This month I was honored to serve as a delegate to the Global Social Impact Investing Steering Group’s (GSG) Impact Summit (Summit) in Chicago, joining over 550 financial institutions, philanthropies and intermediaries from 43 countries. The Summit was led by the US Impact Investing Alliance (Alliance), newly formed organization dedicated to building the impact investing ecosystem in the United States. Confluence serves as an inaugural member of the Alliance’s Industry Advisory Council, composed of our peer networks and collaborators, all working tirelessly to build the industry.
The GSG was formed in 2015 as an alliance of 15 member countries and the EU, and succeeded the Social Impact Investment Taskforce established by the G8. The GSG holds an international summit every year as an opportunity to share insights and knowledge about how international stakeholders can collaborate to support the growth of the field. The 2018 GSG Summit will be held in Delhi, India.
GSG Member Countries and EU
Summit Highlights
The Summit explored a range of topics related to impact investing and how to support the growth of the field globally. Delegates engaged in industry-shifting discussions including: the importance of crafting new fund structures; progress made in various countries across the globe; the role of philanthropies in building the capacity of the industry, from entrepreneurs to investor networks.
Darren Walker, President of the Ford Foundation and Chair of the Alliance, and Fran Seegull, the Alliance's Executive Director, opened the Summit. Fran explained, “Our goal is to try and transform finance by creating transparency around social and environmental impact.” Fran's comments are viewable here.
The Alliance’s has three primary goals:
- Increase awareness about impact investing
- Fostering deployment and demand for impact capital across all asset classes globally
- Build impact investing ecosystem by partnering with policy makers and other stake holders
Yet we have a long way to go. Only 6% of the G20’s impact investing signatories were foundations. Of course, most foundations don’t participate in G20 events, focused as they should be on their grantees. However, the practice of mission-related investing among philanthropies is hindered by various forces, including a lack of urgency and political will, market timing, and ideological differences. Many of the dynamics that impair the effectiveness of grantmaking are now taking root among philanthropies in impact investing.
Darren Walker astutely observed, “If we are going to transform finance, we (philanthropy) are going to have to get uncomfortable. So if you work at a foundation, ask your president, ask your board: ‘why aren’t we using our endowment?’ Not PRIs, which are grant proxies. Hold us accountable to our mission.” Indeed Darren. Indeed.
To end on a hopeful note, Sir Ronald Cohen shared this inspiring vision: "On its way to the tipping point . . .By 2020, impact will be a core part of financial decision-making.”
For more inspiration, check out a video of his remarks here.
