In 2011, when PCV and IRI launched the IIPC, we aimed to bring together policymakers and practitioners committed to policy innovation that promotes investing for social and environmental impact. It was a nascent conversation, and we’re grateful to all of you for being early promoters and visionaries. From the very first IIPC conference in Brazil to the launch of several significant publications, which continue to be cited as key resources on any conversation on impact investing and policy, we have benefitted from your ongoing support.
What is the IIPC? The IIPC seeks to clarify the role of public policy in impact investing through research and collaboration by helping investors, public officials, advocates, researchers and related communities better identify and support policies that lead to more robust and effective capital markets with intentional social and environmental benefits.
Impact investors direct capital to companies, organizations, and funds with the intention of generating measurable social and environmental impacts alongside a financial return. Public policy plays an important role in supporting impact investing, for example by directing large institutions to invest in target areas (e.g. Priority Sector Lending regulations in India), byproviding tax credits and other subsidies for investments with social or environmental benefits (e.g. Green Funds Scheme in the Netherlands), and by creating investment opportunities by providing special recognition for special purpose enterprises and financial intermediaries (e.g. Solidarity Enterprises in Brazil) or procurement (e.g. Broad-Based Black Economic
Empowerment Act in South Africa).
In 2011 alone, over $2 billion was made available specifically for impact investment by governments in the UK, US, Europe and Australia, according to recent research from JP Morgan. The public sector is also responsible for innovations in the field including the development of social impact bonds.
The IIPC includes over 30 participating organizations in 15 countries actively researching impact investing policies and advising governments directly, in addition to policymakers and investors at the field’s forefront. The work of the IIPC will include an online forum for sharing insights and evidence, international in-person meetings, and sub-grants and fellowships for member organizations.