Engaging Highnet-worth individuals and family offices for impact

Impact investing is no longer the domain of institutions alone. Highnet-worth individuals and family offices now hold a pivotal position in shaping how capital can pursue both financial returns and societal change. 

Impact investing involves making investments specifically aimed at generating positive, measurable social or environmental impacts alongside financial returns. For example, in 2016, a solar mini-grid project was launched across 100 villages in Kenya. With a $ 12 million investment and an expected annual return of 7.2%, the project was designed to provide electricity to around 90,000 people, bringing reliable energy to communities that previously had limited access. 

Impact investing differs from sustainable investing in terms of goals and outcomes. In the latter, the objective is to integrate ESG factors and manage ESG-related risks while achieving financial returns. To illustrate, investments in the iShares MSCI KLD 400 Social ETF and green bonds are considered sustainable investing. In 2024, the GIIN estimates that the total AUM for impact investing worldwide amount to $ 1.57 trillion.

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