Britain Could Become Greener and Fairer by Unlocking £300bn Impact Investing Opp...

Oct 2017
United Kingdom, October, 17 2017 - New research from UK National Advisory Board on Impact Investing suggests shifting investment focus could rebalance economy and promote green growth in the UK.

Britain could make crucial progress towards delivering the UN's Sustainable Development Goals (SDGs) and driving greener, fairer growth if it can unlock the £300bn opportunity presented by the fledgling impact investment community.

That is the conclusion of new research from the UK National Advisory Board on Impact Investing (NAB), which was released yesterday and which highlights how the government, business and finance community could better promote impact investment strategies.

Recommendations in the paper range from urging the government to establish a £2bn Inclusive Economy Catalyst Fund to jump-start investment in neglected communities to calling on pension providers to develop 'pensions with a purpose' that target investment at ethical projects.

The paper warns other European nations such as the Netherlands have already got to work establishing a clear plan for aligning investment practices with the UN SDGs and argues the UK is in danger of falling behind if it does not soon follow suit.

"Impact investing has shown its value across multiple sectors and asset classes, achieving strong returns on investment while also financing new solutions to some of the UK's most difficult social and environmental challenges," UK NAB chair Michele Giddens said. "Over the last few years we have seen an explosion of interest globally, with more and more mainstream investors coming into the space. We are reaching the tipping point; we hope this report can help the sector move from the margins to the mainstream and, in the process, enable the UK to build a more inclusive and sustainable economy."

The UK NAB is part of the Global Impact Investment Steering Group, which was spun out from the Social Impact Investment Taskforce that was launched by David Cameron in 2013 during his presidency of the G8. 

Together the 13 member nations of the Steering Group aim to scale impact investment that will drive positive social and environmental change around the world. 

Other recommendations from the UK paper include encouraging government to consider the contribution to 'social value' in all tender decisions and the creation of a Purposeful Business Taskforce where business leaders can develop best practice guidelines and incentives for driving their adoption.

The report's proposals would help to strengthen the UK's role in international finance, accelerate the rise of purposeful business and procurement, empower savers to invest in line with their values and help the UK adopt an inclusive sustainable development agenda, NAB said.

Source : Business Green

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