Impact Investing Institute’s Post

"This is a moment of profound potential. Government now has a unique opportunity to harness the power of private capital in support of the common good..." Impact Investing Institute calls on the new Government to build a resilient and equitable #impacteconomy via a National Strategy for Impact Investing. Impact investors can support societal goals and help to alleviate pressure on strained public finances by scaling much-needed solutions to our most urgent sustainability challenges. #impactinvesting #impacteconomy #positiveimpact

https://lnkd.in/g_bwW8br Having lived in the UK for long time, I know what a failed pension system look likes. Massive and expensive resources focussed on an archaic absurdly expensive DB system, and a DC system that came 25 years too late, where contributions are too low to provide an adequate pension for an entire generation. Australia has an exceptional system, but it is not perfect. I always thought the idiotic performance test was just another Coalition attempt to beat up the industry funds. An obsession, they simply cannot let go. If there is to be a test, it must allow investments not yet thought of, not hamstring funds into investing in conventional indices. There also needs to more options available where the focus is on income generation and capital preservation. Chasing 10 per cent returns with aging populations, declining world trade, and no more “free money” from central banks, is foolhardy. Its not going to happen. As for the performance test, funds should only be measured on risk vs return. This is not exactly rocket science.

Five priorities for the next government ✅ The next government will need to prioritise #economicgrowth if it wants to reverse the UK’s budget and social issues. For too long, the focus has been on what is going wrong over what is going right. The UK is a leader in #sustainability and has a strong ecosystem for growth capital - support and investment in both of these areas can generate good financial returns. Let’s get over the public versus private market obsession and create a stable policy environment for tomorrow’s growth. If the victor in next month’s #election wants to restore London’s reputation as a global financial centre, it will need to leverage the UK’s strengths and refresh its capital culture. This will mean mobilising institutional and private capital to support energy transition, sustainable infrastructure and growth companies, and encouraging entrepreneurialism and investment for positive impact across the UK. 1. Focused commitment to growth Entrepreneurial ventures and sustainable transition businesses need to be supported by both public and private capital markets. A commitment not to raise income tax will facilitate reinvestment and additional incentives would foster growth and innovation that drives growth. 2. Supporting the UK’s growth businesses Work with private capital to fill the funding gap holding growth companies back across the UK. Abolish the sunset clause for Venture Capital Trusts (VCTs) and incentivise investment from institutional investors to support high-growth companies that drive job creation and innovation. 3. Reinvigorating the UK’s capital markets Encourage and rewarded entrepreneurialism and enable investors to allocate capital where it is needed on the basis of outcomes rather than structure or governance. Get over the obsession with public versus private markets and focus on creating depth of liquidity for growth capital in general. 4. Leveraging #pensionfunds for regional growth Build on the Mansion House reforms and revive the levelling-up agenda by facilitating pension fund investment in sustainable new infrastructure to support job creation and business expansion in regional areas. Many well-funded LGPS are still cash flow negative and need income-generating investments that can be found across the UK in sustainable infrastructure that will make a real impact. 5. Mandatory sustainability commitments Establish mandatory regulatory frameworks to encourage more private and institutional capital investment in supporting nature recovery. Investors want certainty and stability that can’t be found in voluntary commitments. Building on the Environment Act 2021, will attract international capital, meet demand from UK institutional investors, and promote a more sustainable economy. 

The next UK government will face unprecedented challenges: a climate and biodiversity emergency, rising inequality against worsening health outcomes, and an economy in decline. Tackling these crises demands bold action and ambitious leadership. The financial system will be integral to securing a sustainable future for the UK. Our new manifesto, “Responsible Investment for a Better Future” sets-out six key policies which will help the next government to establish the UK as a global leader in green finance, drive investment towards our transition to net zero, and ensure the financial sector acts in the best interests of people and planet: 1️⃣ Deliver a financially-secure retirement for savers and help to build a better future for us all, by reforming pensions trustees’ fiduciary duty. 2️⃣ Tackle greenwashing, by expanding the FCA’s new sustainability regulations to cover major investment funds and pension schemes. 3️⃣ Hold companies to account for their social and public health impacts, by introducing mandatory Sustainability Disclosure Requirements (SDR), including social and health measures. 4️⃣ Better protect nature, by adopting mandatory Taskforce on Nature-related Financial Disclosures (TNFD) at pace. 5️⃣ Address racial inequality, by introducing mandatory ethnicity pay gap reporting for companies with more than 250 employees. 6️⃣ Raise standards and empower investors, by strengthening the current stewardship regime and making regulation smarter. #responsibleinvestment #sustainablefinance #policy #manifesto #ukelection2024

