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Doing good is paying off: Impact investing increases eight-fold

Centre for Social Impact UNSW and Impact Investing Australia

Benchmark report shows impact investing has taken off in Australia, exceeding projections to reach over $157 billion and outstripping investors’ expectations for impact and financial returns.

New research released today reveals that Australia's impact investing market has grown nearly eight-fold since 2020, with more than $157 billion invested in impact products and high satisfaction levels among investors.

The landmark report from Impact Investing Australia and the UNSW Centre for Social Impact provides the most comprehensive current analysis of the Australian market, exploring investor attitudes and product range.

The report, Benchmarking Impact: Australian Impact Investor Insights, Activity and Performance Report 2025, shows a strong flow of capital into the sector, significantly exceeding the market's own projections. The research surveyed active and prospective impact investors representing over $345 billion in funds under management and analysed 197 publicly available impact investment products.

“This report provides the first detailed analysis of the Australian impact investing market in five years,” said Impact Investing Australia CEO David Hetherington.

“The research shows that investors are moving beyond intention to action, with impact investments consistently delivering both financial performance and measurable outcomes. This is a clear signal that impact investing is a credible and increasingly resilient strategy” said Professor Danielle Logue, Director of the UNSW Centre for Social Impact. 

Key Findings

• Exponential Growth:

• The total value of public impact products has grown from $20 billion in 2020 to $157 billion in 2025, with much of the growth driven by the market for green, social and sustainability (GSS) bonds
• The number of publicly available impact products has increased by 77%.
• The value of impact funds has more than quadrupled, while the value of GSS bonds has seen an even more dramatic 8.5x increase, now representing the largest share of the market at $145 billion.

• Strong Performance and Confidence:

• 80% of survey respondents said the financial performance of their impact investments met or exceeded expectations.
• 84% reported that the social and environmental impact generated by these investments also met or surpassed their expectations.
• Looking ahead, 60% of investors are confident that impact investments will continue to deliver at or above market-rate financial returns in the future.

• Future Opportunities:

• While a large majority of investors (85%) track impact during an investment, the report highlights a significant lack of consistency in Impact Measurement and Management (IMM) frameworks. No single framework is used by a majority of respondents.
• The report notes a strong interest in blended finance, with over 60% of active investors having participated in these structures. However, investor appetite for investing in emerging markets remains limited, with only one-third of respondents expressing interest, citing a lack of market demand and internal organisational constraints as key barriers.

• The report also reveals that while the market is thriving, there is a clear call for more government support, with almost 90% of investors believing the government could do more to stimulate growth through measures like tax incentives, wholesale funds and capacity-building programs.

“We can now confidently say that impact investments are delivering on their promise of generating both a positive, measurable impact and a competitive financial return – but Australia’s impact investing market remains underdeveloped relative to its peers,” said David Hetherington.

“Federal leadership in establishing a wholesale co-funding mechanism that provides cornerstone investment alongside private and philanthropic capital would accelerate a deeper, more efficient impact investing market. This would deliver long-term productivity gains by unlocking significantly greater private investment in areas like inclusive employment, affordable housing and regional development.”

“Impact investing recognises that the challenges facing society are too large and complex to be solved by any single actor, and encourages innovative approaches that generate measurable social and environmental outcomes alongside a financial return,” said Professor Danielle Logue.  

“This study shows the Australian market has not only met but exceeded projected demand for impact investing products by almost 60% since 2020, highlighting the growing appetite of investors willing to deploy capital at scale for products with purpose.”

The report responds to stakeholder demand for up-to-date data on impact transactions and their performance. Its findings serve as a valuable guide for investors, policymakers and practitioners, helping to unlock further growth, transparency and confidence in impact investing in Australia.

About us:

About Impact Investing Australia (IIA)

IIA is the national peak body for impact investing, dedicated to growing the market for investments that deliver measurable social and environmental benefits alongside financial returns. Our vision is that every dollar invested builds a better world.

 

About the Centre for Social Impact at UNSW

The UNSW Centre for Social Impact is a dedicated research and education centre based in UNSW Business School. For over 17 years, we have developed people and partnerships that accelerate social innovations for a more sustainable and inclusive economy, generating progress for all.

Contact details:

For CSI UNSW: Pia Akerman 0412 346 746

For IIA: David Hetherington, CEO, 0413 863 068 [email protected]