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.