Business and Development Sector Reports

Invisible Heart of Markets : Report on Impact Investing

A report titled ” The Invisible Heart of Markets: How Impact Investing is Harnessing Innovation and Capital for Public Good” has been released by The Social Impact Taskforce, which was constituted by the governments of the G8 in June 2013.

The report released last week outlines various recommendations that could potentially unleash billions of dollars of private sector investment to solve social problems.

The report lays out eight high-level recommendations which are :-

  1. Set measurable impact objectives and track their achievement.
  2. Investors to consider three dimensions: risk, return and impact.
  3. Clarify fiduciary responsibilities of trustees: to allow trustees to consider social as well as financial return on their investments.
  4. Pay-for-success commissioning: governments should consider streamlining pay-for-success arrangements such as social impact bonds and adapting national ecosystems to support impact investment.
  5. Consider setting up an impact investment wholesaler funded with unclaimed assets to drive development of the impact investment sector.
  6. Boost social sector organizational capacity: governments and foundations to consider establishing capacity-building grants programs.
  7. Give Profit-with-Purpose businesses the ability to lock-in mission: governments to provide appropriate legal forms or provisions for entrepreneurs and investors who wish to secure social mission into the future.
  8. Support impact investment’s role in international development: governments to consider providing their development finance institutions with flexibility to increase impact investment efforts. Explore creation of an Impact Finance Facility to help attract early-stage capital, and a DIB Social Outcomes Fund to pay for successful development impact bonds.

heart of markets

The Invisible Heart of Markets

Download full report at the link below :

impact-investment-report-g20.pdf

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