Impact investing needs clearer labels

Clearer return signals can reduce barriers

Clearer labelling has the power to reduce misunderstandings, streamline due diligence and reduce the time and cost investors currently spend trying to interpret where different impact investments sit on the risk-return spectrum.

Ultimately, it could help more capital find its way to impact opportunities and support the next stage of growth for impact investing in Australia.

For any labelling system to be effective, it must be widely understood and adopted across the market. No single organisation can establish this on its own. Developing a shared approach will require collaboration among the organisations that have helped shape Australia’s impact investing ecosystem, including foundations, impact fund managers, advisers, and intermediaries. We look forward to continuing the conversation.