Three ways the Social Impact Investing Advisory group recommendations could be harnessed to increase equality impact investing

By EIIP Co-Director Ceri Goddard

The recent report from the Social Impact Investing Advisory Group (SIIAG) provides a practical roadmap for action centred around three key pillars: organising to mobilise and support the impact economy; embedding the mobilisation mindset; and unlocking resources and participation at scale.

Each of these pillars represent a key opportunity to accelerate existing, and generate new equality impact investing and philanthropy, if they are grasped.

Image: Joachim Schnürle

Organising

Two of the SIIAG key recommendations, to ‘establish sustained and visible leadership at ministerial and senior civil service levels’ and ’create an Office for the Impact Economy‘ have been taken forward by government. By championing equality impact investing (EII) and promoting cross-department engagement with EII, the new minister could ensure it is meaningfully integrated in the growth of the wider impact economy. It would also firmly establish the UK as the global leader of a field that originated and was pioneered here.

With its remit to embed impact economy partnership across government and act as the ‘front door’ for external stakeholders the new Office also has key opportunity to establish and accelerate equality impact as central to new partnerships and ways of working. In both cases, early commitments and actions are key. Including these in the ground floor of the new minister’s agenda, and the Office for the Impact Economy strategy and organising structure, will create a powerful new platform for the EII movement to generate more and more effective equality impact investing.

Mobilising

The SIIAG’s recommendation to ’embed a match first / leverage approach as a core principle of policy design‘ chimes powerfully with EIIP and the wider EII movement. Research and insight indicated that a key barrier for many investors and philanthropists who are actively seeking to support equality impact is a lack of appropriate vehicles. Both the SIIAG’s recommendations: to make changes to strategic policy and delivery frameworks with accompanying enabling infrastructure; and to accelerate flagship projects that demonstrate a match first model in action, could be a means to address this.

Equality impact could and should be integrated into the former. Integrating equality impact strategies and principles into the design stage of flagship projects, including the new Better Futures Fund, and/or creating new equality impact focused projects, could open up new flows of investing and philanthropy.

Unlocking

To unlock untapped capital and corporate resources, the SIIAG recommends several actions including integrating philanthropy and impact investment into wealth advice. With a major transfer of wealth afoot including to new generations, progressive philanthropy circles and women – all of whom, data indicates, are seeking more progressive impact vehicles – integrating EII could reap dividends.

Underpinning these three ideas is one central one: now is the moment to harness and support the growing EII movement to centre equality and social justice in the future impact economy.