The urban world is facing a double demographic hit on economic growth. Between 2000 and 2012, an expanding population drove nearly 60 percent of economic growth in the world’s large cities, but those days of easy urban growth are over. First, global population growth is slowing due to declining fertility rates and an aging population.
Local issues attract some to social impact investing, as the rise of place-based investment models shows. Others, however, take a broader approach, letting global megatrends – such as population shifts and strains on natural resources – guide their socially conscious investment choices. “Megatrends are a set of interconnected patterns and movements that impact societies and countries,” said Marsal