Unlocking capital: increasing institutional investors’ allocation to Impact Investing: Overcoming barriers and unlocking opportunities through regulation, measurement, and strategic alignment

Van Wassenhove, Olive
(2025)

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VanWassenhoveOlive_09332300_2025.pdf
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VanWassenhoveOlive_09332300_2025_Annexes.pdf
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Details

Supervisors
Denis, Sabine
Faculty
Louvain School of Management
Degree label
Master [120] en sciences de gestion, à finalité spécialisée
Abstract
enThis thesis explores the limited involvement of institutional investors in the growing field of impact investing. This lack of engagement is surprising given the sector's potential to make a significant contribution to achieving the Sustainable Development Goals (SDGs) by 2030. Although interest in the sector has grown, the majority of capital still comes from smaller players, and institutional investors - who manage large volumes of funds - remain insufficiently engaged. The research first identifies theoretical obstacles to institutional participation, such as regulatory constraints, challenges related to measurement and reporting, and the specific characteristics of impact investing. It then draws on semi-structured qualitative interviews with professionals in the field to assess the most critical challenges in practice and propose actionable solutions. These include clearer definitions and standards, regulatory incentives and strategic adjustments within investment institutions.