A new independent review, commissioned by the government and led by senior figures in the financial industry and social sector, has called on the government and financial services industry to increase their commitment to social impact investment.
The report, Growing a Culture of Social Impact Investing in the UK, states that the UK is currently at a “critical point” in the development of social impact investing. It adds that having previously led the way as the asset class grew, the UK is now “failing to keep pace in enabling individuals to make social impact investments".
“We want people to make investments that reflect their values and have a positive impact on the issues they care about,” said Tracey Crouch, minister for sport and civil society. “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.”
Led by Allianz Global Investors' chair Elizabeth Corley, the review urges government to support co-investment in social impact models alongside the financial services industry. “Interest among individuals in seeing their savings and investments doing social and environmental good continues to grow,” said Corley.
The report adds that companies should increase their focus on creating demonstrable positive social impact, alongside financial returns.
Regulatory bodies such as the Financial Conduct Authority and the Prudential Regulation Authority, meanwhile, should continue to embed social impact into regulatory frameworks.