The Supply of Impact Capital in Spain in 2022

What was the growth rate of impact investing in Spain in 2022?

Impact investing in Spain saw substantial growth in 2022, with assets under management reaching €1.208 billion, a 58% increase from 2021. Private impact funds have been the primary drivers of this growth, demonstrating the sector's consolidation.

What role do ethical and social banks play in Spain’s impact investing landscape?

Ethical and social banks, along with financial services cooperatives, play a crucial role in impact bank financing, managing €1.743 billion in assets. This segment focuses on supporting the ordinary activities of impact organisations without needing direct involvement in their operations.

What are the main challenges faced by the impact investing sector in Spain?

The main challenges identified include the regulatory framework, impact washing, and impact measurement. Addressing these challenges is crucial for nurturing impact companies and maintaining the integrity of the sector.

What sectors offer the most promise for impact investments in Spain?

Certain sectors have been identified as particularly promising for impact investments in Spain, including renewable energy, social housing, education, and healthcare. These sectors offer significant opportunities for both financial returns and positive social and environmental impacts.

Why is investor additionality important in impact investing?

The report highlights the necessity for increased transparency in investor additionality. This is crucial to ensure that investments create social or environmental impacts that would not otherwise happen. The convergence towards certain impact measurement tools, such as the SDGs and the theory of change, is also highlighted.

Who are the key players and initiatives driving impact investing in Spain?

The report identifies several key players in the Spanish impact investing market, including private funds, ethical banks, and public institutions. Key initiatives highlighted include the launch of new impact funds, partnerships between public and private sectors, and innovative financial instruments aimed at increasing the flow of capital to impactful projects.