The U.K. government wants pension and savings products' investors to benefit societal initiatives, it said Monday by launching the Impact Investing Institute.
In efforts to combine financial returns with a social purpose to help improve citizens' lives, the government wants to encourage investments in organizations that provide housing to homeless people, renewable energy companies or businesses committed to delivering sustainable employment.
"More people than ever before want their savings and investments to make a real difference to people's lives and the planet, while still generating a return. We want to make it as simple as possible for investors to put money into the issues they care most about. The (institute) will look at more ways for people to do this, whether you're an asset manager or pension fund, or an ordinary saver who wants to invest their money to change lives for the better," U.K. Culture Secretary Jeremy Wright said in a news release.
"The institute will play a significant role in ensuring the U.K. continues to stay at the forefront of innovation in impact investing, enabling U.K. savers to invest in line with their values and have increased ownership over the social outcomes that their money generates," said former CEO and managing director of Allianz Global Investors, Elisabeth Corley, who is chair of the Impact Investing Institute's management board.
Led by Sir Harvey McGrath and Ms. Corley, the institute plans to search for a CEO.
