GIIN Investor Forum demonstrates momentum behind social investing

 

The event is the first ever conference held by the Global Impact Investment Network (GIIN) and the City of London Corporation. The event will bring together a diverse range of institutions and organisations engaging in different ways and at different levels with impact investment.

 

Linking the city and a global network of impact investors switches a narrow focus on social organisations to carry the burden of social imperatives, to one that sees a vital role for diverse organisations and business models to have a social impact, explained Mark Boleat, chairman of the City of London Corporation, ahead of the event's launch.

 

“To have a truly transformational impact on our society, we must look beyond charities and social organisations; we must work with all shapes, sizes and business models," he said.

 

With all new models and innovative practice there is a danger of feeding unwarranted hype. But among the forum's speakers and delegates there is a genuine sense of excitement around the potential to change in the way investment has traditionally been regarded and used. 

 

“A couple of years ago, putting 300 investors in a room to discuss social investment would have been a tall order. Today’s event is evidence of the significant momentum behind the idea of social investing,” said Nick O’Donohoe, chief executive of Big Society Capital.

 

Zooming in on the products in the marketplace, Luke Fletcher, partner at Bates Wells Braithwaite, said: “The most exciting thing is seeing early signs of success, for example, data showing reduced reoffending in the Peterborough social impact bond and data showing better educational outcomes for social impact bonds working with young people.”

 

With continued support of social sector organisations at the one end and the increased activity of newcomers dipping their toe into social investment at the other, “we’re close to bookending the problem now”, said Katie Hill, social investment advisor at the City of London Corporation.

 

But stubborn challenges remain.

 

“I would like to see debate about innovation and about how some of the barriers can be removed from the wealth of products on offer to individual investors,” said James Vaccaro, head of market and corporate development at Triodos Bank.

 

“You’ve got products like the Greenwich Leisure bond out at the moment, and these sorts of bonds are popular, but for us it’s about how you can get more conscious understanding of what is going ."

 

There is the sense that the biggest challenge for the future of social investment faces is one of cultural change.

 

“It’s about a radical cultural change for the whole of how investment is done, and that’s the interesting discussion that I think is taking place,” said Vacarro.

 

Going further, Hill said, “There’s a cultural challenge and a communication challenge. If we can ensure people understand what we’re trying to do and why it’s so important, then we might help trigger the cultural change.”

 

Today delegates from across the spectrum will be looking to see how things are done in different corners of the world, and seeking to guage how many and to what extent diverse asset owners from large charitable foundations to pension fund CIOs are engaging with impact investment.