How to Become an Impact Investing Analyst (2024)

OVERVIEW

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 aMaster 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.

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EDUCATION & BEST DEGREES

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 infinance,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 anMBA. 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 theGlobal 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.

How Much Does an Impact Investing Analyst Make?

$49,153

Glassdoor reports that impact investment analysts or associates earn$49,153 per yearon 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 in54,350 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.

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