The UK's offer Leading expertise built over two decades of practice in impact investingA growing sector with strong UK government backing and a supportive regulatory environmentA global financial centre with a large pool of investors and capitalWorld-class education and research institutions Specialist products and services for a growing market The UK is a one-stop-shop for sustainable finance and prioritising the social element of sustainability makes us stand out. The UK has a long history of impact investing – investing with the intention to generate positive, measurable social as well as environmental impact alongside a financial return. This history spans over two decades of practice. The UK launched the first ever social impact bond at scale, which has been globally replicated. The UK impact investment market is worth an estimated £76.8 billion, and this is set to increase. Since the last market sizing study in 2020, this represents a 10.1% compound annual growth rate over this period, outpacing other asset management sectors. The UK impact investing market accounts for between 8% and 9% of the global market for impact investment. Drawing on its world-class expertise, the UK offers valuable knowledge and a wide range of specialist funds, products and services to support a growing impact investing market to both domestic and international investors. The UK government has played a critical role in supporting the social impact investment market since the early 2000s, from setting up Better Society Capital to supporting the creation of the Impact Investing Institute. More recently, the Financial Conduct Authority published their brand-new Sustainability Disclosure Requirements, including the UK’s first regulated impact investing label. Social enterprises (for-purpose businesses) are among key recipients of impact investment. The UK has also nurtured a robust social enterprise sector and developed the capacity of these businesses to receive investment. This has been in the form of legislation to define a social enterprise, financial support and the establishment of capacity builders for the sector such as Access Foundation. As a global financial hub, London provides a large pool of investors and capital. Social investors, private equity and venture capital firms and foundations are some of the leading impact investors in the market, while institutional investors (such as pension funds and banks) have been identified as primary drivers of future growth. Over 20% of the 250 social impact bonds launched in the world have been launched in the UK Businesses with a product or service delivering a social or environmental outcome, despite not being mission-driven businesses, also receive impact investment. There are significant investment opportunities in impactful projects and activities in the UK, and this is also set to grow. £76.8bn the estimated value of the UK impact investment market £1.2tn the value of the global impact investment market 90% the share of impact investors reporting that financial returns from impact investing were in line with/exceeded their investment targets 131,000 social enterprises in the UK, generating £78bn in revenue and a workforce of 2.3 million. How the City of London Corporation supports impact investing The City of London aims to support the UK’s impact investing sector by mobilising additional private capital for social activities, projects and outcomes: Supporting the Impact Investing Institute to share best practice and grow the market Developing high quality thought leadership to move the agenda forward Raising awareness and ambition of the financial sector to invest in social impact through a range of events and forums including the Net Zero Delivery Summit, Finance for Impact Summit, COP, UN Global Compact, and City of London Corporation events Building strategic alliances to grow and amplify the impact economy in the UK Advocating for policy change to mobilise more private capital for social outcomes Find out more about our work in this area, including our Theory of Change, here. Watch highlights The Finance for Impact Summit The Finance for Impact Summit Finance for Impact Industry-led recommendations to advance finance for social impact Industry-led recommendations to advance finance for social impact Research Report Case study catalogue 2023 How Financial Services are helping to deliver a Just Transition How Financial Services are helping to deliver a Just Transition How you can get involved We have been delivering a series of workshops and events in 2024, to highlight the role of venture capital (VC) and private equity (PE) in impact finance across a range of themes: The role of VC and PE in accelerating a just transition in emerging markets Place based investing: economic growth in regions outside of London and the South East The role of the VC and PE sector in preventative health Two events on how to strengthen the relationship between Limited Partners (LPs) and General Partners (GPs) when delivering impact investing If you’re interested in attending an event or discussing impact finance and new ways in which the City of London can support this growing sector, please contact us at: sustainablefinance@cityoflondon.gov.uk Stay in touch Sign up to our mailing list to make sure you're the first to hear about news, reports, and events relating to financial and professional services from the City of London Corporation. 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