Stockholm (NordSIP) – At the same time as the Global Impact Investing Network’s (GIIN) published its “State of the Market 2025” report, which contrasted impact investments’ growth over the last decade with recent signs of contraction, investors flocked to Berlin for the GIIN’s 2025 Impact Forum. To better understand the state of the market, NordSIP reached out to several conference participants to hear about their perception of impact trends, conference highlights, their hopes and fears and their expectations for the future.
Overall, the conference feedback suggests that a degree of resilient continuity from some of the themes already present last year. Nature and biodiversity were repeatedly featured as well as a sense of market maturity both pragmatic and optimist in the face of ESG fatigue and pushback from the USA.
Scaling Impact, Nature and Values
The themes that stood out for the participants NordSIP reached out to centered on scaling up impact, natural capital and biodiveristy and the resilience of impact investors focus on value investing.
“In my view, the overarching theme this year centred on climate solutions, nature, and biodiversity. Discussions strongly reflected the industry’s growing recognition that addressing climate change and protecting natural ecosystems are inseparable from achieving sustainable and inclusive economic growth. Several sessions emphasised the importance of nature-based solutions, the integration of biodiversity into investment frameworks, and the need for scalable financing mechanisms to accelerate progress,” Nadina Stodiek, Co-Head of Impact Management at Schroders, tells NordSIP.
Hadewych Kuiper, Managing Director and Member of the Management Board, at Triodos Investment Management agrees. “The discussions about nvestment themes were overwhelmingly focused on natural capital, adressing biodiversity loss and nature based solutions,” Kuiper says. However, there were also deeper themes. The other, underlying theme beneath all the discussions taking place at the GIIN Impact Forum was the network and participants belief in the unshakeable values and common purposes of this investment community,” Kuiper adds.
The other theme, a recurrent one among impact investors, focused on how to attract more capital in what is effectively a niche market. “Several discussions centred around ‘How to scale impact investing’. The discussions considered how to move to larger funds, how to access more of the available capital for impact investing,” says Camille Savoie, Business Developer at responsAbility
ESG Fatigue and Pragmatic Optimistm
Moving from themes to the mood on the ground, conference participants acknowledged the ongoing pushback from politicians, especially in the USA but remained optimistic.
Triodos’s Kuiper summarises the mood as Concerned and optimistic. “The mood this year was more optimistic than last year. We felt a strong conviction also from the larger investors to push forward on in investing for impact, independently from politics and global developments happening,” Kuiper argues.
“I would say that the mood was mixed,” responsAbility’s Savoie agrees. “The ‘ESG fatigue’, developments in the US regarding development financing, and especially climate and gender-lens financing, were certainly on many people’s mind. Lower availability of concessional financing is looming and concerning for many players in the industry,” Savoie says.
“On the other hand, impact investing is no longer just a values-driven approach, it’s a proven business strategy. Data from GIIN and other organisations show that impact investments often match or outperform traditional assets in private equity, debt, and real assets. The scarcity in public financing mentioned just before may also serve as a catalyst to strengthen the role of private capital in impact investing. With concessional financing becoming scarcer, there’s a growing imperative, and opportunity, for private investors to step in more decisively. This moment could redefine the landscape by encouraging innovative structures and partnerships that make impact investments more scalable, resilient, and attractive to mainstream capital” responsAbility’s Savoie adds.
Schroders’ Stodiek echoes this sentiment. “I would describe the overall sentiment as ‘pragmatically optimistic’. There was a noticeable shift toward setting more realistic and measurable goals for the impact investing industry, acknowledging both the opportunities and challenges ahead. Asset owners on various panels reaffirmed their long-term commitment and belief in the potential of impact investing to drive meaningful change and deliver sustainable returns. The quality of discussions and level of engagement were particularly strong, reflecting a community deeply committed to impact integrity and continuous improvement,” Stodiek says.
Highlights
For responsAbility’s Savoie the highlight of the conference was blended finance. “The presentation of various blended finance models was instructive. The blended finance gallery served not only as a showcase of potential investment models for institutional investors, but also as a valuable platform for peer exchange. It enabled participants to explore practical applications, compare structures, and deepen one understanding of how blended finance can be tailored to different investor profiles and impact goals,” Savoie explains.
For Schroders’ Stodiek, Impact Measurement and Management (IMM) and, by association, impact data, stood out. “One of the standout sessions for me was the panel on “Next Frontiers in IMM” on Thursday, which brought together both asset managers and asset owners. It was a candid and insightful discussion about the successes and remaining challenges in measuring and managing impact effectively. The panel underscored that while data are crucial for demonstrating the effectiveness of impact investing, quality should always take precedence over quantity. The conversation served as an important reminder that the ultimate responsibility for delivering impact lies with companies across both developed and emerging markets. Data collection should be purpose-driven—requested only when it meaningfully contributes to decision-making and doesn’t detract from actually creating impact on the ground,” Stodiek
In line with the prominence of natural capital, Triodos’ Kuiper highlighted one such session as particularly insightful. “The session on portfolio resilience and going long on nature was interesting and asked the right challenging questions about the role of finance in systems transformation,” Kuiper argued.
More Indepth Discussions and Engagement
One wish conference attendees expressed was for there to be an opportunity to have deeper conversations about impact, financial performance and engaging with institutional investors.
“The Impact Forum is a valuable meeting point for asset owners and asset managers, yet I believe there is room for deeper dialogue on the connection between impact and financial performance,” Schroders’ Stodiek argues. “A more open exploration of how impact and returns correlate across asset classes could help the industry advance faster and more effectively. For example, Schroders’ recent research in collaboration with the Oxford Saïd Business School examined the listed equities impact universe and found evidence that impact may indeed be a driver of alpha. Expanding such conversations could strengthen the understanding that strong impact outcomes and solid financial performance are not mutually exclusive but often mutually reinforcing,” Stodiek continues.
“We would have welcomed more discussion on strategies and exchanges to engage mainstream institutional investors in emerging market investments, especially now that pioneering impact investors like us have established a credible and long track record in these regions,” responsAbility’s Savoie argues.
The Path Ahead
Looking forward, the focus was on the effect that the continued ESG pushback might have on impact investors the value added offered by commited and established impact managers and the evolution of data monitoring and benchmarking.
“The gap between smaller-scale impact investors and funds, and the larger, more sophisticated but necessarily more commercially interested impact investors may widen. Similarly institutional investors themselves are becoming increasingly sophisticated and might prefer to collaborate with experienced impact investment specialists who offer robust reporting and transparency, rather than other asset managers that lack genuine commitment,” responsAbility’s Savoie says.
Meanwhile, Triodos’ Kuiper highlighted the difficult political environment faced by impact investors. “Determined implementation by (impact) asset owners and those successful in fundraising. We are facing challenging times for those who are fundraising in light of the backlash against ESG and reduced public budgets,” Kuiper argues.
“As the industry continues to expand across regions and asset classes, we can expect increasing competition coupled with more collaboration between specialised impact firms with deep expertise and larger asset managers capable of scaling impact solutions with integrity. A key development will likely be the move toward centralised impact data monitoring and benchmarking, which will enhance comparability, improve product efficiency, and deepen insights into the drivers of both positive impact and financial performance. This evolution will enable investors to make more informed decisions, strengthen accountability, and ultimately bring the industry to the next stage of maturity,” Schroders’ Stodiek concludes.
