Impact Investing through Public Markets: A Primer for Change
Investing in Sustainable Development Goals (SDGs) is crucial for creating a positive impact, transforming the world, and achieving a sustainable future. The urgency has never been greater, with the COVID-19 pandemic highlighting the need for investment beyond ESG strategies that mainly reduce risk.
Most impact investing has been done in private markets and as a niche activity. Currently, most impact investing takes place in private markets, making it a niche activity. To mobilize private capital at scale and finance an annual SDG gap of $4.5 trillion, impact investing must become more mainstream and available through public capital markets. This is particularly critical for emerging market countries (EMCs), which are more vulnerable to climate and social challenges.
Although challenges to being an impact investor in public markets exist, a consensus is growing on how to address them. This report outlines core steps to financing a more sustainable and secure future through public capital markets.