion ($2.4 billion), a news release shows. The fund targets middle-market companies prim

  3. U.S.: Peter Thiel gamed Silicon Valley, Donald Trump, and democracy to make billions, tax-free[more]

    From Bloomberg: The meeting started with a thank-you. President-elect Donald Trump was planted at a long table on the 25th floor of his Manhattan tower. Trump sat dead center, per custom, and, also per custom, looked deeply satisfied with himself. He was joined by his usual coterie of lackeys

  4. Opalesque Exclusive: Female led team of veteran ESG investors to launch debut fund[more]

    Bailey McCann, Opalesque New York for New Managers: A female-led team of veteran ESG investors is preparing to launch a new fund early next year built on their ESG investing and advisory experience. Sustainable

  5. Institutional Investors: Vanderbilt University endowment records 57.1% return for fiscal year, MIT endowment logs 55.5% return for latest fiscal year, AP1 re-tenders $720m emerging markets small-cap mandate, Harvard, world's wealthiest university, sees endowment soar to $53.2bn, San Francisco shifts passive equity mandate to active BlackRock ESG strategy[more]

    Vanderbilt University endowment records 57.1% return for fiscal year From PIonline.com: Vanderbilt University's endowment returned a net 57.1% in the fiscal year ended June 30, according to a financial report on the Nashville, Tenn.-based university. The report did not provide benchma