Impact investing has seen strong growth in recent years, with the current market estimated to be worth $715 billion, according to the Global Impact Investing Network (GIIN), however access to the sector by retail investors is still limited.
“All the data is pointing to a great deal of demand amongst the broader population for opportunities to put your money to work, to invest in a better world,” Amit Bouri, chief executive officer and co-founder of the GIIN, tells Impact Investor.
“But the financial services market has not stepped up to service this demand with a diverse array of high-quality impact investment products,” says Bouri.
Although there are ample impact investment opportunities for high net-worth individuals, “we have seen that there are challenges around what investments you can make available to investors of much more modest means,” says Bouri.
“You can’t just go to your retirement accountant and say, ‘Hey, I’d love to have my money invested in addressing climate change or to help address inequality around the world’.”
“What we would love to see is that intermediaries that are established, so banks and 401K providers, start offering products to their customers that are focused on positive impact,” he adds.