Beyond the Pandemic: The Rise and Rise of Impact Investing
As the covid-19 vaccine rollout continues around the world, investors are starting to consider strategies for a post-pandemic world. One sector that has seen a particular surge throughout the crisis and indicates a great deal of future potential is impact investing.
Impact investing is an investment strategy that aims to generate specific beneficial social or environmental effects in addition to financial gains. The point of impact investing is to use money and investment capital for positive social results.
Also known as socially responsible investing (SRI), impact investing is not a new investment market. For example, investing to offset carbon emissions has been increasing in popularity over the past decade.
One of the Most Rapidly Emerging Markets of Recent Years
Although falling largely beneath the radar of most private investors, the impact investing universe has been growing exponentially over the past two years. Here we take a look where it came from—and where it is going.
Historically the preserve of high net worth and institutional investors, the emergence of listed impact equity funds has opened up the space to members of the public who want to make a difference with their money.
Another driver of growth has been the fact that impact strategies are more tangible and easier to understand than environmental, social and governance investing. The Global Impact Investing Network (GIIN) estimates the size of the market is $715bn in assets under management (AuM), compared to $114bn in 2017.
Pandemic has been Catalyst for Environmental Change
Covid-19 has been a catalyst for change, with an increased focus on carbon neutrality and a surge of ‘green deals’ worldwide. There is clearly a willingness among policymakers to channel money towards a sustainable post-pandemic recovery.
While there has been a global shift in consciousness as a result of the pandemic, investors are also trending much more towards opportunities that make a tangible – and positive – difference.
According to a survey carried out by GIIN in 2020, 88% of responding investors reported meeting or exceeding their financial expectations through impact investing. The growth of impact investing is only set to continue as more people see that it is possible to make a financial return while delivering positive benefits for society and the environment.
Barony Opportunity meets Criteria for Impact Investment
One of Ignite Invest’s most popular opportunities in the last few months is a project to build an eco-resort in Scotland. The UK is enjoying an increase in domestic tourism that is set to continue, with international visitors expected to return in volume when restrictions permit. The global ecotourism market is predicted to generate almost £75 billion by 2027, with the UK taking a significant slice of the action.
Set in some of the most stunning landscape found in the south of Scotland, this eco- resort is backed by the Scottish Environmental Protection Agency, (SEPA) and will be the UK’s first eco-resort of its type. The resort enjoys an historical location in Ayrshire that has significant conservational importance and harnesses specialist local knowledge of sustainable construction to bring the project to completion.
Since we started the raise on this project, the planning meetings have continued at a pace with the planning permission submitted on last Monday 24th May.
The impact investing sector is undeniably the fastest growing market we’ve seen for decades. This opportunity, by becoming a shareholder in the project to take through planning, provides you with affordable entry to this high-growth market. This opportunity is very nearly sold out but there is still a very small allocation left. To find out more click HERE.