FIRST REPORT ON IMPACT INVESTING IN THE NORDICS
The One Initiative conducted in spring 2019 a survey to analyze the Nordic market of impact investment. The aim was to get the needed data, overview and insights to understand what impact solutions are the most promising with the eyes of investors.
All kind of investors in the Nordic – from business angels and family offices all the way up the supply chain to VC’s and institutional funds – participated in the first Nordic survey on impact investing.
This has become the first quantitative and qualitative analysis ever on how Nordic investors approach impact investments.
The first key findings were from ‘Impact Report Nordic Investors’ was presented to the world 20 June 2019 during the Nordic Impact Business Summit. The final report was published in September 2019 and launched at several occasions world wide in the second half of 2019.
Impact Investments are made with the intention to generate positive, measurable social and environmental impact alongside a financial return. It is growing in the Nordics. 92% of Nordic investors, both private and institutional, perceive impact investing as a good way to solve shared societal challenges.
However, as an investor you do not have to compromise your financial return when seeking a positive impact on the world. 83% of Nordic investors, investing in impact, expect their impact portfolio to deliver at or above the market rate of return.
Some investment opportunities are more attractive to investors than others. Nordic investors focus their capital mostly in their local market, and on sustainable development in areas of renewable energy, healthcare, industry innovation and smart cities. Despite SDGs being widely implemented in the Nordic society and business environment, few investors seriously use them to develop their impact investment strategy.
Since this is a new field of financing and an immature market there are still challenges and obstacles to overcome before we see impact investment go mainstream. 67% of Nordic investors ask for more data on past performance of impact portfolios. However, 70% are not yet measuring or reporting on the impact of their own portfolio.