This week saw the gathering of 1200 global impact investors and professionals in Amsterdam for the 10th annual Global Impact Investing Network Forum. The forum, where a wide range of impact investment topics are tabled, began with barely a hundred attendees. Now, ten years later the growth seems to be directly related to various areas garnering societal attention – The UNs global goals, global inequalities and climate change, to name a few.
Impact investments have the intrinsic ability to not only support these areas but also help investors and businesses become more responsible. This is achieved by placing an increased focus on non-financial risks and objectives through a measurable approach.
The view that non-financial risks and objectives can no longer be ignored was one shared by many of the speakers and panelists at the event. The core thinking behind impact investing is not to force investors to make an impact but rather to ensure that the investments match and align with the investor’s intentions.
This means that investors are increasingly considering non-financial objectives and risks when evaluating their current and future portfolio compositions. One example that many agree on these days is climate change risk, a topic that is attracting increasing attention in many different contexts.