A recent survey has predicted that impact investment – which focuses on the difference that can be made by investing – will grow by 12.5% in 2013 to a total of $9 billion (£5.6 billion).
The findings from JP Morgan and the Global Impact Investing Network (GIIN), which have produced a joint report called Perspectives on Progress, come after $8 billion (£4.9 billion) was invested in this way in 2012.
The pair surveyed 99 impact investors who manage at least $10m in assets. The “vast majority” of respondents reported that their impact investment portfolio was meeting or surpassing social, environmental and financial targets.
Amit Bouri, managing director at the GIIN and co-author of the report, said, “Although investors have been making socially and environmentally motivated investments for quite some time, collaboration to develop a coherent and supportive market has increased significantly in the last five years.
“In the results of this survey, we see positive indication of a market growing in both size and sophistication, which we hope will encourage more activity and attract new investors to the impact investing field.”
Alongside the encouraging statistics in the survey, investors also said that the market still faced challenges – including lack of appropriate opportunities – but that great strides were made in eradicating these in 2012.