Investors
Investors 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 they are especially well suited to advance, outlined below.
1. identity
Share Best Practices for Impact Measurement, Management, and Reporting
What
Develop and promote clear best practices
WHY
To address the current fragmentation of approaches and lay a foundation for analysis, rating, and comparing impact across investments within a given theme
who
Field building organizations with consultants, supported by a broad swath of leading investors
when
Continue ongoing efforts, and test and adopt best practices throughout the industry over the next three to five years
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
Align Incentives with Impact
What
Update existing incentives structures so that allocation and compensation decisions reflect impact performance
WHY
To increase accountability and demand for impact
who
Asset owners and asset managers
when
Immediately, with steady uptake over five to seven years, enabled by standardized impact measurement practice
3. products
Develop Retail Products
What
Tap into the retail market for impact investing by expanding the number and range of retail products
WHY
To create universal opportunity to build wealth while having a positive impact
who
Asset managers, with support from regulators to create an enabling environment
when
May take several years, but should start immediately
3. products
Expand Institutional-Quality Investment Products
What
Large-scale funds covering a wide range of themes, sectors, and geographies that meet institutional investors' parameters
WHY
To channel interest from institutional investors into meaningful impact investments
who
Asset managers
when
Ongoing, keep expanding
3. products
Commit Capital to Emerging Fund Managers
What
Redouble efforts to capitalize and support new fund managers around the world
WHY
To meet the need for more vehicles to effectively channel capital into impact investments
who
Asset owners and service providers
when
Immediately and ongoing
3. products
Advance Blended-Finance Vehicles
What
Develop and promote effective vehicles that combine capital with different risk-return expectations to meet investee needs while furthering objectives of different investors
WHY
Provide capital to enterprises and business models that may not otherwise attract capital from a given investor type and help investors gain experience with impact investments by reducing their risk in the short term
who
All investors, driven by service providers who can develop such structures
when
Immediately and ongoing
4. Tools and Services
Build Analysis and Allocation Tools that Integrate Impact with Risk and Return
What
Build investment analysis tools and theoretical models that examine risk, return, and impact
WHY
To enable efficient evaluation of investment opportunities and help direct capital to the highest-impact opportunities
who
Service providers and asset managers
when
Begin immediately and continue to refine as more data become available
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