IFC Releases The 2020 Growing Impact Report
Hong Kong | 5th June 2020
IFC (International Finance Corporation), a member of the World Bank has released the 2020 Growing Impact Report.
According to the new IFC report, Growing Impact Report, the impact investing industry is continuing to attract investors in spite of the global recession caused by the COVID-19 pandemic. However, impact investing remains a small market, with a market size of up to $2.1 trillion.
” Impact Investors Attract Investors Despite COVID-19, market size remains small at $2.1 trillion “
In the years ahead, impact investing will face strong headwinds in the shape of tighter liquidity conditions, an aversion for risk and widespread economic disruption, all of which will threaten the viability of many impactful firms.
2020 IFC Growing Impact Report Highlights:
- Impact funds have a greater focus on investing in emerging markets
- 30% of the volume of impact funds was raised for projects in emerging markets for impact funds
- 20% was raised for emerging markets in conventional funds
Impact Investing Preference (By highest allocation)
- Financial inclusion
- Green or sustainable technology and products
- Energy or energy efficiency
- Agriculture and food processing.
IFC – Operating Principles for Impact Management
In April 2019, IFC had introduced the Operating Principles for Impact Management – which provide a distinct line between impact investing and other forms of sustainable and responsible investing. In total, 97 investors have signed up to the Operating Principles, with 19 investors coming on board this year, for a total of 39 new signatories since the initiative was launched.
Recent endorsements from investors in countries such as Mexico, Japan, United Arab Emirates and also include the world’s largest asset manager such as BlackRock.
Highlights
- Working to align impact measurement systems into a common core of metrics that will improve the ability of investors to compare impact performance across funds and institutions.
- In the last 6 months, 90% of the indicators in the leading measurement frameworks have been aligned
- Signatories must annually disclose the alignment of their impact management systems with the Operating Principles and pursue regular independent verification.
- Many investors are disclosing their impact assets under management for the first time in 2020.
The 2020 IFC Growing Impact Report calls on a wider range of asset managers and development finance institutions to manage funds for impact in a disciplined way, recommends the creation of further opportunities to invest for impact at scale, and encourages investors to continue to deepen their work on impact metrics.
IFC Links:
Philippe Le Houérou, Chief Executive Officer of IFC:
“There is increasing demand for more responsible capitalism. The current crisis is casting a harsh lens on inequalities and the importance of sustainability and could accelerate the demand for investments in jobs, gender equality, and environmental protection. These core values can ensure continued long-term financial performance.”
IFC – Operating Principles for Impact Management
97 Signatories
- Actis
- Acumen Capital Partners
- Adenia Partners
- Albright Capital Management LLC
- AlphaMundi Group
- Amundi
- AXA Investment Managers
- Belgian Investment Company for Developing Countries (BIO)
- Big Society Capital
- BlackRock, Inc.
- Blue like an Orange Sustainable Capital
- BlueOrchard Finance
- BMO Financial Group
- BNP Paribas Asset Management
- Calvert Impact Capital
- Capria Ventures
- Cardano Development (ILX Fund and TCX)
- CDC Group
- CDP – Cassa Depositi e Prestiti
- Christian Super
- COFIDES
- Community Investment Management (CIM)
- Cordiant Capital
- Credit Suisse
- Deetken Impact Sustainable Energy
- DEG – Deutsche Entwicklungsund Investitionsgesellschaft mbH
- Denham International Power GPLP SCSp
- Developing World Markets
- Development Bank of Latin America (CAF)
- Development Partners International LLP
- DWS Group GmbH & Co. KGaA
- Earth Capital
- Egyptian-American Enterprise Fund
- The European Bank for Reconstruction and Development (EBRD)
- European Development Finance Institutions (EDFI)
- The European Investment Bank (EIB)
- Finance in Motion
- FinDev Canada
- Finnfund
- Flat World Partners
- FMO – the Netherlands Development Finance Company
- Foundation Corporation Holdings
- Franklin Templeton Social Infrastructure Fund
- FullCycle
- GEF Capital Partners Latam
- IDB Invest, Member of the Inter-American Development Bank Group
- IFC
- IFC Asset Management Company (AMC)
- IFU – Investment Fund for Developing Countries
- Impact Bridge S.A
- Incofin Investment Management
- INOKS Capital SA
- Investing for Development SICAV
- Investisseurs & Partenaires – I&P
- Islamic Corporation for the Development of the Private Sector (ICD, Member of IsDB Group)
- Japan International Cooperation Agency
- Kohlberg Kravis Roberts & Co.
- LeapFrog Investments
- LGT Lightstone Europe LLP
- LGT Venture Philanthropy Foundation
- MicroVest Capital Management
- Mirova
- Mountain Nazca
- Multilateral Investment Guarantee Agency
- Norfund
- Neuberger Berman
- Nuveen, a TIAA Company
- Obviam
- Oesterreichische Entwicklungsbank AG (OeEB)
- Partners Group
- Phatisa Group Limited
- Proparco
- Prorsum Capital
- Prudential Financial, Inc., Impact Investments Group
- The Private Infrastructure Development Group Ltd. (PIDG)
- Quona Capital
- responsAbility Investments
- Sarona Asset Management Inc.
- SEAF
- STOA Infra & Energy
- Swedfund
- Swiss Investment Fund for Emerging Markets (SIFEM)
- Symbiotics S.A.
- The Osiris Group
- The Rise Fund
- The Rock Creek Group
- TriLinc Global, LLC
- Trill Impact AB
- Triple Jump
- Turk Ventures Advisory Limited
- UBS Group
- UOB Venture Management Private Limited
- U.S. International Development Finance Corporation (DFC) (formerly OPIC)
- VentureWave Capital Ltd.
- Water.org
- WaterEquity
- Zurich Insurance Group
About IFC
IFC – a sister organization of the World Bank and member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2019, we invested more than $19 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.
Visit: www.ifc.org
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