ACTIONS FOR:

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. Behavior 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