The Israeli Forum for Impact Economy (IFIE) is a multi-sector group of Israeli leaders committed to developing an impact-driven economy — while simultaneously ensuring continued economic growth and prosperity.
The world today is more complex, connected, and crowded than ever.
Challenges we are facing include:
Climate change and environmental pollution, burning fossil fuels, and deforestation
Ethical market and technology,
Future of work and unemployment
Raising inequalities in population growth
Worsening effects of humanity’s ecological footprint
The development of the modern global economy, as we know it today, has created immense gains for humanity (including technological advancements, and increases in human life expectancy, among other developments), but at the same time, it has caused negative unintended consequences as well as systemic risk factors that are now undermining future opportunities for progress, safety, and wellbeing.
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.
At the IFIE, we envision the creation of 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. Collectively, we call these changes the development of an ‘impact economy’.
An ‘impact economy’ represents a holistic approach to how we create, exchange, and distribute ‘value’. It also recognizes the necessary interdependence of social, natural, human, manufactured, and financial capital in generating wealth and well-being.
A thriving and sustainable economy relies on a functional and stable society that in turn is dependent on replenishable natural resources and healthy ecosystems. An economy is a tool that works within a social and environmental construct, when one part of the equation shifts the other needs to shift to align and counterbalance it.
The ‘Impact Economy’ signals that it is time for our economic system to ensure that our values directly align with the interests of 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 offers one of the most comprehensive blueprints ever developed to solve the world's most pressing needs - including poverty, hunger, and disease alleviation. They also articulate a roadmap towards a shared and better future.
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 those opportunities will be found in lower and middle-income economy countries (developing countries), and could collectively generate 380 million new jobs.
Companies that take a principles-based approach towards address the demands of the SDGs have a unique opportunity to meet the world's needs while also capturing future market value.
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 (SRI).
The following map provides details on the broad range of risk/return strategies that exist within sustainable and impact investing.