Investment Banker Career Guide
How to Become an Impact Investing Analyst
“Investing” usually conjures up the idea of buying stocks, bonds, mutual funds, and other financial instruments with the goal of making a profit. But the growing field of impact investing is unique in its focus on generating not only financial returns but also measurable environmental and social impact to create a more equitable world.
By investing in organizations and initiatives that have a positive effect on their communities, impact investors address challenges in sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible essential services, including housing, healthcare, and education. Impact investing analysts leverage financial capital to accumulate wealth and do good in the world.
What Is an Impact Investing Analyst?
An impact investing analyst evaluates investment opportunities based on both financial and impact considerations. They’re responsible for conducting research, analyzing data, and measuring the social and environmental impact of potential investments.
In comparison to traditional investing, which focuses solely on generating financial returns, impact investing takes a more holistic, often philanthropic approach. In traditional investing, utility or benefit comes from consumption, not investment. In impact investing, utility or benefit to an investor varies depending on the investment's environmental, social, and governance (ESG) impact along with its inclusion impact.
To become an impact investing analyst, most employers expect you to hold a Master of Business Administration (MBA) degree. Relevant experience in finance, data analysis, or a related field is also typically required. Future impact investing analysts should also focus on developing strong analytical skills, excellent communication skills, attention to detail, and a passion for creating positive impact is important to perform successfully in this role. In order to be successful in this role, Impact investing analysts often need to explain complex financial and impact data to a variety of stakeholders.
What Does an Impact Investing Analyst Do?
Impact investing analysts support day-to-day impact measurement and management work. This includes supporting annual impact data collection and analysis and contributing to annual impact reports. Impact investment analysts are responsible for:
- Supporting deal sourcing and initial evaluations.
- Performing detailed due diligence on potential impact investments, including impact forecasting, management, and product, market, and financial analysis.
- Helping refine back-end investment infrastructure through nurturing co-investor networks of like-minded funds, accelerators, and corporates.
- Conducting sector and industry analyses to help sharpen investment focus.
- Helping review and manage a portfolio of global, high-impact ventures using innovations in philanthropy to solve pressing social and environmental challenges.
- Analyzing and distilling portfolio findings.
How Do I Become an Impact Investing Analyst?
Becoming an impact investing analyst requires a combination of relevant education and work experience. It’s required that aspiring professionals in this field earn a bachelor's degree in finance or economics, but candidates with MBAs are typically preferred by employers. Since the role of an impact investment analyst is not entry level, applicants should first work or intern in finance, data analysis, or similar positions in the financial industry.
To become an impact investing analyst, you can follow these steps:
1. Earn a bachelor's degree in finance, economics, or a related field. This will provide you with a foundational understanding of finance, accounting, and investment analysis.
2. Get an internship in finance to gain relevant skills and learn about investing. This will give you practical experience and help you develop skills in financial modeling, data analysis, and investment analysis. If you are particularly interested in creating a positive impact in your career, consider seeking a role within a philanthropic foundation.
3. Earn a master's degree in finance or an MBA. This advanced degree will provide you with a deeper understanding of finance, investment analysis, and impact investing and will make you more competitive in the job market.
4. Apply for an entry-level job in finance. Some examples of entry-level positions include financial analyst, investment analyst, research analyst, data analyst, junior portfolio manager, and operations analyst. Working in any of these roles can help you gain the skills and experience you need to eventually become an impact investment analyst. Look for opportunities with organizations that are committed to galvanizing change, such as impact investment funds, philanthropic foundations, or impact-driven companies.
Specialized certifications can also help you accelerate your career in impact investing. Organizations such as the Global Impact Investing Network (GIIN) offer certification programs for impact investing professionals. There are also many courses and workshops available on topics such as impact measurement and management, social entrepreneurship, and sustainable finance.
Best Degrees for an Impact Investing Analyst
Finance – B.S.
This online finance program is career-focused so you will gain...
This online finance program is career-focused so...
This online finance program is career-focused so you will gain relevant industry skills.
- Time: 70% of graduates finish similar programs within 42 months.
- Tuition: $3,575 per 6-month term.
- Courses: 41 courses in this program.
