THE 4 NUMBERS YOU NEED TO KNOW TO UNDERSTAND THE POTENTIAL OF IMPACT INVESTING
You heard the numbers; we fact checked them and found the sources for a deeper dive in. These numbers reveal both the scale of the global financial system and the underutilization of resources in achieving sustainable development goals (SDGs). It draws attention to the potential of available capital and its alignment with impact-focused investment opportunities which will inevitably fill the gap for the needs of our current and future generations. All numbers in USD.
“$6 Trillion Annually Needed to Achieve SDGs”
Achieving the SDGs by 2030 requires an estimated $6 trillion annually. This figure accounts for the investments required across various sectors such as infrastructure, education, healthcare, and climate action to meet the 17 SDGs by 2030. The calculation includes costs associated with eradicating poverty, transitioning to renewable energy, and implementing sustainable infrastructure globally. Despite the $6 trillion estimate, the actual financing gap is approximately $4 trillion per year, given current levels of funding.
17% of SDG Targets on Track
Investing in solutions aligned with the Sustainable Development Goals (SDGs) holds unparalleled potential to address urgent global challenges and financial markets hold the key to mobilizing that capital. As of 2024, only 17% of the SDG targets are on track, highlighting a significant gap in progress. This is an accurate figure from the 2024 SDG Report by the United Nations. The report highlights that only 17% of SDG targets are currently on track, with significant barriers stemming from the COVID-19 pandemic, climate change, and geopolitical conflicts.
“$1.5 Trillion in Impact Investing”
Impact investing, the intentional deployment of capital to generate measurable social and environmental benefits alongside financial returns, currently has $1.5 trillion under management. That is 1.5 trillion directed at bridging the multi-trillion-dollar annual funding gap to achieve the gap mentioned above. This figure is consistent with recent 2024 data, including reports from the Global Impact Investing Network (GIIN) on the state of the market.
“$200 Trillion in Assets Managed Globally”
The global AUM of $200 trillion is a rounded approximation often cited in financial industry analyses of the total capital managed worldwide, as of recent years. Estimates like this $200 trillion often incorporate forecasts and different methodologies, including the aggregation of AUM across asset classes like equities, bonds, real assets, and alternative investments. The $1.5 trillion of this that dedicated to impact investing is less than 1% of the total.
These numbers paint a clear picture: while there is an abundance of global capital, the proportion directed towards solving systemic issues like those outlined in the Sustainable Development Goals remains alarmingly small. Impact Investing and SDG-aligned strategies require more focus to effectively close this gap and foster meaningful progress.
