A new independent review sets out how government and the financial services industry can work together to build a culture of social impact
The review was commissioned by the government and led by Elizabeth Corley, chair of Allianz Global Investors, and an independent Advisory Group made up of 60 senior representatives from across the financial industry and social sector.
Entitled Growing a Culture of Social Impact Investing in the UK, the report outlines key recommendations to help grow the number of social impact investors across the country and ensure financial providers help people support the issues they care about through their savings and investment choices.
The Advisory Group found there is a growing interest among individuals for their investments to have a positive impact on society, as well as produce financial returns. However the social impact investing market remains underdeveloped.
It urges the government and industry to support co-investment and increase the number of social impact investment opportunities in the market; strengthen competence and confidence within the financial services sector and make it easier for people to invest.
They also recommend that government and the social sector should look to increase reporting of the growth of the social impact investment market to give the financial services community a better understanding of the non-financial outcomes. The Advisory Group also underlined its commitment to building on their work to date to sustain momentum in developing the UK’s social impact investment market.
The report has today been welcomed by Tracey Crouch, Minister for Sport and Civil Society, and Stephen Barclay, Economic Secretary to the Treasury,
Tracey Crouch, Minister for Sport and Civil Society, said: "We want people to make investments that reflect their values and have a positive impact on the issues they care about. These recommendations are an important first step and I look forward to working closely with the industry to bringing social impact investment into the mainstream."
Stephen Barclay, Economic Secretary to the Treasury, said: "Social impact investing has the power to make a positive change in society, while also bringing positive financial returns. It’s a win-win, which is why demand is growing. The market has enormous potential, but we need to make it easier for people to make a social impact investment. Today’s recommendations will help make this possible."
Elizabeth Corley, vice-chair of the Advisory Group, added: "Our aim in undertaking this work was to broaden discussion and encourage wider debate around social impact investing to catalyse an increased focus on developing the market. The energy and ideas contributed by the members of the group demonstrate the degree of interest there is in moving social impact investing forward."
Drawing on the deep experience of our members, we have outlined a number of recommendations, allocated to specific market segments, that we believe will contribute to building a sustainable culture of social impact investing in the UK. Interest among individuals in seeing their savings and investments doing social and environmental good continues to grow and we hope this report and its recommendations will contribute to the work being done to keep the UK at the forefront of the social impact investing market.
Notes to editors
Press release originally published on gov.uk
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