The Global Impact Investing Network recently unveiled its latest brief titled "2023 GIINsight: Emerging Trends in Impact Investing."
Drawing upon data collected from more than 300 global impact investment institutions (including Bintang), this final installment in the 2023 GIINsight series highlights current topics such as the challenges faced by impact investors, perceived areas of progress, and deployment trends within the climate solutions space.
Bintang Capital Partners’ summary of the report is attached, but here are a few highlights we’d like to share:
Impact investors see significant industry progress, although challenges remain in terms of managing impact and navigating regulatory developments.
Investors noted that a lot of progress has been made in building “professionals with relevant skillsets,” with 27% indicating significant progress has been made in this area and 86% noting at least some progress has been made.
Impact Investors shared insights on how global macro events such as the climate crisis, COVID-19 pandemic, and rising interest rates affected their investment strategies.
Analysis on how global macro events have shaped and affected impact investing strategies, portfolios and performance: in 2022, 52% of investors’ financial performance were adversely affected by global macro events, whilst 22% experienced a decline in impact performance.
69% of investors intend to increase their capital allocations to energy strategies over the next five years; 60% plan to do the same for food & agriculture allocations; and 59% intend to allocate towards infrastructure investments.
Amidst the fast-changing macro environment, impact investors are redirecting their attention to emerging markets, with 42% of investors planning to increase their capital allocation to Southeast Asia.
Impact investors are pursuing climate solutions across their portfolios, with 72% of investors focusing on allocating capital toward clean energy generation technologies.
The full report is available for download at https://bit.ly/46k1yex - please feel free to reach out to us if you are interested to hear Bintang’s views.