Benchmarking Impact 2025: The Money Is Moving Whether You Like It Or Not
Impact investing in Australia has reached a scale that is impossible to ignore.
The 2025 Benchmarking Impact Report from Impact Investing Australia (1) shows a market that has grown from $20bn in 2020 to $157bn today. This has occurred during a year where international sentiment has become more politically charged, particularly in the United States. Yet we note in Guardian’s reaction piece to the report which is blunt. Local investors have simply turned down the volume while continuing to deploy capital. The market has pushed ahead. (2)
A Market Expanding Faster Than Expected
The report highlights an eightfold increase in impact products. It shows more than $144bn sitting in green, social and sustainability bonds and more than $12bn in dedicated impact funds. This is not hypothetical capital. Investors have financed projects that have abated 110m tonnes of CO2, avoided 1.3m tonnes of landfill, planted 3m trees and restored 363m litres of water. These are hard economic outcomes. The capital markets response has been stronger than the public conversation suggests.
Performance is matching expectations. Eighty percent of surveyed investors reported meeting or outperforming financial expectations. Eighty four percent reported meeting or exceeding impact expectations. These figures show impact capital is functioning as a competitive asset class rather than a concessionary one. Private equity, private debt and infrastructure dominate and continue to align with broader long term investment trends.
The Disconnect Between Political Tone and Capital Allocation
One of the most striking insights from both the Benchmarking Impact Report and the Guardian reaction is the behavioural shift among investors. International political rhetoric has grown louder. The United States has leaned heavily into fossil fuel messaging. Some global managers have responded by speaking less about climate allocations. Yet they have not stopped making them.
Australia’s local data reinforces this. Investors have purchased $145bn in green, social and sustainability bonds, up from $17bn in 2020. State governments alone have issued roughly $67bn. Corporate issuers and supranational institutions have added to the mix. Despite the noise, investors continue to fund the transition because the opportunity set is compelling. The dollars have ignored the politics.
Government Support and Market Maturity
Nearly ninety percent of survey respondents believe the government should play a stronger enabling role. Suggested actions include tax incentives, wholesale capital structures and capability building programs. Yet governments are already significant participants in the market through their own issuance of sustainability bonds. Their role is likely to expand as the sector matures.
Measurement remains an area that needs refinement. There is no single dominant framework. Investors use a mix of SDGs, IMP tools, IRIS metrics and proprietary systems. Even so, the absence of a single model has not slowed market growth. The capital has led. The reporting standards will follow.
What This Means for Investors
Impact investing is no longer a fringe strategy. It is becoming a mainstream component of diversified portfolios. Younger Australians are allocating more capital towards impact outcomes. Institutional investors are expanding commitments to green and sustainability bonds. Super funds are scaling impact allocations year after year.
The gap between the public conversation and the capital movement is widening. Investors may agree or disagree with the political framing of climate action. It does not change where the money is flowing. Australia’s impact market is growing because the investment opportunities are financially attractive and measurable. The trend is not driven by rhetoric. It is driven by returns.
The Bottom Line
The 2025 Benchmarking Impact Report shows a market that has expanded far beyond expectation. With $157bn now deployed and strong performance across asset classes, impact investing is becoming a structural allocation decision rather than a values based one. Investors face a choice. Participate in a rapidly scaling market or watch it gather pace without you. The financial outcomes are competitive. The demand is strong. The trend is clear.
References
Impact Investing Australia. Benchmarking Impact: Impact Investor Insights Activity and Performance Report 2025. Available at: https://impactinvestingaustralia.com/benchmarking-impact-report-2025/
Ittimani, L. Australian investment in green projects surges despite drastic US policy reversal. The Guardian. 16 November 2025. Available at: https://www.theguardian.com/australia-news/2025/nov/16/australian-investment-in-green-projects-surges-despite-drastic-us-policy-reversal
Important Information
EnviroInvest Pty Ltd ACN 685 107 957 (EnviroInvest) is an Authorised Representative of Daylight Financial Group Pty Ltd ACN 633 984 773 (DFGPL) which is the holder of an Australian Financial Services Licence (AFS Licence No. 521404). Information in this commentary is current as at date prepared unless otherwise stated. However, please bear in mind that investments can go up or down in value, and that past performance is not a reliable indicator of future performance. For more Important Information please refer to the Disclaimer section of this website. This communication may contain general financial product advice. It has been prepared without taking into account your personal circumstances, and you should therefore consider its appropriateness in light of your objectives, financial circumstances and needs before acting on it. If our advice relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of and consider the Product Disclosure Statement (PDS) before making any decision.