LONDON - The idea behind investing for impact is to deliver positive returns to an investor’s portfolio while at the same time improving society. And while different from funds that go directly to innovators developing new environmental technology, the overall market sentiment among investors looking at investing in sustainability has suffered over the last 18 months.
For example, sustainability-focused ESG equity funds suffered a net $40bn of outflows in 2024, according to research from Barclays, the first sustained exodus in this category due in part to poor financial performance, along with anti-ESG campaigns in the USA.