Sustainable and Impact Investing 2024: Insights and Perspectives

Overview

• Of the 255 CA clients that responded to the 2024 survey, 157 reported engaging in Sustainable and Impact Investing (SII) (54%). A group of 49 institutions have consistently responded to three consecutive surveys in 2020, 2022, and 2024. From this group, we have seen a steady increase in SII integration from 45% in 2020 to 61% in 2022, and now 69% in 2024.
• The number of respondents to the survey increased by 111 institutions, representing a 77% increase from 2022.
• Religious institutions have the highest SII integration with 93% of respondents. Foundations, cultural/research institutions, and colleges & universities all have most respondents integrating SII with 64%, 61%, and 58%, respectively.
• Institutions that do not engage in sustainable and impact investing mainly cited they were not interested or that their mission is solely addressed via programmatic/philanthropic activities or perceived negative impact on financial performance. However, nearly one-quarter of these institutions anticipate engaging in sustainable and impact investing in the future.

Investment Structure

• The ways in which responding institutions incorporate sustainable and impact investing most often include: developing an Investment Policy Statement (IPS) that integrates SII priorities, principles, and decision criteria; engaging with advisors to implement; and informing their investment managers that SII/ESG is important.
• Approximately 63% of respondents engaged in sustainable and impact investing allocate more than 5% of their portfolio to sustainable and impact investments, with nearly one-third allocating more than 25%. Over the past five years, 78% of the respondents reported they increased their allocation to sustainable and impact investing. Approximately two-thirds of respondents reported plans to increase their allocation to sustainable and impact investing over the next five years.

Implementation Strategies

• Institutions continue to employ a range of strategies to achieve SII objectives, including ESG integration, impact investing, negative screening, and program-related investments. ESG integration remains the most commonly used tool.
• Respondents reported that anti-ESG/DEI sentiment and/or legislation had minimal impact on approach to SII with 93% reporting no effect.

Madeline Clark, Investment Director, Sustainable and Impact Investing

Ellie Bentley, Associate Investment Director, Sustainable and Impact Investing

Xade Wharton-Ali also contributed to this publication.