Catch 22; Let’s Talk a Year in Review

6 min readJan 9, 2023

From the jubilation following the passing of the historic Inflation Reduction Act in the U.S. (which we wrote about here) or the implications of the war in Ukraine (which we wrote about here), 2022 has been a memorable — and arguably emotionally volatile — year for the books. While we have waxed lyrical about the crises facing people and the planet, especially at the intersection of the two, it’s time to dwell on some of the immense progress we’ve seen from our observation deck over the impact investing universe.

Top of mind: the impact investing market topped $1 trillion USD this year, with an estimated $1.164 trillion under management by 3,340 impact organizations. Is that capital all actually achieving something positive or is there a veil of greenwashing covering it? Probably a mix of both. Nonetheless, the tailwinds and directionality of this growth is positive, and we’ve seen our pipeline overflowing with genuinely exciting, genuinely high-impact opportunities this year.

Next, not glamorous but important: regulation. In Europe, the Sustainable Finance Disclosures Regulation (SFDR) has evolved from its initial launch in 2021, aiming for the launch of Level 2 in 2023. The UK Transition Plan Taskforce (TPT) launched in April 2022 to focus on private sector climate transition plans, while the TNFD — the Taskforce on Nature-related Financial Disclosures — came into existence to progress reporting on nature-related risks. In the U.S., the Securities and Exchange Commission (SEC) issued three proposals this year that focused on preventing misleading or deceptive fund names, requiring more detailed environmental, social and corporate governance (ESG) disclosure by funds and advisors, and enhanced climate risk disclosures by issuers. Lots of words. Lots of jargon. But people are working globally to ensure some sense of structure around impact, ESG, and climate reporting.

Last but not least: climate. In 2022, we are now halfway to the target year of 2030 to achieve net zero from the initial 2016 Paris Agreement starting point (which we also wrote about, here). Impact investors have responded by directing more than 25% of all venture funding in 2022 towards climate tech, with over $94 billion in private market investment vehicles launching this year. Flat World Partners reviewed over 150 climate tech strategies this year. We have reviewed funds capitalizing on the emergence of natural capital and deep energy transition strategies in real assets, as well as net zero aligned growth equity and clean energy project finance. We’ve been proud to be part of this growth story in climate investing and anticipate that 2023 has a lot more in store.

Thank you for joining our newsletter musings over all things impact this year! We look forward to a year which gives a lot more positive change to write about.

Hayley Mole, Vice President

In a rare stroke of creativity (for a bank) — UBS’s summary of the past few years is an apt one. With 2020 undoubtedly the year of infections, 2021 as the year of injections (monetary, fiscal, and medical), and 2022 as the year of inflation, UBS is predicting 2023 to be a year of inflections. Well done UBS, well done. This summary highlights the bank’s key sustainable investing questions for 2023.

Hats off to a weekly review that I very much enjoy reading, which has kept me up to speed on all things ESG and impact data, regulation, and sentiment in public markets, for which I have little coverage day-to-day. And in this instance, Util, hats off to you for using what I thought was an original newsletter title before I had the chance to use it myself.

For a deeper dive into impact investing themes and reimagining capitalism for a more inclusive and just future, take a listen to the Global Impact Investing Network’s (GIIN) podcast titled Next Normal. In each episode, host Amit Bouri, who is the CEO of the GIIN, interviews thought leaders who are helping the world reimagine and move towards an economic system that helps us address our global challenges.

This newsletter is intended solely for informational purposes, and should not be construed as investment/trading advice and are not meant to be a solicitation or recommendation to buy, sell, or hold any securities mentioned. Any reproduction or distribution of this document, in whole or in part, or the disclosure of its contents, without the prior written consent of Flat World Partners is prohibited

Thank you for subscribing to our newsletter. Our privacy policy is available at anytime for you to review in order to understand how we protect your personal identifiable information. By subscribing to the newsletter you have consented to our policy

Forwarded this message? Subscribe Here!

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list