Do business but do good, that’s the key to impact investing…

‘Impact Investing Not Just Investing With Impact’
ftadviser.com

The chairman of Big Society Capital and The Portland Trust, told delegates at a special event held at the FT Offices yesterday that sustainable and ethical investment was not just a trend but a “game changer”.

At the event, marking National Ethical Investing Week, Sir Ronald said: “I cannot stress enough how important it is to tackle social issues.

“Goverment have been throwing their hands up in despair as no matter how much money governments pour into social enterprises, it has not seemed to make a difference. The welfare state cannot support such schemes, nor can the charities sector.

“However, investing in social impact bonds is becoming a way to unlock the balance sheets of pension funds, charitable foundations, insurance companies, high net worth individuals and philanthropic foundations alike.

“By connecting a social performance – such as reducing the likelihood of young people re-offending and entering the prison system a second time – to a financial return, we have given social enterprises access to the markets.

“Likewise we have given investors with deep pockets something that provides them with profits, with a purpose.”