NordSIP Insights – Impact Investing Handbook 2022

    With the powers-that-be at the highest level calling for a global transition to a low-carbon economy, and technological innovations that can help lift millions out of poverty in the developing world, there is no shortage of opportunities – at least on paper. According to the latest figures from the Global Impact Investing Network (GIIN), the global impact market is worth no less than US$715 billion and growing fast. However, what seems like great news is tinged with the knowledge that the global finance gap in the world’s efforts to combat the climate crisis is somewhere between US$2.5 and 4.8 trillion.

    Successful impact investing involves stating clear, measurable, and intentional outcomes at the outset, and being able to accurately report the results to stakeholders.Therefore, impact investing has grown fastest within private markets, where all these things are easier to do thanks to majority stakes and direct oversight of company management. With liquidity constraints and longer investment cycles, this kind of impact investing hasn’t grown as fast as the demand to deploy capital at scale. Listed impact investment opportunities and green bonds have allowed this money to gather, but soon enough, impact-washers appeared endangering the credibility of the entire concept.

    In this third edition of NordSIP’s Impact Investing Handbook, we have assembled a broad range of insights from unique investors’ perspectives. Allianz Global Investors’ Matt Christensen challenges investors to define acceptable returns, UBS Asset Management’s Davide Guberti provides an in-depth update on Multilateral Development Bank debt, while Barney Coles at Capital Dynamics goes through the recent energy market shocks and what it means for renewable energy.

    Meanwhile, TLG Capital proposes an innovative way to provide capital to SMEs in Africa and we catch up with Sophie Robé at FIIND Impact on the fit of impact investments for faith-based investors and with Marte Løfman at Grieg Investor on the appetite of Norwegian investors for this asset class.

    Microfinance is one of the most concrete forms of impact investing and we investigated its current institutional appeal in Sweden. Last but not least, GIIN CEO Amit Bourri confirmed the need for scalability.

    You can download the publication here

    Table of Contents

    1. the editor’s word: Scaling up authentic impact
    2. On a Fasttrack to Meaningful Impact, an interview of Matt Christensen, Allianz Global Investors
    3. The Impact of Multilaterial Development Banks, by Davide Guberti, UBS AM
    4. Renewable Energy Trends & Responses to Recent Shocks, an interview of Barney Coles, Capital Dynamics
    5. Applying Innovative Structures to SME Lending in Africa, an interview of Isha Doshi, Amanda Kabagambe & Isaac Marshall, TLG Capital
    6. Having Faith in Impact Investing, an interview of Sophie Robé, FIIND Impact
    7. Nudging Institutions Towards Impact, an interview of Marte Løfman, Grieg Investor
    8. Sweden’s Microfinance Landscape at a Glance, an interview of Johan Guggi, Handelsbanken fonder, Viktor Andersson, Trill Impact & Camilla Löwenhielm, SEB
    9. Scale, Integrity & Gathering Momentum, an interview of Amit Bourri, Global Impact Investing Network (GIIN)