Impact investing to grow
As noted earlier, RIAA's Responsible Investment Benchmark Report Australia 2021 calculates total assets under management for identifiable impact investing strategies at $29 billion in 2020, while total managed funds in Australia at that same point in time was almost $3.2 trillion.
In Australia, the specific impact investing space is dominated by green, social and sustainability bonds. RIAA's 2021 benchmark report noted that of the $29 billion in total AUM for impact investing, green, social and sustainability bonds comprised $26 billion. Real assets including property and infrastructure made up $2.2 billion, private debt comprised $287 million, public equity made up $195 million, private equity was $97 million, social impact bonds were $66 million and all other investments made up $44 million.
The RIAA benchmark, which covered developments during 2020, noted that "discussion with investment managers and analysis of survey responses indicates that there is a grey area when classifying sustainability-themed investing and impact investing," but also noted that the impact investing space grew 46% over 2019.
Many proponents of impact investing say that leveraging public markets is key to expanding potential positive impact across capital markets.
Editorial note: This is the second in a three-part series of articles brought to you by BNP Paribas Securities Services
Editorial note: This is the first in a three-part series of articles brought to you by BNP Paribas Securities Services
Editorial note: This is the second in a three part series of articles brought to you by Aviva Investors.
Editorial note: This is the third in a three-part series of articles brought to you by Aviva Investors
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