Investing in networks increases influence

Published on : 03-07-2023

A global trend toward a new socially responsible and inclusive economic growth model is driving a rapid expansion of the impact investing industry Dr Candice Matthews explained that

private investors play a crucial role in financing the shift, which is necessary to prevent a repeat of the current global financial crisis.

Thus, there is a need for investment networks that connect various groups and advance the field. The fundamental objectives of these networks are to provide members with resources and support for generating financial and social returns

Generate chances for collaboration amongst industries. Share your knowledge on impact investments

Help define the standards and best practices of the field

The best impact investments will ultimately fit with investor objectives This implies that businesses and organizations should develop them with a distinct plan, a track record, and the means to execute. It also implies that these investments be supported by rigorous accountability procedures, such as performance indicators, external assurance services, and third-party monitoring and evaluation.

Increased awareness and skepticism regarding "impact washing" attributing impact to investments that are not warranted have contributed to the growth of the result investing industry over the past decade, as more mainstream asset managers have adopted the practice and more investors have demanded it In addition, better standards and transparency for impact measurement and management are aiding in the enhancement of the integrity of the sector.

As more investors and organizations adopt impact principles, a growing number of networks offer resources, including as finance and technical assistance. This includes the Global Impact Investing Network (GIIN), which holds the Investing for Impact Forum and collaborates with a variety of stakeholders to construct the infrastructure required to stimulate impact investing.

We can anticipate higher liquidity of impact-investment products and a broader selection of impact-focused funds as this infrastructure expands This will enable for more efficient and effective impact management, which should yield further evidence regarding which investments are the most effective at addressing global inclusion and sustainability challenges.