EMBARGOED MONDAY 15th SEPTEMBER 2014 00.01
TASKFORCE CALLS FOR ACTION TO UNLEASH $1 TRILLION IN
SOCIAL IMPACT INVESTMENT
The Taskforce on Social Impact Investment, established by UK Prime Minister David Cameron under
the UK’s presidency of the G8, and chaired by Sir Ronald Cohen, is today launching its Taskforce
Report in Downing Street, London, alongside Chancellor of the Exchequer, the Rt Hon George
Osborne.
The Report, entitled Impact Investment: The Invisible Heart of Markets – Harnessing the power of
entrepreneurship, innovation and capital for public good, calls on governments and the financial
sector to take action to unleash $1 trillion of private sector impact investment to tackle social
problems.
The UK Chancellor of the Exchequer the Rt Hon George Osborne, has described the Report as,
“compelling and comprehensive”, and that he “looks forward to implementing many of its proposals.”
The report highlights the potential that impact investment has to help solve some of society’s most
pressing issues, such as caring for children and the elderly, community regeneration, financial
inclusion, housing and prisoner reoffending. Social Impact Investments are investments made into
businesses and social sector organisations, directly or through funds, with the intention of generating
a measurable, beneficial social and environmental impact alongside a financial return.
The report lays out several clear recommendations, devised by government and private sector
experts from across the G7, EU and Australia, which include:
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Encouraging pension funds and providers of tax-advantaged savings schemes and products to
include impact investments as part of their offering.
Enabling impact-driven businesses to lock-in their social mission through legal forms and
removing regulatory obstacles around fiduciary duty.
Expanding regulatory and tax incentives offered for investment in social enterprises and
charitable organisations, enabling investors to offset their impact investment income against tax.
Establishing a kitemark for impact investment products to make them quality certified,
accredited, recognisable and differentiated in a complex marketplace.
Developing social impact bonds and development impact bonds.
Appointing a senior government Minister to champion impact investment within and beyond
government.
Reforming legal and regulatory frameworks for charitable organisations to help them to embrace
entrepreneurial risk-taking and innovation where it furthers their mission.
Publishing better and clearer data about the cost to government of addressing social issues to
encourage more impact investment participants to the market place.
The report also:
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Calls on charitable foundations and trusts to allocate part of every charitable endowment and
high net worth investment portfolio to impact investments.
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Encourages mainstream investors and the wider public to engage in impact investment by
providing some investment protection.
Calls on investors, including foundations, pension funds, sovereign wealth funds and
independent investment managers to consider impact, risk and return in making investment
decisions. Where investors wish to invest in impact-driven businesses, they can encourage them
to pursue specific measurable social impact.
Calls on the G20, ASEAN, OAS, and the African Union to put on their agendas the development
of social impact investment
Calls on Inter-governmental institutions such as the World Bank, IFC and regional development
banks to play a leading role in a new market for social impact and development impact bonds.
Calls on the United Nations, as it resets its Millennium Goals in 2015, to support impact
investment as an innovative way of tackling social issues that constrain private sector
development and economic growth.
Commenting on the Report, the Chancellor of the Exchequer the Rt Hon George Osborne, said:
“This is a compelling and comprehensive report. It not only demonstrates the UK's leadership in the
crucially important issue of social investment, but it articulates what still needs to be done to unleash
new funds. This report sets out a clear plan of action for governments and markets and I look forward
to implementing many of its proposals.”
Commenting on the Report, Sir Ronald Cohen said:
“ This is not about increasing or reducing public expenditure, but helping government to benefit from
innovation and private sector capital in order to achieve more impact with the money it has. In driving
the achievement of impact, social impact investment harnesses the forces of entrepreneurship and
capital and the power of markets to do good. It brings the invisible heart of markets to guide their
invisible hand.”
NOTES TO EDITORS:
The full list of recommendations can be found in the report, here: www.socialimpactinvestment.org/keyfindings
The full report can be downloaded here: www.socialimpactinvestment.org
About the Taskforce:
In June 2013 David Cameron, as Chair of the G8, launched an independent Taskforce and set it the objective of reporting on
“catalyzing a global market in impact investment” in order to improve society.
The Taskforce comprises 22 people, including one government official and one representative of the social or private sector
from seven countries and the EU, as well as one observer from Australia. To inform the work of the Taskforce there are also
eight National Advisory Boards and four International Working Groups to address the challenges of measuring impact, asset
allocation, mission in business and international development. The UK Cabinet Office has acted as Secretariat to the Taskforce.
Investors holding $45 trillion have committed to incorporate social factors into their investment decisions. The amount
invested by the 125 leading impact investors is forecast to grow by 20% this year (JP Morgan). J.P. Morgan estimate that $10.6
billion that can be broadly classified today as impact investment was invested in 2013.
Members of the Taskforce:
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UK: Sir Ronald Cohen (Chair) and Kieron Boyle (Cabinet Office)
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Canada: Tim Jackson (MaRS Centre for Impact Investing) and Siobhan Harty (Employment and Social Development
Canada)
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European Union: Peter Blom (Triodos Bank) and Ulf Linder (European Commission)
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France: Hugues Sibille (Crédit Coopératif) and Nadia Voisin (Ministry of Foreign Affairs) / Claude Leroy-Themeze
(Treasury, Ministry of Economy and Finance)
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Germany: Brigitte Mohn (Bertelsmann Foundation) and Susanne Dorasil (Ministry for Economic Cooperation and
Development)
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Italy: Giovanna Melandri (Human Foundation) and Mario Calderini (Polytechnic University of Milan) / Mario La Torre
(La Sapienza University Rome)
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Japan: Shuichi Ono (Nippon Foundation) and Seiichiro Takahashi (Ministry of Foreign Affairs)
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USA: Matt Bannick (Omidyar Network) and Don Graves (Office of the Vice-President, the White House)
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Australia (Observer): Rosemary Addis (Impact Investing Australia)
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Development Finance Institutions (Observer): Elizabeth Littlefield (OPIC)
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Official Report Editor: Matthew Bishop (The Economist)
More information on the Taskforce can be found at the UK Cabinet Office Website, here:
https://www.gov.uk/government/groups/social-impact-investment-taskforce
Sir Ronald Cohen is Chairman of the Social Impact Investment Taskforce established under the UK’s presidency of the G8 and
of The Portland Trust. He is a co-founder director of Social Finance UK (2007-11), Social Finance USA, and Social Finance Israel,
and of Big Society Capital. He co-founded and was Executive Chairman of Apax Partners Worldwide LLP (1972-2005). He was a
founder director and Chairman of the British Venture Capital Association and a founder director of the European Venture
Capital Association.