A poll carried out by the CFA Institute in the US has revealed that two-thirds of investment professionals are unaware of impact investment.
Although a relatively new concept, impact investment is already being adopted by institutions and governments. The concept serves two purposes: to make money and to make positive changes in the world.
But the recent survey by the CFA Institute, an organisation that provides education to financial professionals, said only 15% of the 727 respondents were fully aware of the investment strategy. Sixty-six per cent were unaware, with the rest knowing a small amount.
Speaking to Blue & Green Tomorrow about the findings, Usman Hayat, CFA Institute content director, said, “The findings are significant because it shows that there is a need for education and development of professionals within the finance industry.
“Because impact investment is a relatively new field, it is not covered in formal education. Impact investment needs to score a big win in academia. It needs to win over the hearts and minds of the academics – the people who write the textbooks.”
He added, “Impact investment is the only [investment strategy] which says from the beginning, ‘I want to make a positive difference and make money’.”
Global executives met recently at the Impact Investment Policy Collaborative’s (IIPC) annual conference in Oxford and London, and constructed the London Principles: five key principles that governments should adhere to when providing policies in which impact investment could operate.