What is impact investing
Impact investing strives to address the world’s most pressing challenges and generate positive and measurable change while delivering sustainable financial returns. Credible investors within this industry use shared terminology, conventions, and indicators when describing and implementing their impact investment activities. They actively manage impact performance with evidence-based strategies and contribute to the greater impact investing ecosystem by sharing key learnings and innovations.
The rapidly growing impact investing market aims to address environmental and social challenges by providing capital in both emerging and developed markets. Impact investments can be made across the asset class spectrum with a focus on private debt and private equity, offering diverse and viable opportunities for investors to generate positive change alongside long-term returns. Investments are usually made in areas such as sustainable agriculture, renewable energy, biodiversity conservation, microfinance, and affordable and accessible basic services including housing, healthcare, and education. Successful, accountable and transparent impact investing requires an evidence-based impact strategy and a coherent management and measurement approach, implemented through a validated impact management system.
The growing field of impact investing is further defined by four key characteristics as set out by the non-profit organization Global Impact Investing Network (GIIN).
- Impact investors intentionally contribute to positive social and environmental impact by creating a clear investment thesis and transparent financial and impact goals.
- Impact investors use evidence and impact data throughout the investment lifecycle. This information leads decision making when identifying needs, building targets, designing investment strategies, and improving impact analytics.
- Impact investors manage impact performance, leveraging the ongoing data to optimize investments, identify risks, mitigate negative consequences, and transparently disclose outcomes.
- Impact investors contribute to industry growth by actively enabling more investors to effectively make impact investments. Contributing to this growth includes committing to shared conventions, approaches, and standards, while sharing non-proprietary learnings, evidence, and data.
Impact investing draws a wide range of investors. An attractive investment opportunity for institutional investors, including banks and pension funds, impact investing can assist investors to advance their core impact goals. Impact investments demonstrate earning risk-adjusted returns while creating positive environmental and social impact is possible.
Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.Global Impact Investing Network (GIIN)
We understand impact investing as an investment approach that goes beyond a pure orientation towards return and risk. Positive social and/or ecological effects should be as direct, intentional and verifiable as possible.Bundesinitiative Impact Investing (BIII)
Impact investment optimises risk, return and impact to benefit people and the planet. It does so by setting specific social and environmental objectives alongside financial ones, and measuring their achievement.
Global Steering Group for Impact Investment (GSG)
Impact investments are investments which, in addition to a financial return, also provide a positive contribution to the solution of ecological and/or social problems.Forum Nachhaltige Geldanlagen (FNG)
Finance in Motion: a world leading impact asset manager
A global pioneer of impact investing, Finance in Motion combines private and public capital into impact investment funds that span over 30 countries and 5 continents, combating climate change, strengthening biodiversity conservation, fostering the sustainable use of natural resources, improving livelihoods, and promote economic opportunities.
We advise and manage private debt and private equity funds in emerging markets to generate positive social and environmental impacts across a wide spectrum of topics. Our debt funds provide financing to qualified financial institutions for on-lending and directly to businesses and projects. Our equity funds take up minority ownership stakes in qualified, impact-driven companies, projects and financial intermediaries. All funds are actively managed by a specialist investment management team to ensure targeted development outcomes and stable returns.
The funds we initiate, manage, and advise, intentionally contribute to positive environmental and social impact respectively, demonstrated in each fund’s impact strategy. We harness impact data and evidence throughout our investment process. This includes selecting the challenges we address, how we execute our investments, monitoring, managing, and deeply understanding our investment’s impact and ensuring clear industry-aligned disclosures throughout this process. Our independently audited impact management system drives decision making and supports us in implementing our funds’ impact strategies while considering and mitigating potential risks and negative consequences. With credibility being one of our core values, we are committed to creating tangible impacts.
Stories of impact
Keeping impact investments flowing
When the World Health Organization declared a pandemic in March 2020, Finance in Motion, like many companies, was obliged to transform its operations seemingly overnight. Business needed to go completely online – requiring an unprecedented reimagining of activities that had always taken place directly in the field
We support initiatives to further enable the impact investing market to grow.
Through thought leadership and engagement in peer associations, we build the impact investing market to help sustainable finance reach its full potential and are constantly seeking new opportunities to make finance a force for good. As part of the Global Impact Investing Network (GIIN) Investor Council and member of initiatives such as the German Bundesinitiative Impact Investing, the Forum Nachhaltige Geldanlagen and the European Venture Philanthropy Association, we collaborate with other key players in the field to grow the impact investing market.
Impact investing is our core business, and making a difference is our specialty. We are firmly positioned at the forefront of developing and implementing new impact frameworks, environmental and social standards, and industry best practices. By speaking at conferences, giving lectures at business schools and universities, as well as providing our data and input to market studies we further support the impact investing ecosystem.
As a signatory of the Operating Principles for Impact Management (Impact Principles), the leading industry standard for integrating impact management throughout the investment lifecycle, we value transparency. Our impact management system was verified by BlueMark, an independent and specialized impact verification services provider. They conducted an assessment by benchmarking Finance in Motion’s impact management system against the Impact Principles. BlueMark’s findings reflect that Finance in Motion’s impact management system is greatly aligned with the globally recognized impact principles.
Invest with us
We specialize in channeling resources where they are needed to address the world’s social and environmental challenges. Join us in finding solutions.