Impact Taskforce calls on G7 to take urgent action to mobilise more institutional capital
Updated: Aug 26, 2022
“Investment decisions are being taken today with incomplete information. We need to transform the quality and transparency of data on impact. Our report presents an actionable pathway towards a world in which investments decisions are looked at through the triple lens of risk, return, and measured impact,” says Nick Hurd, a former UK Minister and the Chair of the Impact Taskforce (ITF).
The Impact Taskforce, the independent, industry-led taskforce supported by the G7 Presidency, has today released its recommendations aimed at financing a Just Transition to a climate-secure future for all. Actionable recommendations include:
Mandatory accounting for impact by businesses and investors to harmonised standards, recognising the central role of transparency and integrity in changing behaviour and driving investment flows.
Support for the efforts of the International Financial Reporting Standards Foundation’s International Sustainability Standards Board (IFRS-ISSB) to create a global reporting “baseline” on impact related to enterprise value.
Increasing the supply of investment vehicles suitable for institutional investors, empowering multilateral development banks and development finance institutions to be more effective in catalysing mobilisation of private investment, with particular focus on emerging economies where the funding gap is greatest.
Driving alignment across public and private actors and ensuring that more capital meaningfully contributes towards a Just Transition, by putting forward three Just Transition Elements that provide a common foundation for action to deliver a transition to Net Zero that leaves no one behind.
The Impact Taskforce, which brings together 120 leading voices from the worlds of business, investment and public policy, representing over 100 institutions across 40 countries, today published its report entitled Time to deliver: mobilising private capital at scale for people and the planet. The in-depth analysis provides actionable recommendations that answer the pressing question: “How can we accelerate the volume and effectiveness of private capital seeking to have a positive social and environmental impact?”
The report explains how societal shifts and leaps in technology now create the opportunity to mobilise private capital at scale in the search for better solutions. The Impact Taskforce’s recommendations establish the roadmap for unlocking finance to support these urgent funding requirements. The roadmap lays out actionable pathways so that institutional capital, estimated globally at $250 trillion, can work more effectively with public capital to deliver positive social and environmental benefits for people and the planet.
The report urges governments to create mandatory and harmonised disclosure standards for companies and investors. The Taskforce endorses the IFRS-ISSB work on a globally harmonised baseline on impact related to enterprise value that can allow greater transparency, efficiency, and accountability, and encourages all G7 members to do the same. Countries should urgently build on that baseline to include impact on all stakeholders.
The Impact Taskforce also recommends that larger businesses use their expertise to help guide small- and medium-sized enterprises to better disclosure in the longer term. And it calls for public-private cooperation to advance emerging work on impact valuation that might allow meaningful comparison between the impacts and profits of companies, enhancing integrity in impact accounting and disclosure processes.
To find out more about the Impact Taskforce and its recommendations.