News

The coronavirus pandemic has caused immense hardship across the world. But one of the (few) positive side effects of crises is that they drive spectacular examples of innovation. The pandemic has driven some pretty spectacular examples of financial innovation in 2020 in response to both the demand from investors and to the pressing need across the globe from businesses, charities and individuals for emergency funds.

It’s been a very demanding year for everyone. The pandemic has had a terrible effect on individuals, communities and economies across the globe. But this year has also brought positive developments on which we can build, and which show us how important it is to continue working towards our goal: mobilising private sector capital at scale for public good.

We have worked across the pensions industry – with pension schemes, investment consultants, asset managers, policy makers, lawyers and industry experts – to ‘debunk’ some common myths about impact investing and design practical resources that pension schemes can use to start taking action.

We believe that a Green+ Gilt with well-defined environmental and social benefits would help address the lack of investment and productivity gap faced by the UK by upgrading infrastructure, supporting innovation and building skills.

The Impact Investing Institute, the Green Finance Institute and the LSE Grantham Research Institute on Climate Change and the Environment are delighted to welcome the UK government’s announcement to issue a Sovereign Green Bond.

The Impact Investing Institute, together with the Good Economy and Pensions for Purpose, is working on a collaborative project aimed at mobilising more flows of institutional investment to address place-based inequalities and support more inclusive and sustainable development across the UK.

More and more consumers, investors and policy makers are interested in the long-term sustainability of businesses. They want to see companies report transparently on the positive and negative impact of their business activities on the environment and society.

A UK green sovereign bond would finance the green recovery plans the Prime Minister outlined in his keynote speech this week, creating green-collar jobs across the country.

The world is changing, with new challenges relating to people and the planet. Pension money is vulnerable to these challenges, but it also possesses the power to contribute to solutions for the most pressing environmental and social issues of our time.

The last two months have been very productive ones for the Institute. We have been making progress on several different workstreams, including the compatibility of pension trustees’ fiduciary duty and impact investing, impact measurement, management and reporting in the social housing sector.

In my first blogpost of the international series, I suggested that “resilience” should be our new North Star as impact-minded investors – the guiding principle to ensure that we build sufficient resource capacity to absorb adversity and avoid a slide into economic, social and health despair. COVID-19 has laid bare structural and systemic inequities.

The coronavirus pandemic has raised important questions for the global impact investing community. How can we, as impact investors and advocates, be most helpful in supporting communities respond, recover, and build resilience to future crises? How does the pandemic affect our ability to achieve the Sustainable Development Goals?