July 27, Bethesda, MD- Calvert Impact Capital has announced the publication of its biennial Impact Investor Survey results, which revealed that respondents were reporting an increase in the number of impact investments over the past two years.
Every two years, Calvert Impact Capital conducts an investor survey to better understand the motivations of its investor base, the challenges they face in impact investing, and how Calvert Impact Capital can best serve them. This survey aims not only to inform the work of the company, but also to provide insights that the entire impact investing industry can use. Nearly 800 people participated, with respondents split into two cohorts, people and institutions who have previously invested in Calvert Impact Capital’s Community Investment Note® (or advisors who have helped clients invest) and people, institutions and advisers who have not invested.
One of the striking findings of the survey is the extent to which intentions are translated into actions. In the survey conducted two years ago, 70% of respondents said they planned to increase their impact investing, but only 19% had recently made an impact investment. In the 2022 version, however, 66% of respondents said they planned to increase their impact investments, and more than half said they had recently invested to fight climate change, 39% to fight equity and racial justice and 21% to mitigate impact. of COVID on communities. The 2022 results also contrast with what Calvert Impact Capital found in 2018where most respondents indicated that less than 5% of their total investment portfolios were allocated to impact investing.
There were also indications that the community investment note served as an on-ramp to impact investing, as more than half of investors said it was their first impact investment, while nearly two-thirds said they now have other impact investments.
“That’s probably what got me most excited,” said Jennifer Pryce, president and CEO of Calvert Impact Capital. “Investors are clearly treating the Community Investment Note as a core part of their portfolios while over time looking for other places to invest to make an impact. This is an important validation point for us as we embark on creating new products, and it should reassure the wider impact community that interest will continue to grow.
Comparing this year’s findings to the 2020 report, the trends remained consistent, with Community Investment Note investors once again citing environmental sustainability, renewable energy, racial justice, gender equity and housing affordable as their main reasons for investing.
The theme of action and impact investing is recurrent among financial advisors, many of whom said they had made impact investing on behalf of their clients in the past two years.
- 80% of financial advisors said they have made at least one new investment on behalf of their clients to fight climate change since 2020
- 74% have made at least one new investment on behalf of their clients to fight racial equity since 2020
The number of impact investments made in both respondent segments is expected to increase over the next two years. Investors and non-investors alike have reported plans to increase impact investing in their portfolios.
Finally, the survey also asked respondents what barriers prevent them from making additional impact investments and the most cited – by individuals, advisors and institutions – was ease of purchase. While the Community Investment Note is available to investors directly from Calvert Impact Capital starting at $25 and through brokerage accounts with a minimum of $1,000, this finding suggests that the industry as a whole needs to focus on accessibility when designing impact investment products.
Additional information on the survey results can be found here.