We’re already well into 2025 with scores of changes, news, and updates in our world and beyond. But we wanted to take a quick look back at the last few months of 2024 to reflect on progress and activity in impact investing.
We hope to do this on a quarterly basis to keep our community informed about news and activity in areas we are following including product activity, the Social Finance Fund, community finance, affordable housing and community real estate, racial and gender equity and Indigenous Reconciliation, climate action and conservation finance, food systems, the Americas, and investor activity. Think TWIB notes, but quarterly, and for impact investing.
So, here is a quick look at the last quarter in impact investing in Canada:
Impact Index: New cohort and continued products added representing continued growth
- Nine products have been added, totaling to thirty-six issuers in Impact Index+. Cohort 2: Sarona Asset Management, Indwell, Audaxa Ventures, Kensington Market Community Land Trust, EntrepreNorth, Renewal Funds, Regenerative Capital Group, Theia Partners, and Misfit Ventures.
- There are now 264 impact investing products in the general Impact Index database accessible to Canadian Investors.
Social Finance Fund: Wholesalers have accelerated capital deployment
- $32.5 million has been committed by Realize Capital Partners to seven fund managers in its second round, totaling to $67.7 million across sixteen investments. Second Round: Amplify Capital, Area One Farms, Flowing River Capital Partners, Heartwood Trust, Misfit Ventures, Regenerative Capital Group, and Thrive Impact Fund.
- $51 million has been committed by Boann across 13 investments. Investments include Active Impact Investments, BKR Capital, Cycle H2O, InvestEco, Raven Indigenous Outcomes Funds (RIOF), Renewal Funds, Sandpiper Ventures, Spring Impact Capital, The51, Thrive Impact Fund, and Migr8 Capital.
- Fonds de finance sociale CAP Finance also announced its first investments totalling $28 million in Aboriginal Savings Corporation of Canada, BKR Capital, Theia Partners and the Fonds Fiducie du Chantier de l’économie sociale.
Community Finance: Greater institutional engagement in community finance
- BDC launched a community banking initiative to collaborate with local and national intermediaries, aiming to boost Canada’s active small business count by 10% and stimulate economic growth.
- DUCA Financial Services Credit Union Ltd. formed a fair banking partnership with other credit unions to develop banking solutions specifically catering to the needs of Canada’s underbanked populations.
Affordable Housing and Community Real Estate: New capital, innovations and programs for community housing and real estate
- Social Innovation Canada released a Transit-Oriented Development Roadmap to integrate affordable housing and public transit and a $15 million+ fund RFP.
- ArtsBuild Ontario launched the SPRE program to provide arts organizations with resources and guidance for sustainable property management and real estate solutions.
- The community bond sector continues to grow, with significant momentum in affordable housing. Tapestry Capital now works with 19 affordable housing organizations and has received $3M to scale from CMHC.
- United Way of Greater Toronto committed to a $100 million fund that would finance 10 more community hubs over the next 10 years and develop new pathways for community organizations to acquire secure and sustainable space.
- Nunavut Supported Housing Capital Program launched a major initiative to address critical housing shortages in Northern Canada, prioritizing long-term solutions for sustainable housing.
Equity and Reconciliation: Advancing inclusive investing practices
- Employment and Social Development Canada (ESDC) released an update on the Social Equity Lens Investing coding system, enabling investors to integrate equity considerations into their decisions.
- Canada’s first majority Indigenous owned investment dealer launched in the fall: Cedar Leaf Capital.
- A new report on Indigenous participation in clean energy showcased impactful projects led by Indigenous communities across Canada, emphasizing the critical role of reconciliation in sustainable development.
Climate Action and Conservation Finance: Scaling nature-based and low-carbon solutions
- CREO partnership was announced to scale up commercial climate solutions, emphasizing collaborations to bring innovative technologies to market.
- Foresight Canada published a list of 50 most investable cleantech ventures, spotlighting startups poised to lead the transition to a green economy.
- InBC Investment Corp. made several investments, including in Active Impact Fund III and Svante (a carbon capture company). The Government of Canada also made a new $12M investment in BC carbon management technologies, showcasing the province’s growing leadership in cleantech innovation.
- Nature Investment Hub has been ramping up events and research, and they released a Conservation Finance report, providing insights into innovative financing approaches for biodiversity and conservation projects.
- Ottawa Climate Action Fund (OCAF) spun out of Ottawa Community Foundation. Link
Food Systems: Regenerative food systems investing scaling and organizing
- The first Regenerative Food Systems Investment Canada Summit was held virtually in December, with significant attendance and momentum building into 2025.
- FCC Capital continues to scale up its business operations, bringing on new team members and focusing on both direct and fund financing to strengthen Canada’s agri-food ecosystem.
The Americas: Impact investing market continues to grow in peer countries in the Americas
- US CDFIs receive billions in tax credits, government bond backed guarantees, government funding and philanthropy, including $100M+ from Mackenzie Scott for Native CDFIs.
- Colombia hosted COP16 in Cali and its national impact investing summit in Bogota hosted by Impacto Colombia with over 500 attendees, including 18 Canadians. Announcements included a $50 million investment by IFC in a biodiversity bond issued by Davievienda.
Investors: Investors continue to report positive performance and growth in allocations
- United Church of Canada (UCC) provided an update on their portfolio, with a commitment to grow their allocation to 50% by 2027.
- Toronto Foundation released a report on their impact investing and responsible investment portfolio performance, with a stated 9.9% annual return. They also have a great deep dive on their impact investing portfolio online.
Disclaimer
This post is for informational purposes only. It is not intended as investment advice or an offer or solicitation for the purchase or sale of any financial instrument.
For those issuers included in the general Impact Index database: we have not completed due diligence on these opportunities, including any qualified, non-reliance based analysis or specific work required for meeting Know Your Product (KYP) standards that could support investment decision-making. Further, we cannot verify or disprove any statements made by issuers regarding current or past financial or impact performance, or any of the specific stated financial or impact metrics or objectives.
Issuers on Impact Index+ have met certain requirements or standards in terms of governance, finances, impact, and equity. However, SVX or its advisors do not endorse any investments of any of the organizations, and we do not recommend any investments. The Impact Index and Impact Index+ not designed to be a replacement for due diligence. However, it is hoped that it makes that process much more efficient for investors and issuers alike.
Investing in the exempt market has significant risk. You should be aware of these risks, and as appropriate, consult with appropriate financial professionals to support your decision-making processes.