Funders
Funders will play a key role in achieving this strategic plan and realizing our vision of a future where all investments contribute to positive social and environmental impact. There are a number of recommended actions in this Roadmap that will need funding to develop, outlined below.
1. identity
Clarify the Roles of Various Types of Capital
What
Recognize and publicize the important roles of capital with different risk-return expectations
WHY
To take full advantage of the different impact investing strategies and types
who
Asset owners, asset managers, and research organizations
when
Immediately and ongoing
2. Norms and expectations
Update Fundamental Investment Theory
What
Refresh Modern Portfolio Theory and capital asset pricing models to incorporate impact alongside risk and return
WHY
To underpin the practice of integrating impact into investments
who
Academics, with support from funders and input from practitioners
when
Over the next five years
4. Tools and Services
Expand Impact Investment Banks
What
Expand available investment banking services tailored to impact investing, including capital raising, deal origination, structuring, syndication, and securitization
WHY
To facilitate the flow of capital and develop well-functioning secondary markets
who
Mainstream investment banks and boutique firms
when
Immediately and ongoing
5. education
Train Finance Professionals
What
Develop training programs on impact investing for financial industry professionals, such as wealth advisors and investment managers at large financial firms
WHY
To translate client demand into capital deployed by growing advisors’ awareness of impact investing opportunities
who
Industry associations of finance professionals (to develop third-party offerings), large financial firms (to develop in-house trainings) and business schools (to develop MBA curricula)
when
Over the next few years
6. Policy and regulation
Create an Environment Conducive to Impact Investing
What
Develop regulations that incentivize product development, impact measurement and reporting, and the provision of capacity-building support
WHY
Drive behavior change by shaping the environment in which impact investors and businesses operate
who
National governments, with support from practitioners and industry-advocacy groups
when
Varies depending on national or regional policy context