The government has reaffirmed its commitment to bring social impact investment into the mainstream in a response to an industry-led report.
In November, an advisory group led by Elizabeth Corley, vice chair of Allianz Global Investors, produced a report with 53 recommendations for government, industry and umbrella organisations to help grow the social impact investing market.
Today, the government has issued its response, welcoming the report and has committed to work with the investment and savings industry to support the launch of further social impact investment funds.
It pledges to “work closely with regulators and statutory bodies to ensure that […] social impact is considered in regulatory frameworks and understanding”.
The government says it has “an aspiration that pension schemes could, if they chose to, target a minimum percentage allocation towards investments that have an explicit social or environmental purpose”.
It says local government secretary James Brokenshire is considering how social impact investment might help tackle homelessness and provide housing for vulnerable people.
The government also said there is a need to promote the social and environmental responsibility of UK businesses.
It has already committed to reviewing the social investment tax relief in 2019.
'Brimming with potential'
Tracey Crouch, civil society minister, said: “By utilising the wealth of experience within the financial services industry, we can expand social impact investing to help build a society that works for everyone.
“Even if you have a small amount of savings, or a pension pot, you should be able to invest in the issues you care about.
“I want to thank Elizabeth Corley and the Advisory Group. I look forward to continuing to work with the wider industry to expand social impact investment.”
John Glen, economic secretary to the treasury, said: “Investing can and should be a force for good, and it’s vital that industry and government work together to make it easy for people to invest in the causes they care about.
“Social impact investing is brimming with potential and we are encouraging firms to develop products to meet the rising demand, while championing the industry’s potential to make a real difference to people’s lives.”
The government will provide a progress update in winter 2018.