The first edition of the Impact Finance Barometer was launched at the 3Zero Global Forum on September 2, 2021.
This publication presents key figures and trends in impact investing and financial inclusion around the world. With $715 billion in assets under management in 2020 by more than 1,700 investors worldwide, impact investing continues to grow despite the Covid-19 crisis. However, the need for financing is greater than ever. As the OECD reminds us in a recent report, the global Covid-19 pandemic has increased the funding gap for the Sustainable Development Goals in developing countries. This gap has in fact increased by 33%, from $2.5 trillion (trillion) in 2019, to $3.7 trillion.
Yet there is no shortage of money. The total capital managed by institutional investors (banks, pension funds, etc.) is estimated by the OECD at $100 trillion. Impact investing therefore represents only a tiny part – less than 1%, with 715 billion in 2020 – of available capital. Redirecting only 10% of these financial flows to impact projects would allow for a large part of the financing of social and environmental transitions.
But how can we collectively achieve this? What are the most effective tools and regulations to accelerate the development of impact finance? How can we mobilize all the actors in this necessary movement? This first edition of the Barometer examines, through case studies, expert analyses and interviews, the levers to be activated to finance the Sustainable Development Goals by 2030.
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