“Just Married”—Clean Energy and Impact Investing: A New ‘Impact Class’ and Catalyst for Mutual Growth

Abstract

A positive matrimonial perspective can readily be applied as an analogy to the burgeoning union of Clean Energy + Impact Investing. While, separately, growing bodies of research exist on both industry segments, there is nothing in the literature that provides a meaningful synergistic assessment of the two, or the new ‘impact’ class into which they fit. With this in mind, the objectives of this article are to: (1) provide a practical overview of the impact investing industry, 2) summarize the clean energy industry, and 3) deliver a strategic assessment of the numerous synergies between the two segments and the resulting opportunities for dynamic mutual growth. Ultimately, the author argues for the development of a related new alternative investment class—Clean Energy Impact Investing—that is designed to capitalize on this catalytic growth opportunity. This analysis identifies knowledge gaps and critical issues that need to be addressed before the lofty potential of this union can be fully realized.

TOPICS: ESG investing, commodities, legal/regulatory/public policy, performance measurement