WHY

IMPACT INVESTING

Globally and in the Netherlands, societies face large and complex challenges in the environmental and social domain. Government, the social sector, and philanthropy can’t address and/or fund them alone. Achieving the Sustainable Development Goals (SDGs) will take US$5-7 trillion per year globally, with an investment gap in developing countries of about $2.5 trillion.

Next to DFIs (Development Finance Institutions), governments and NGOs, increasingly investors, and the business world play a crucial role in achieving the SDGs and climate objectives. Impact investors and companies with a social or environmental purpose (B-Corps, social enterprises, etc.) are at the forefront of implementing the SDGs.

Impact investment can help close the funding gap. Public, private, and philanthropic capital can work together to deliver targeted outcomes across a broad range of areas. We are missing opportunities to better leverage public and private sector capital for the common good. We can support innovation, infrastructure and entrepreneurship to create and scale solutions to issues affecting society.

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One of the key barriers to actively shifting to impact investing is the lack of reliable knowledge from a curated source that can be considered as best practice and setting the standards. Our sister organisation, the Impact Investing Institute (the UK NAB) has created a free Learning Hub for professional organisations and individuals. It is designed to help you learn more about impact investing either to meet your personal interest or to support your work with clients.

Some of the largest problems facing the world (such as climate change) have been created by mankind and will require unique, multi-disciplinary action and cooperation to solve. In Europe, the EU and EIB stand ready to invest heavily in mitigating climate change: this is expected to be an area where Dutch organizations can play a significant role both domestically and abroad. To do this effectively and create maximum leverage will require close collaboration and action among Dutch players.

The unique multi-stakeholder approach, combined with strong connections with the international GSG network, will allow the NAB to support a significant scaling up of institutional money invested for positive societal and environmental impact.

[1] The 2019 Phenix Capital Survey indicated that the top 3 SDGs institutional investors are prepared to invest in are: Climate Action (13), Renewable Energy (7) and Health (3).