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08 January 2025

Global Investment Trends Point To Major Changes Ahead For 2025

Prominent industry leaders share insights on the challenges and opportunities shaping impact investing and the financial sector.

A year of significant growth marked the global investment sector, underscoring trends and potential shifts as market players eye 2025. Industry leaders are keeping their fingers on the pulse of changes impacting the investment world, particularly focusing on impact investing and the collaborative efforts required to tackle burgeoning challenges.

According to Amit Bouri, CEO of the Global Impact Investing Network (GIIN), 2025 could see renewed attention on the working class, especially following pivotal elections worldwide. "I expect to see new opportunities and demand for impact investors to create positive outcomes for quality jobs and economic development," Bouri noted, recognizing the social tensions stemming from historic inequality. He mentioned increasing allocations for impact investments primarily targeting sub-Saharan Africa, Southeast Asia, and Latin America, as investors tune their strategies to meet need and demand.

Meanwhile, Steven Serneels, chair at Impact Finance Belgium, emphasizes the end of the post-World War II era and the need for economic competitiveness and innovation, particularly amid mounting geopolitical pressures and changing collaborations within Europe. He stated, "The post-World War II era has definitely come to an end," calling for impactful practices to flourish against the backdrop of uncertainty.

On the local front, Spanish perspectives bring attention to social and environmental highlights. Mercedes Valcárcel, managing director at SpainNAB, described initiatives aimed at reducing inequality and environmental degradation, asserting, "We must avoid ‘impact washing’" to truly gauge the effects of funded projects. She called for greater clarity and objective data, highlighting the necessity to illuminate social and environmental impacts achieved through investments.

Climate change also stands out as a growing concern. Hadewych Kuiper, managing director at Triodos Investment Management, articulated the financial sector's increasing realization of nature-based solutions. "The climate crisis can only be reversed with the restoration of nature," she stressed, urging all financial stakeholders to recalibrate their priorities to preserve biodiversity.

The conversation toward collaboration surfaces across sectors as pivotal. Laure Wessemius-Chibrac of NAB stressed the essence of cross-segment cooperation, stating, "We believe societal goals and private capital can be reconciled," advocating for connections capable of steering impactful ventures. This echoes Agustín Vitórica, co-founder of GAWA Capital, who sees the potential for blended finance mechanisms to root systemic change, which is more transformative than mere capital accumulation for high-impact projects.

Kris Atkinson from Fidelity emphasized the urgency stemming from international commitments at congresses like the COP 15 UN Biodiversity Summit, warning how nations are currently lagging behind their pledged ecological goals. Meanwhile, Hilde Støle Pettersen of Momentum voiced the necessity of aligning financial initiatives with concrete sustainability outcomes, advocating for innovative instruments to become hallmark indicators of progress.

This anticipation of 2025 threads through various narratives, all underscoring the urgency for stakeholder collaboration to revolutionize traditional investment principles and mindsets. With growing investor interest spanning various demographics, including those previously marginalized, the need for adaptability and transparency grows ever clearer. "Investors have more access to information, asset classes, and tools than ever before," highlighting the evolution of inclusive practices now imperative to stay competitive.

Marking 2025 as potentially transformative, the global investment sector remains poised between accelerated growth and pressing social, economic, and environmental accountability. History tells us such junctures can be both tumultuous and foundational. But with the insights of industry leaders driving the discussion, the groundwork is laid for meaningful impact financing to emerge."