The Impact World this Week: 5 September 2024

Global: Sustainability reporting standards are unfit for the Global South – mostly because standard setters aren’t listening to what they need, according to a report published by GSG Impact following consultations with more than 500 stakeholders, including listed companies, micro, small and medium enterprises, financial regulators, stock exchanges, investors and researchers among others. Impact Transparency from the Ground Up notes that small entities that are part of big companies’ supply chains will be under pressure to report on their impact, due to well-intentioned pushes for greater corporate impact transparency. But in many Global South markets, many small enterprises “even lack basic resources to perform the simplest accounting practices”, let alone a sustainability audit. Global standards setters such as the ISSB and and the European Union should more proactively involve Global South stakeholders in the design of sustainability standards if they are to be effective as a true global reference, the report concludes.

Global: Impact investing in infrastructure is growing but still neglects emerging markets, the latest Phenix Capital database report reveals. As investment in infrastructure has slowed down worldwide, impact investors are bucking the trend with a growing number of funds focused on infrastructure projects with a positive social or environmental impact coming to market (currently 14, 75% more than last year). Since 2015, the number of impact funds focused on infrastructure has grown by more than 200%, reaching 357, with €150bn committed. But while the need for better infrastructure is biggest in the Global South, the report shows that only a fifth of infrastructure impact funds are targeting emerging markets, with 72% focusing on developed economies only.

Scotland: Scotland should triple the number of social enterprises in the country to create a stronger and fairer economy, a new report commissioned by the Scottish Government recommends. The Independent Review of Inclusive and Democratic Business Models (IDBMs) in Scotland report, published on Tuesday, also includes the recommendation of a new statutory duty on key national bodies including the Scottish Government, Enterprise Agencies and the Scottish National Investment Bank to assist the growth of IDBMs.

UK: A new £1m support programme will support 31 Black and Ethnic Minoritised-led social enterprises and charities through grants and blended capital. The Cost of Living Support Programme run by Pathway Fund, which supports social enterprises led by people of colour to access social investment, has been launched in response to Do It Now Now’s Cost of Living Report, which found 76% of BAME-led social enterprises and charities believe they had been refused finance because of their race or ethnicity during the cost of living crisis.

UK: Power to Change will carry the voice of community business in Westminster, as it says it has “evolved” to a “think-do tank”. Since it was established in 2015, the organisation has provided funding and partnership support to community businesses. It will now also aim to use its evidence base to inform and influence policy. The new direction follows the government’s announcement it would progress community right to buy, as campaigned for by Power to Change.

UK: Feeling creative? Social Value UK is rebranding as The Institute for Social Value and it is inviting contributions to the development of its new logo, vision, mission, values, brand colours, tone of voice, and more. With their design agency, me&you, The Institute for Social Value aims to incorporate diverse perspectives into the rebranding process.

Movers and Shakers

• Equality, justice and social equity campaigner Lord Michael Hastings CBE has been appointed chair of Pathway Fund. Hastings’ career includes being a commissioner with the UK government’s Commission for Racial Equality and roles at UNICEF UK, the BBC and KPMG. 
• Responsible Finance, which represents the UK's £287m community development finance institution sector, has appointed Chris Sood-Nicholls of Lloyds Banking Group as a non-executive director. Sood-Nicholls is managing director, regional development at Lloyds Banking Group and a long-term advocate for impact lending and financial inclusion.
• One of the largest independent grant-making organisations in the UK, the Paul Hamlyn Foundation, has appointed Halima Khan as their new chief executive. Khan was an executive director at Nesta, the UK's innovation foundation, for nine years, and has subsequently held a position as a member of the England Committee at The National Lottery Community Fund. She has also had significant responsibilities in national, regional and local government.
• Dave Zellner, former chief investment officer of the United Methodist Church’s Wespath Benefits and Investments, has been appointed as FaithInvest’s new executive chair. Zellner worked at Wespath Benefits and Investments for 27 years until his retirement in August 2024 and has been FaithInvest’s Chair of Trustees since 2019.