Together with Big Society Capital, Big Issue Invest and many others, we want to help the next government tackle pressing social issues and improve living conditions in the UK. To achieve this, there must be more private as well as public investment, both of which are chronically low as a share of UK GDP. Based on our organisations' track record in attracting investment into addressing the UK’s social challenges whilst generating sustainable and responsible financial returns, we and 35 organisations and alliances propose four measures to unlock more private investment across the UK. We’re urging Government to: 🤝 Create a Local Community Growth Fund to attract private investment into opportunities identified by communities across the UK. 💡 Introduce incentives that encourage investors, whether banks, pension funds, or foundations, to invest for long-term sustainable and inclusive growth. 🔍 Improve financial inclusion and access to fair banking by establishing a Financial Inclusion Taskforce. 🚀 Spend smarter, using tested outcomes models, to mobilise private investment for more cost-effective delivery of public services like healthcare. To learn how private investment can be harnessed to improve living standards and reduce poverty, now and in the future, visit https://shorturl.at/erzT0 #UKEconomy #GeneralElection #BetterBritain

The Financial Times has published an open letter led by Big Issue and Big Society Capital and signed by our chief executive Bevis Watts, alongside other social investment partners and peers. We want to help the next government tackle pressing social issues and improve living conditions in the UK. To achieve this, there must be more private as well as public investment, both of which are chronically low as a share of UK GDP.   Based on our organisations' track record in attracting investment into addressing the UK’s social challenges whilst generating sustainable and responsible financial returns, we and 35 organisations and alliances propose four measures to unlock more private investment across the UK.    We’re urging Government to:   🤝 Create a Local Community Growth Fund to attract private investment into opportunities identified by communities across the UK. 💡 Introduce incentives that encourage investors, whether banks, pension funds, or foundations, to invest for long-term sustainable and inclusive growth. 🔎 Improve financial inclusion and access to fair banking by establishing a Financial Inclusion Taskforce. 🚀 Spend smarter, using tested outcomes models, to mobilise private investment for more cost-effective delivery of public services like healthcare   To learn how private investment can be harnessed to improve living standards and reduce poverty, now and in the future, visit https://shorturl.at/erzT0    #UKEconomy #GeneralElection #BetterBritain Responsible Finance Snowball Tribe Impact Capital Good Finance UK  

#ESG flees for a final bloodletting to #Europe. https://lnkd.in/eZ9Q_Cet #Pensionfunds #BlackRock #Governance #RichardFeynman #LarryFink #PensionsInvestments #Government #Finance #Excellence #EuropeanUnion #Renewal #Entropy #AssetManagement #AlbertEinstein #Investing

How is your superannuation contributing to Australia's future and what is the future of your superannuation? https://lnkd.in/gR2pQvvr Don't miss this opportunity to hear from Super Members Council CEO Misha Schubert, IFM Investors Chair, Cath Bowtell and a panel of industry experts discussing what is needed to ensure the sustainability of Australia's superannuation system and it's power to drive investment and positive change. #superannuation #sustainability #investment

This isn't quite a full endorsement of Labour's planning and green investment plans from a group of leading insurance, pension, and investment firms, but it is not far short. There is a pretty clear consensus on what is needed from the next government to get the UK out of its investment doldrums. Going to be fascinating to see if whoever forms the next government can hit the ground running and deliver such reforms. https://lnkd.in/esHdp5-v

With the Prime Minister announcing an early UK general election in July, we're excited to highlight social impact investment as a vital tool for the future Government to address a range of social issues, from NHS waiting lists to youth unemployment. We will continue working with key decision-makers at the heart of Government to focus on the following priorities: 🌱 Spend smarter – allocate existing spend to projects that crowd in more social and private investment 💪 Put people at the heart of public services – shift to commissioning for outcomes so that the Government only pays for genuine positive and measurable change to people’s lives ✨ Integrate social impact investment across government – given its vital role in tackling complex issues, we hope to set up a cross-government strategy driven by a central team in the Cabinet Office or Treasury. Find out more in our video⬇️ #BetterBritain #SocialImpactInvestment