Our Annual Letter: The Future of the Impact Investing Field (2024)

Impact investing is at a crossroads. Our collective work now and in the years to come will determine the future of the field and its ability to generate innovative solutions at scale to the world’s greatest challenges.

The good news is that the market continues to evolve, growing in both size and sophistication. Last year, impact investing surged past the $1 trillion asset threshold, cementing its status as a mainstream impact investing practice. There is also a growing number of impact funds and a greater variety of impact strategies across investor types, asset classes and thematic focus areas.

The more sobering news is that the global challenges we seek to address by leveraging private capital for public good are also growing in magnitude and complexity. In fact, the annual funding gap for achieving the United Nations’ Sustainable Development Goals (SDGs) by 2030 is in the trillions of dollars.

The role of the U.S. Impact Investing Alliance as a field builder is ensuring the practice of impact investing scales with integrity. This work is guided by the belief that the principles of investing for positive and measurable social, economic and environmental outcomes, alongside financial returns, can be leveraged to manifest a more equitable economy for all.

Therefore, it is critical that we – alongside peers in the field – chart our future course with intentionality. The Alliance commits to advancing our mission guided by three intentions.

First, we must lean into transparency and accountability. We know that every investment has an impact, but that impact is largely opaque to stakeholders. Our work seeks to instill broader impact transparency as a waystation to impact accountability and, ultimately, impact equity.

Second, we must promote cross-sector collaboration. In the years ahead, hundreds of billions of dollars in federal funds will flow into communities across the United States to build sustainable infrastructure, clean energy solutions and thriving local economies. The successful and equitable rollout of these investments and programs will require the commitment and collaboration of the private sector.

Third, we must advance system-level thinking. Systemic problems, including intractable crises like climate change and widening inequality, require us all to consider our contributions to the solution. Impact investors must leverage all the tools at their disposal – beyond just the capital for which they are responsible – to protect the long-term viability of our social, economic and environmental systems.

As we bring the lessons of 2023 into the new year, the Alliance looks forward to advancing our mission rooted in these three intentions and in partnership with our peers across the field. Thank you to our funders and partners for their guidance and support. We look forward to another year working toward our shared vision for a more equitable and sustainable future!