What is Impact Investing?

Impact Investing is rapidly expanding as a sustainable investment strategy that facilitates the convergence of social, environmental and financial goals. Impact Investing has reached an inflection point where it is now going mainstream and is estimated to experience exponential growth from its current size of $228 billion to between $3.3 trillion to $30 trillion by the end of the coming decade.

Since the term “impact investment” was introduced in 2007, the field of impact investing has grown and diversified in notable ways. Impact-fund managers have amassed significant sums with the tools available, continuing a trend that can be traced back at least five years. Researchers have engineered novel ways of tracking and reporting impact, giving investors greater confidence that their money is producing social benefits and helping entrepreneurs make more effective decisions about their strategies and business models.

A catalyst for the growth and mainstreaming of the Impact Investing Industry will be the development and adoption of credible Impact ratings systems like the one CAR Impact Investing Limited is developing.


Sustainable investing is no longer a niche marketplace and has grown by over 600 percent in the last decade and now has an estimated $22.87 trillion managed under sustainable investment strategies.

CAR Impact’s focus on Impact Investing means the Company is ideally positioned to benefit from changing economic circumstances which have created an unprecedented opportunity in the Impact Investing sector on which CAR Impact is concentrating. We believe that this focus coupled with favourable market conditions will enable CAR Impact to become one of the leading performers in the Impact Investing Industry.

As currently defined Impact Investing is only categorised as $228 billion of overall sustainable investing strategies, CAR Impact has the potential to convert the $10.3 trillion that is managed under ESG strategies into Impact Investments with its proprietary Impact ratings system.

CAR Impact will develop partnerships with major industry participants like the OECD in order to integrate with industry frameworks that will accelerate the development of the Impact market. For example, the OECD has developed a policy framework on Social Impact Investment (SII), which provides the analytical basis for international comparison. This comprehensive, holistic and cross-sectoral approach applies to donor and developing countries, and guides policy makers as they engage in SII-related policy design, implementation and review. The next phase of OECD work will generate:

(1) a framework for internationally comparable SII data,
(2) case studies on investment patterns and financing instruments,
(3) a map of the SII market in developed and developing countries and
(4) a map and review of policies to facilitate social Impact investment.

The ensuing report, including a global data reporting framework, will increase transparency in the SII market, with a view to encouraging the channelling of private investment towards more sustainable development.

Given the extent of the world’s social and environmental challenges, a major increase in the scale and reach of the Impact economy is urgently needed. Investors, entrepreneurs, governments, and other stakeholders will need to overcome their own practical constraints and prepare themselves to assume new roles. An essential first step will be to agree on a shared vision for the Impact economy. As the Impact Investment Industry matures, it will bring new rewards to stakeholders while enhancing the welfare of people worldwide.


What are DFI's?