ACTIONS FOR:

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. Behavior 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