A new survey of more than 1,000 financial advisors shows impact investing stands to become a $650 billion business in the near term.

The survey was part of a report, Gateways to Impact (see gatewaystoimpact.org), by a team of researchers and supported by the Rockefeller Foundation, Deutsche Bank, Envestnet, Metanoia Fund and Veris Wealth Partners. The project managers were Justin Conway and Art Stevens from Calvert Foundation, and the research team was from Hope Consulting.

Conway told me that he hopes the report will bring strong interest from the FA community to impact investments because it shows just how deep the potential is.

Indeed, it does.

Here are some of the highlights: 38% of FAs expressed strong interest in recommending sustainable investing to their clients, while 72% expressed some interest. Those who expressed strong interest were mostly females with advanced certifications working at national RIA firms and who had average per client assets between $1 million and $10 million. Interestingly, nearly half of all FAs already provide advice on sustainable investments to their clients, and nearly one-quarter have recommended a sustainable investment within the last three years.

What's holding many advisors back (50%) from recommending sustainable investments more is what they say is the lack of performance track records in the space. Almost as many (47%) say financial performance and the perception of insufficient client demand (45%) are also hindrances. Forty two percent of FAs cite the lack of quality research and information as the guiding factor in their lack of recommendations.

All that said, 69% of FAs saw impact investing and sustainable investing as a way to grow their practices, and said they would allocate for one-third of their client base between 10% and 20% of their assets under management to sustainable investments. (That's how the $650 billion number was figured.)  

To be sure, the report is more detailed and cites ways FAs can stay ahead of the curve and differentiate themselves through impact and sustainable investing. But the bigger point is that advisors are keen to become bigger impact investors. It's up to people like me and others to provide more education so they can do so. After all, this isn't a numbers game. This is about solving some of the biggest issues facing the world today through investing, whether they be social, environmental, or otherwise.

Our forthcoming impact investing workshop in Denver on July 29 (see more about this via our events section) is one step in this direction. Our forthcoming directory of impact managers is yet another. Already we are blasting a monthly e-news bulletin on impact investing to the FA community (if you haven't subscribed, you should). And there are other plans in the mix.

Still, the turning point for impact investing will be client demand. Despite the findings in the report, the reality is that clients actually do want impact and sustainable investments in their portfolios. They want more. Other studies show this. They just don't know what to ask for.

Once the communication gap is bridged, and both FAs and clients learn more about the impact and sustainable investing space and see the opportunities, I believe the $650 billion mark will be far eclipsed.

For now, let's learn more about the gateways to impact.