Our goal

We want to increase the flow of public and private capital to address environmental and social challenges. Those capital flows are vital in achieving the transition to a net-zero carbon world, which should be inclusive and socially beneficial – a concept commonly referred to as a ‘just transition’. 

What we have done to achieve it

With the backing of a large group of leading investors and industry bodies, we developed a joint proposal for a UK Green+ Gilt, a sovereign bond combining social with environmental impact.

The coronavirus pandemic has shown that the need to address both the consequences of climate change and the social impact of a transition to a net-zero economy has never been more important. Our Green+ Gilt proposal argues that environmentally sound investments should also create high-quality jobs and skills and contribute to “levelling up” regional inequalities in the UK, with local solutions targeting deprived areas and communities.

Market appetite for bonds combining social with environmental impact

The proposal was developed in partnership with the Green Finance Institute and the London School of Economics’ Grantham Research Institute on Climate Change and the Environment, and with input from fixed income market participants. It also gained the support of 40 leading asset owners and managers, representing more than £10 trillion in assets, as well as influential professional bodies. In October 2020, shortly after the publication of our proposal, the UK government announced its plan to issue the first of a series of green bonds in 2021.

To build on the success of our Green+ work and help address the need for the sovereign green bond to deliver jobs, skills and levelling up, we have established a working group to develop robust and measurable metrics for these social impacts that could be used in the design process.

Publications

Our paper, “The Green+ Bond: How EU Sovereign and Corporate Issuers could deliver Green Sovereign Bonds with Social Co-Benefits”, co-authored with the LSE’s Grantham Research Institute, emphasises the strategic potential for a green sovereign bond with well-defined social and economic benefits to support the European Commission’s new Strategy for “financing the transition to a sustainable economy.”

In September 2021, the Institute submitted its response to the Financial Conduct Authority’s consultation papers CP21/17 and CP21/18 on enhancing climate-related disclosures. The Institute strongly welcomes these timely consultations and the FCA’s commitment to widening the applicability of its requirement to make climate-related disclosures.

In July 2021, the Platform on Sustainable Finance published its first draft report on a proposal for a social taxonomy, which assesses the merits of a social taxonomy in addition to the green taxonomy, and explores possible avenues to complement the existing taxonomy. The Institute strongly welcomes the EU’s foresight in developing a social taxonomy in addition to the green taxonomy and, in August 2021, the Institute submitted its response to the Platform’s consultation on the draft report. The document in this post outlines the key excerpts from our response.

News & Views

The Impact Taskforce, established under the UK’s 2021 presidency of the G7, is pleased to announce the group’s members.

The new Taskforce is composed of global leaders from the world of business, public policy, and the social sector, including senior figures from BlackRock, Temasek, Schroders, Mahindra Group, Morgan Stanley, S&P Global, BASF, the World Bank, the International Monetary Fund and the European Commission.

UK creates Impact Taskforce under its G7 presidency led by the Global Steering Group for Impact Investment and the UK’s Impact Investing Institute. The new initiative will focus on fostering and facilitating discussions and recommendations around impact transparency, integrity, and trust. The Taskforce will also investigate ways to create financial vehicles that can deliver investments for the benefit of people and the planet worldwide. In doing so, it will actively look to advance impact investment in low- and middle-income countries hit hard by the pandemic.

The Impact Investing Institute welcomes today’s announcement that the UK’s new green bond framework will include the reporting of social co-benefits, in addition to…

Events

Held in partnership with the University of Glasgow, this event will feature two panel discussions focusing on issues which are central to the ongoing development of sustainable finance in the UK: green bonds, and fiduciary duty and sustainable investment.

As part of the “All4Climate – Italy 2021” programme and co-hosted with Social Impact Agenda per l’Italia, this event will explore how innovative green bonds that associate financing for climate action with social benefits can be mobilised to finance a just transition to net-zero.