Viewpoint: Why impact investing can help solve the world’s problems
By Mark Haefele
Addressing the world’s most pressing economic, ecological, and social challenges is a common theme at the World Economic Forum in Davos. This year was no exception, with impact investing widely discussed as a strategy for tackling them.
Impact investing, which seeks to generate measurable positive outcomes for people and planet as well as competitive returns, is a promising tool to support the United Nations’ framework for driving real, sustainable change, known as the Sustainable Development Goals (SDGs).
However, there are three major factors holding back these endeavours.
The first is a lack of awareness. A UBS survey published last year discovered regional differences in awareness of terms for investments that aim to contribute to the SDGs—64 per cent of participants were very familiar with the term “impact investing” in China, compared to just 21 per cent of US investors polled.