“One of my perennial calls to action for all impact investors is to fund the rails you ride on. If you raise impact capital, if you deploy impact capital, you need to support the field infrastructure that enables your work.” - Fran Seegull

‍

In the Compass Series, Tideline moderates annual conversations with leaders from the impact investing sector dictating the state of the field. Earlier in June, they hosted the fourth Compass Webinar with the theme “Doubling Down and Expanding Horizons.” We heard from Fran Seegull, Vikas Arora, Beth Bafford, Kieron Boyle, and Zach Johnson. Here are some of our highlights from the webinar:

‍

Market Overview

The speakers highlighted the ongoing extensive public investment in climate solutions and the awakening of more regions to the impact ecosystem, such as Asia and other emerging markets. The field has enjoyed extraordinary growth over the past 15 years and there is an increasing understanding that every investment has an impact. However, economies are still rebounding from the pandemic, and we face significant uncertainty and threats of a recession.

‍

Fran Seegull emphasized that all investments have an impact, though this impact has often been opaque. With the involvement of more mainstream actors like corporations, pension funds, and insurance companies, the field is seeing trillions of federal and private dollars invested in infrastructure, energy, and community development. Yet, the macroeconomic factors present headwinds, with raised hackles from fossil fuel industries and DEI initiatives drawing ire from some quarters.

‍

Policy

On the legislative front, the US is decently behind its peers in terms of federal action to support this ecosystem. Since 2021, there has been a $4 trillion commitment in federal legislation to transitioning to a clean energy economy across all sectors, aiming for a net-zero future. There is also the Consolidated Appropriations Act, directing $1.5 billion to support Community Development Financial Institutions (CDFIs) across the country. Beth Bafford pointed out the necessity of holistic transitions to clean energy and the recognition of community-based lenders to ensure funds reach the last mile.

‍

The Call for IMM

As impact investing gains traction globally, there is a critical need for transparency and standardization in impact measurement and management (IMM). Zach Jackson highlighted that building the impact market globally requires investment in underlying infrastructure, enabling all impact capital to flow efficiently. This includes public policy tools and IMM tools, which are often underfunded and supported by only a handful of philanthropic players.

‍

Kieran Boyle noted that solutions-focused businesses, which drive economic growth through social and environmental services, make up less than 2% of global capital markets. The challenge is to speed up the tipping point where these businesses become more mainstream. This involves policy innovations and incentive approaches like the Inflation Reduction Act (IRAct) and setting emission prices as seen in the EU and UK.

‍

Beth Bafford discussed the exciting developments in IMM, with a shift from focusing on outputs to outcomes, specifically looking at lives changed as intended. This transition demands greater data collection, aggregation, and dissemination to reduce the gap between perceived and actual risk. Innovations in technology are essential to articulate policies and verify their impact effectively.

‍

Just Transition and Fiduciary Duty

The panelists emphasized the need for a fair and inclusive transition to net-zero, highlighting the importance of describing to people why this transition is in their interest. They stressed the role of large investors in aligning with outcomes, focusing on climate finance and the double materiality of fiduciary duty—balancing today’s needs with long-term value.

‍

Impactable exists to maximize the value and minimize the burden of generating the proof points that matter most. We build and invest in solutions that can move the needle.

‍

Want to see us in action? Schedule a demo today!

‍