Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
Capital MarketsJanuary 4 2016

Impact investing: the social entrepreneurship revolution

The success of an investment is increasingly defined not just by risk and return but also its impact on society. Silvia Pavoni talks to the investors that demand purpose along with profit, and that are bringing about a revolution in the process.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

Discussions on how to mitigate climate change and alleviate poverty have moved from wholehearted but small activist groups to mainstream circles. And private sector capital is increasingly flocking to the causes – not just as a charitable move, as profits are deemed to be important.

Last December, in an unprecedented deal, 195 governments reached an agreement on global warming during the Conference of Parties in Paris; meanwhile the value of green bonds globally has reached a record $70bn and rising. Talk is being increasingly followed by investment in other areas too. The most optimistic estimate, by the Global Sustainable Investment Alliance’s 2014 review, has the total of funds invested in social and environmental ventures around the world in 2014 to be $21,400bn – about 27% of global gross domestic product that year.

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial
Silvia Pavoni is editor in chief of The Banker. Silvia also serves as an advisory board member for the Women of the Future Programme and for the European Risk Management Council, and is part of the London council of non-profit WILL, Women in Leadership in Latin America. In 2019, she was awarded an honorary fellowship by City University of London.
Read more articles from this author