The Impact Investing Institute welcomes the announcements by the Chancellor in today’s Budget which show the UK’s commitment to financing a sustainable future for all.
Sarah Gordon, Chief Executive of the Impact Investing Institute, says: “The UK’s green gilt programme will raise much-needed funds to address the climate emergency, and today’s commitment to deliver explicit social benefits alongside environmental impact is a great step forward. This demonstrates the ability of the UK and its financial services sector to show innovative leadership in sustainable finance.”
“We look forward to supporting the Government as it develops its thinking on these social benefits, which we hope will secure green jobs and support communities across the country that have been hit hard by the coronavirus pandemic.”
The Institute welcomes the range of other measures announced today that will also deliver positive social and environmental outcomes, such as the announcement of a green savings product for individuals, the extension of Social Investment Tax Relief (SITR), and the focus of the new National Infrastructure Bank on creating jobs and delivering green growth.
“It is extremely positive that the Government is making it possible for individuals to save for positive environmental impact, by announcing a green retail savings product that will be launched in the summer. We know that people want to make a difference with their money and green retail bonds will be available to all in answer to that need. It will be one of many ways for individuals to demonstrate the power in their pockets, which comes on the back of a larger consumer trend to demand a greater commitment to sustainability from companies around the globe,” says Sarah Gordon.
Together with the Green Finance Institute and the LSE’s Grantham Research Institute, the Impact Investing Institute recently advised the Government that such a savings product would be a quicker and simpler route to capitalising on retail demand than, for example, retail distribution of a Green Gilt, but would require a credible and robust framework to maintain investor support.
With the pandemic’s devastating impact on the social sector in particular, the Chancellor’s decision to extend Social Investment Tax Relief (SITR) to April 2023 is a much-needed relief for many charities and social enterprises which are often deeply embedded in communities around the country.
The Institute developed a Green+ Gilt proposal in collaboration with the Green Finance Institute (GFI) and the London School of Economics Grantham Research Institute (GRI), which emphasised the potential of a green sovereign bond with well-defined social and economic benefits.
We recently contributed to an E3G paper outlining how the National Infrastructure Bank can drive a productive, sustainable, and inclusive green recovery.
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