Investors’ eyes are on the prize with growth in impact funds

The Responsible Investment Association of Australasian’s latest Benchmark Report released Tuesday shows of the impact investment products in the market, impact funds saw the strongest growth in 2023.

“More investors are identifying and allocating to funds with a specific impact focus, indicating a trend toward more targeted and intentional investment strategies in New Zealand,” the report explains.

Investors particularly targeted impact areas like climate change, clean energy and affordable quality housing. Impact investing as a whole, which is largely driven by green, social and sustainability bonds, grew by 36% to $15 billion.

Outcomes detailed by impact investors surveyed included 1.4 billion cubic metres of water saved, adding 8904MW renewable energy capacity to the grid and 17,763 new social housing homes supported by lending.