The UK: A Centre of Excellence in Impact Investing
The UK, along with a range of countries, is facing challenges related to economic growth, overstretched public services, rising inequalities and a significant push to transition to Net Zero emissions. In the context of this, there is a strong imperative to work together to build an investment ecosystem that prioritises its effect on people and planet and drives progress on the UN Sustainable Development Goals (SDGs).
Impact investing is investment made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Private Capital – through impact investing – is able to support with these challenges and deliver financial, economic, and social value to the UK.
The aim of the report is to encourage further collaboration in the impact economy, to invite investors interested in sustainable finance and impact investing to consider the UK for the establishment of funds, products, and services and for the UK to continue to lead the way in market development.
This report, produced by the City of London Corporation in partnership with the BVCA, demonstrates the opportunity for the UK to continue to lead and grow its position as a Centre of Excellence in impact investing. A Centre of Excellence, in summary, has specialised expertise delivering outstanding research and practice. The report assesses the UK against five criteria of a Centre of Excellence in impact investing including: clear mission, knowledge and expertise, scale, leading talent, and capacity building.
Market trends that could be harnessed by the UK for further growth of the global impact investing market are outlined in the conclusion of the report. These include:
- Championing innovation in financing social and environmental goals;
- Meeting the demand for impact and purpose driven jobs; and
- Leading the conversation on best practice and moving the dial forward.
