Impact measurement data provider UpMetrics has posted a forward-looking blog on impact investing trends in 2025 that provides a useful lens for faith-based asset owners making or considering impact investments as part of their overall faith-consistent investing programmes.
The number one trend cited in the blog is the divergence of impact investing and ESG investing, driven by the demand for clear, measurable social and environmental outcomes.
We've written in the past about the complexities and nuances of ESG ratings, which have been described as 'noisy,' (among other things), and this prediction seems to reflect a growing focus on measurable impact and investors' desire for 'greater accountability and transparency, ensuring their funds directly address pressing global challenges rather than solely mitigating risks'.
Another notable prediction is for the rise of thematically-focused impact funds, driven by increasing demand for investments targeting specific global challenges. This may be of particular relevance to FBAOs seeking to express their beliefs, teachings, and values in specific geographical or thematic ways.
The blog includes a link to a case study that describes UpMetrics' work with Sonen Capital, a social and environmental impact investment firm located in San Francisco, expressing the view that 'managers will need to ensure they are equipped to not only sell impact-focused, sustainable, or virtuous investments, but to be able to report on the non-financial results of those investments within a given portfolio or fund'.
Feedback from participants in our Faithful Finance course frequently cite the benefits of becoming more fluent in the language of such reports in order to work more effectively with investment managers, and members of the FCI Interest Group seeking to develop or improve such skills are invited to contact us at info@faithinvest.org or visit the Training section of our website.
The blog concludes: 'By embracing transparency, leveraging robust measurement tools, and responding to the urgent needs of our time, impact investors' - including FBAOs - 'can lead the charge in driving sustainable, equitable change while achieving long-term returns. The year ahead promises not only progress but also a renewed commitment to building a better, more resilient future for all'. A new year's 'Cheers' to that!