The Israeli Forum for Impact Economy (IFIE) is a multi-sector group of Israeli leaders committed to ensuring continued economic growth and prosperity through the adoption of an impact-driven economy.
The world today is more complex, connected, and crowded than ever.
The fast pace of change introduces both challenges and opportunities - climate change and environmental strains, ethical market and technology, resource depletion, the future of work and unemployment, population growth inequalities, changing disease patterns, human ecological footprint, and social discord.
The development of the modern global economy, as we know it today, has created immense gains for humanity (with the advancement of technology for our service, progress in human life span, and more), but at the same time, it has caused negative spillovers, unplanned consequences and systemic risk factors that are now undermining future circumstances for progress, safety, and wellbeing.
It is clear that the time is ripe to take action.
We need a comprehensive and inclusive framework, in order to best navigate the change and create a positive economic-societal-environmental impact. Collaborative actions among diverse parties - governments, international organizations, private markets, universities, NGOs, and innovative individuals are required to address these challenges.
That is why we at the IFIE envision a sustainable Impact Economy in Israel - a new economic narrative;
a synergy and intersection of views, perspectives, ideas, instruments, approaches and strategies, collaboration and connection, integrating both economic activities with improved social and environmental outcomes – an ‘impact economy’.
The concept of ‘Impact Economy’ is the holistic approach to how we create, exchange, and distribute ‘value’.
It also recognizes the necessary interdependence of social, natural, human, manufactured, and financial capitals in generating wealth and wellbeing. The underlying logic is that a thriving and sustainable economy relies on a functional and stable society, that in turn is dependent on replenishable natural resources and healthy ecosystems.
The ‘Impact Economy’ signals that it is time our economic systems ensure that our values directly impact the people and the planet, and to ensure a positive future where all people, communities, and places thrive, and where the planet with its diverse ecosystems can flourish.
Source: Griffith University
The United Nations Sustainable Development Goals present us with one of the most comprehensive blueprints for solving the world's most pressing needs - poverty, hunger, and disease.
According to the Business Commission for Sustainable Development - The SDGs, if achieved by 2030, can open up US$12 trillion in market opportunities annually, 50% of opportunities in lower and middle-income economy countries (developing countries) and could generate 380 million new jobs.
Companies that take a principles-based approach to address the SDGs have a unique opportunity to meet the world's needs while capturing future markets.
THE SUSTAINABLE INVESTING SPECTRUM
There is a growing recognition that investing for return and 'doing good' are not mutually exclusive. The term 'impact investing' is often used to describe multiple practices that may overlap with — or include — responsible, sustainable, and socially responsible investing.
The following map provides details on the broad range of risk/return strategies that exist within sustainable and impact investing. As the field matures, we will update this page to reflect the most accepted views and frameworks.