IFC’s latest estimate of the global market for impact investments shows that $2.3 trillion were being invested for impact in 2020, of which $636 billion clearly have an impact management system in place, according to the report 'Investing for Impact: The Global Impact Investing Market 2020'.
Impact investing has seen a boost in popularity during the COVID-19 pandemic due to increased awareness of climate change and social challenges such as unequal access to healthcare and racial and gender inequality. In 2020, the market saw an increasing level of maturity compared to 2019 with more assets being invested with identifiable impact management systems.
In total, the report identifies a total of $2.3 trillion being invested for impact in 2020. This is equivalent to about 2 percent of global AUM. Impact investing remains a small market niche, but one that is attracting growing interest.
Additionally, the report shares findings on broader trends relating to investing for impact, including opportunities in publicly traded assets.