Institutional demand is reshaping the impact investing market, with sovereign wealth funds increasing stakes in sustainable agriculture companies. Sector analysts predict above-average EPS growth by Q3 amid high commodity prices. “It’s more durable because looking at impact as a driver of growth of companies is a financial discussion,” Shah said. “This is a real economic theme and driver today.” However, she said there is clear evidence of growing enthusiasm for impact investing in the Dutch market. “One remarkable part of our findings is the number of organisations that have actually issued an impact investment target,” she said. The impact investing market is outperforming traditional benchmarks, with the MSCI ESG Leaders index up 6.4% YTD versus the S&P 500’s 4.1%. Data trends point to sustained rotation into sustainable stocks as global investors hedge against regulatory risk.
