From the Margins to the Mainstream

The report defines impact investing as an approach intentionally seeking both financial return and measurable social or environmental impact. It identifies that while high-net-worth individuals and development finance institutions are active, mainstream institutional investors are hindered by an immature ecosystem, small deal sizes, and a lack of standardized impact measurement. The report recommends increased transparency in financial returns, the adoption of common impact reporting standards, and government interventions such as tax relief and risk-guarantees to attract larger pools of capital.

• Impact investing is defined as an investment approach, rather than a stand-alone asset class, that intentionally seeks to create both financial return and a positive social or environmental impact that is actively measured.
• The impact investment sector is currently small and fragmented, with a conservative market size estimated at approximately US$ 25 billion, meaning it would need to grow by 53% to 69% annually to reach projections of US$ 500 billion to US$ 1 trillion by 2020.
• Current capital providers are dominated by high-net-worth individuals, family offices, and development finance institutions, while liability-constrained investors like pension funds and insurance companies remain less active due to fiduciary responsibilities and perceived trade-offs between profit and purpose.
• Mainstream institutional investors face a significant 'deal size' mismatch; the average direct impact investment is far smaller than traditional private equity growth capital deals, and many impact funds are too small to meet the minimum commitment thresholds of large pension funds.
• A primary barrier to mainstreaming is the 'double bottom line' challenge, characterized by a lack of widely accepted standards for measuring and reporting social and environmental outcomes, making it difficult for investors to compare portfolios.
• US-based pension funds exhibit significant confusion regarding impact investing, with 32% viewing it as a 'noble way to lose money' and only 6% currently making such investments, despite 64% anticipating that pension funds will do so in the future.
• To attract mainstream capital, the report recommends that impact funds be transparent about financial returns, use standardized impact measurement systems, and employ innovative strategies like pooling funds to increase deal size.
• Governments can catalyze the sector by providing tax relief for early-stage investments with public benefits, revising restrictive regulations (such as the ERISA 'prudent-man rule' in the US), and providing fiscal safety nets or anchor funding.

APA

World Economic Forum (2013). From the Margins to the Mainstream. http://www3.weforum.org/docs/WEF_II_FromMarginsMainstream_Report_2013.pdf

Chicago

World Economic Forum. From the Margins to the Mainstream. 2013. http://www3.weforum.org/docs/WEF_II_FromMarginsMainstream_Report_2013.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=From the Margins to the Mainstream |date=September 2013 |url=http://www3.weforum.org/docs/WEF_II_FromMarginsMainstream_Report_2013.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2013from, author = {{World Economic Forum}}, title = {{From the Margins to the Mainstream}}, institution = {World Economic Forum}, year = {2013}, month = sep, url = {http://www3.weforum.org/docs/WEF_II_FromMarginsMainstream_Report_2013.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }