Australia’s impact investing soars to AUD $157 billion in 2025
Australia's impact investing market has expanded rapidly, with total investments now surpassing AUD $157 billion. The market, which integrates social and environmental objectives with financial returns, has grown nearly eight-fold since 2020, driven mainly by demand for green, social, and sustainability (GSS) bonds.
Market surge
The total value of public impact products in Australia has soared from AUD $20 billion in 2020 to AUD $157 billion in 2025. GSS bonds now account for the largest share, representing AUD $145 billion. This growth exceeds previous projections and highlights significant investor interest in blending profit with purpose.
Alongside this, the number of publicly available impact investment products increased by 77%. The value of impact funds has more than quadrupled. The increase in GSS bonds was even greater, with an 8.5-fold jump making them the dominant product category in the market.
Performance satisfaction
Investor sentiment remains positive. Eighty percent of surveyed investors reported that their impact investments either met or exceeded financial expectations. In addition, 84% noted the social and environmental benefits met or surpassed their hopes. Looking ahead, 60% of investors expressed confidence that impact investments will continue to deliver financial returns on par with, or better than, traditional investments.
"The research shows that investors are moving beyond intention to action, with impact investments consistently delivering both financial performance and measurable outcomes. This is a clear signal that impact investing is a credible and increasingly resilient strategy," said Professor Danielle Logue, Director, UNSW Centre for Social Impact.
Measurement challenges
Despite robust growth, the sector faces challenges around the consistency of impact assessment. While 85% of investors monitor the social or environmental outcomes during their investments, the report notes a lack of uniformity in frameworks used for Impact Measurement and Management (IMM). No single IMM approach dominates the market, which could hinder comparisons and sector transparency.
Over 60% of active investors reported engaging in blended finance structures, indicating interest in financial models that mix private, public, and philanthropic funding. However, only a third of investors showed interest in investing in emerging markets, citing barriers such as limited demand and organisational challenges.
Calls for policy support
Almost 90% of investors believe there is a role for increased government involvement to support further market development. This includes measures such as tax incentives, establishment of wholesale funds, and enhanced capacity-building programmes.
"Federal leadership in establishing a wholesale co-funding mechanism that provides cornerstone investment alongside private and philanthropic capital would accelerate a deeper, more efficient impact investing market. This would deliver long-term productivity gains by unlocking significantly greater private investment in areas like inclusive employment, affordable housing and regional development," said David Hetherington, CEO, Impact Investing Australia.
Australia's impact investing market remains smaller compared to similarly developed markets internationally. Nevertheless, investor demand appears set to continue, as demonstrated by the growth exceeding expectations by nearly 60% since 2020. The findings may inform future investment strategies as well as policy discussions about leveraging private capital for public benefit.
"Impact investing recognises that the challenges facing society are too large and complex to be solved by any single actor, and encourages innovative approaches that generate measurable social and environmental outcomes alongside a financial return," said Logue.
