The world needs capital at scale to achieve its climate and sustainable development objectives. This need is particularly acute in developing countries, where the Covid-19 pandemic has further exacerbated the existing $2.5 trillion annual funding shortfall to meet the Sustainable Development Goals (SDGs) by 2030.
While the impact investing market has been growing rapidly, with impact assets under management reaching $700 billion in 2019, even more capital needs to be mobilised to stimulate recovery from the COVID-19 crisis and drive fairer and more sustainable economies in the long term.
Working with our partners in the G7 and across the globe, particularly in developing countries, we want to propose practical solutions to harness private capital at scale for public good in order to facilitate a sustainable and inclusive recovery from the COVID-19 crisis and promote impact-driven economies and societies in the long term.
What we are doing to achieve it
In partnership with the Global Steering Group for impact investment (GSG), we co-led the G7 Impact Taskforce, an independent, industry-led effort backed by the UK Government as part of the UK presidency of the G7 in 2021. The mandate of the Impact Taskforce was to contribute to a sustainable and inclusive recovery from the COVID-19 crisis and, more broadly, to help drive a sustainable, impact-driven global economy.
The Impact Taskforce comprised members from G7 member countries, non-G7 countries and developing countries, as well as independent experts from the private sector – including asset managers, asset owners and corporates. The Taskforce also included representatives from international organisations, academia, and civil society. A full list of the Taskforce members is available here.
The Impact Taskforce was chaired by the Right Honourable Nick Hurd, former UK MP and Minister, and Chair of the Access Foundation for Social Investment.
We led one of the two workstreams of the Impact Taskforce, namely the Instruments and Policies to Scale Impact Investment Workstream. The objective of the workstream was to showcase implementable financing structures and produce a blueprint for Just Transition financing vehicles that can attract financing at scale (including from pension fund investors) to deliver an inclusive and socially beneficial transition to net-zero in developing countries, with a focus on Sub-Saharan Africa. The workstream was chaired by Dame Elizabeth Corley, Chair of the Impact Investing Institute, and comprised a Technical Working Group and an Advisory Panel. Secretariat support was provided by the Impact Investing Institute.
The Instruments and Policies Workstream was complemented by a second workstream on Impact Reporting, Integrity and Transparency, which was led by the GSG. This workstream focused on fostering and facilitating discussions and recommendations for G7 governments and industry around impact transparency, integrity, and trust. This workstream was chaired by Douglas L. Peterson, President & CEO of S&P Global, with secretariat support from the GSG.
Both workstreams of the Impact Taskforce produced technical documents and recommendations that were shared under the UK´s G7 Presidency with Foreign Affairs and Development Ministers, standard setters, and the financial services industry in December 2021.
You can find the Impact Taskforce’s report “Time to deliver: Mobilising private capital at scale for people and planet” and Workstream A’s report “Financing a better world requires impact transparency, integrity and harmonisation” here and both our full report and Summary Report below.
Technical Working Group
The full list of Advisory Panel members is available here.