Supporting a world-leading impact finance centre

To create a more just, fairer and inclusive economy for our communities, it is vital the 'social' element of sustainability is also developed and prioritised.

That’s why our work aims to ensure the UK remains a world-leading hub for impact investment.

The City of London Corporation's Impact Finance Theory of Change

The Theory of Change below illustrates how our work aims to  grow the world-leading UK impact investment market and take advantage of significant opportunities in this sector.

What policy areas and initiatives does the City of London support?

Scaling impact capital in venture capital and private equity 

• In 2024, the City of London is working with the Impact Investing Institute to position London and the UK as the leading global impact investment hub for private equity and venture capital, supporting the high-growth business models of the coming decade. This initiative is being delivered in collaboration with BVCA and Better Society Capital and supported by Herbert Smith Freehills.

Helping industry to be more ambitious in integrating a social lens into practice

• The Finance for Impact Summit in 2022 brought together global leaders of finance, business, governments, and other institutions to discuss how to scale capital deployed to deliver positive and measurable social outcomes. The aim was to elevate the “S” alongside the “E” in ESG.
• We highlighted the need for more private sector capital to deliver sustainable development and climate goals at the Net Zero Delivery summits and in 2024 delivered a panel with the World Economic Forum on mobilising private capital for emerging markets.
• We have also partnered with the UN Global Compact to support the global impact economy and progress sustainability of business, people and the planet.

Supporting a Just Transition with the Impact Investing Institute

• We launched a catalogue of case studies to showcase action in the financial services industry for a Just Transition, and highlight the ways in which a ‘just’ lens can be incorporated into practice.
• The City of London then supported the Just Transition Finance Challenge, a coalition of businesses committing to investing and ensuring that the investment for a transition to Net Zero is inclusive and socially beneficial. In 2023, the Just Transition criteria was launched by the Impact Investing Institute to further build this challenge out for asset managers and owners.

Showcasing how impact investing can help local communities

We have been supporting the Impact Investing Institute’s place based investing programme as well as delivering roundtables to encourage more investment outside of London and across the UK.

If you need further information on impact investment and the City of London Corporation’s role in growing the sector, please email sustainablefinance@cityoflondon.gov.uk.