
Quantifying the impact of impact investing with AI
Quantifying the impact resulting from the rapid growth in responsible investing and impact investing on SDGs is not straightforward. For instance, investing in green energy (SDG 7) might result in higher energy prices, which could subsequently result in prolonged poverty (SDG 1). Currently, there is only limited understanding on which particular part of the impact can be attributed to the impact investment decision and which part of the impact would have happened regardless of the impact investment decision and state-of-the-art estimation techniques required to process large amounts of non-financial data are still insufficiently developed. This project aims to develop a systematic framework for measuring, quantifying, and comparing the impact of impact investing across different SDGs and indicators, specifically: no poverty (SDG 1), healthy lives and well-being (SDG 3), affordable and clean energy (SDG 7), decent work and economic growth (SDG 8), and climate action (SDG 13). Additionally, the measurement and analysis of the impact of investments on biodiversity (SDGs 14 and 15) will be explored. In addition to public markets, we will also focus on impact investing in private markets, such as venture capital and infrastructure. This will provide a novel framework that will enable insurers and financial institutions to measure the impact resulting from the rapid growth in responsible investing and impact investing.