Driven in large part by the financial behavior of millennials, the impact investing market will reach $1.3 trillion by 2029, more than double its value in 2025, according to a market report out this week from the Business Research Company.
“The power of millennials is paving the way for the growth of the impact investing market. Recognized as investors with a more balanced perspective towards stocks, millennials are turning towards sustainable investing as a means to promote positive change in society while building wealth,” the report says.
The report cites research from Fidelity Charitable, which found that 60% of millennial investors have already engaged in impact investing. Of those who have not participated, 40% say they expect to make impact investments in the future.
Despite a political backlash against ESG and DEI, the report says the global impact investing market is on a growth path, and it’s not slowing down. The impact investing market is expected to jump from $548 billion in 2024 to more than $631 billion this year. Growth of nearly 20% per year is expected through the remainder of the decade.
The drivers behind the recent growth include a surge in social and environmental awareness, shift in investor values, emergence of impact metrics and rise of social enterprises, according to the report.
“Accelerators of future growth include the renewable energy transition, racial and gender equality initiatives, global resilience planning, circular economy approaches, and education and skills development,” the reported noted.
The report identified five key trends that are shaping the impact investing market:
- Technology and innovation
- Outcome measurement and reporting
- Social bonds and green bonds
- Collaboration and partnerships
- Nature-based solutions
The biggest player in the impact investing market in 2024 was North America. The report also examines other regions including Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa.
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With more than 15,000 reports from 27 industries, the Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Its flagship product, the Global Market Model, delivers comprehensive and updated forecasts to support informed decision-making.
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