Some careers and jobs this business degree will prepare you for:
- Financial analyst
- Finance director
- Investment banker
- Insurance agent
- Accountant
The competency-based model at WGU allows you to move as quickly as you can master the material, and do your coursework on your schedule. Flexibility is key with the B.S. in finance at WGU.
College of Business
Accounting – B.S. Business Administration
Have a knack for numbers or fine-tuning finances?...
Have a knack for numbers or fine-tuning finances?...
Have a knack for numbers or fine-tuning finances?
- Time: 62% of graduates finish within 36 months.
- Tuition: $3,575 per 6-month term.
Some careers and jobs this business degree will prepare you for:
- Accounting manager
- Financial director
- Vice president of finance and operations
- Chief financial officer
- Forensic accountant
Take your first step toward CPA certification and learn how to use GAAP, ledgers, and journals.
College of Business
Master of Business Administration
The flexible MBA program you need, focused on business...
The flexible MBA program you need, focused on...
The flexible MBA program you need, focused on business management, strategy, and leading teams:
- Time: Graduates can finish in 12 months.
- Tuition: $4,530 per 6-month term.
Sample careers and jobs this business degree will prepare you for:
- President and CEO
- Vice president
- Executive director
- Chief strategic officer
Our competency-based model gives you an innovative learning experience you won't find anywhere else—and our MBA grads tell us they loved accelerating their program to see a faster ROI.
College of Business
Our online university degree programs start on the first of every month, all year long.
No need to wait for spring or fall semester. It's back-to-school time at WGU year-round. Get started by talking to an Enrollment Counselor today, and you'll be on your way to realizing your dream of a bachelor's or master's degree—sooner than you might think!
What Skills Does an Impact Investing Analyst Need?
Being an impact investing analyst requires a unique set of skills and abilities that combine financial analysis with social and environmental impact assessment. Impact investment analysts must:
- Enjoy data analysis and writing: An impact investing analyst must be comfortable working with data, conducting research, and analyzing information. They should be able to communicate findings effectively through clear and concise writing.
- Be proficient in Excel, relational databases, and data visualization tools: These professionals should have strong technical skills, including proficiency in tools such as Excel, Airtable, Power BI, Salesforce, and other databases and visualization tools to collect and analyze data.
- Remain open to different perspectives and learning new methods of analysis: Impact investing demands a diverse range of perspectives, and analysts must be open to learning new methods and working with various stakeholders throughout their career.
- Possess skills in prioritizing competing demands: A skilled impact investing analyst can juggle competing priorities, meet deadlines, and work effectively with teams that have varying priorities and perspectives.
- Be intellectually curious and ready to take risks: Impact investing requires creativity, innovation, and a willingness to think big in pursuit of mobilizing change. As such, professionals in this field should be intellectually curious, able to generate new ideas, and willing to take calculated risks.
- Have a “can-do” attitude and be focused on implementing solutions: An impact investing analyst has a positive, solution-focused outlook, works collaboratively with others, and remains committed to achieving positive social and environmental outcomes through their work.
How Much Does an Impact Investing Analyst Make?
$49,153
Glassdoor reports that impact investment analysts or associates earn $49,153 per year on average. The top 25% of earners make between $63,000 and $83,000 per year. Salaries for impact investing analysts can vary depending on factors such as location, experience, and place of work.
What Is the Projected Job Growth?
5%
The Bureau of Labor Statistics projects a 5% growth rate for financial and investment analysts, including impact investing analysts, from 2019 to 2029, which will result in 54,350 new jobs.
The BLS attributes this growth to the increasing demand for financial analysis and economic advice as businesses seek to make more informed investment decisions and improve their financial performance. In addition, the growing interest in sustainable finance and impact investing is expected to create new opportunities for impact investing analysts in the coming years.
Where Does an Impact Investing Analyst Work?
Varies
Impact investing analysts can work in a variety of settings, including larger companies, organizations, and investment agencies. The need for impact investing analysts is becoming increasingly important as more companies and organizations recognize the value of investing in socially and environmentally impactful ventures.
The demand for impact investing analysts is growing across a range of industries and sectors as more organizations seek to integrate impact investing into their investment strategies. As a result, there are many opportunities for impact investing analysts to work in a variety of settings and make a positive change through their work.