Reflections on the BVCA ESG Conference – impact & ESG
A host of factors, including the coronavirus pandemic, the increased focus on ESG, and environmental crises, have led to a higher demand for investment in mission-led companies focused on people, planet, and profit. Private capital plays a critical role by investing in the solutions to the environmental and social issues that the world is now facing, whilst still producing financial returns.
At the recent BVCA ESG Conference, a half-day stream was dedicated to exploring themes within Impact Investing and what is needed to drive more investment into the sector. The conversation was kicked off by a panel which looked at the partnerships between public and private impact investors, highlighting the need for private capital, public investment, grants, and a strong policy landscape to invest in impact and achieve the UK levelling up agenda.
The second panel explored what LPs want from impact investing. The panel demonstrated the need for business models that are inherently driven for positive outcomes, whilst demonstrating co-linearity with financial returns. LPs want portfolio companies to demonstrate their commitment to impact by measuring and managing impact over time, committing to targets within legal documentation, and providing annual reporting, data, and KPIs.
The session was concluded by a panel which focused on ‘Making the UK a Centre of Excellence’ and flagged the need for the UK to set itself apart from the EU and US by looking at different specialty areas, such as food justice or social wellbeing. It highlighted that to become a centre for excellence, the UK will require a supportive political and regulatory environment, a strong investment manager market system, and a sturdy pipeline of founder and management teams seeking to create impact alongside profit.
The BVCA Head of Legal and Regulatory policy, Tom Taylor, also hosted a fireside chat with the founder Bike Club, discussing how private capital has helped grow his social impact business.
Impact investing is on the increase, with many firms planning to dedicate more capital to impact investing over the next five years. You can read more on impact investment within the private capital here, or contact the BVCA Head of Sustainability, Harriet Assem.
Neave Lloyd
Policy Executive, BVCA
