Private capital, public good: Leveraging impact investing to support a just and equitable recovery
This report focuses on leveraging impact investing to support a just and equitable economic recovery in the United States. It provides a set of recommendations for policymakers based on the experience of impact investors, with an emphasis on promoting investor impact transparency and incentivising private capital into investments with positive impact.
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OVERVIEW
This report explores how impact investing can contribute to a just and inclusive economic recovery in the United States. It provides a set of recommendations that policymakers can adopt to incentivise private sector investment and promote investor impact transparency.
Transform community investing to confront inequality
The report recommends that policymakers take measures to fortify and scale community development financial institutions (CDFIs) and minority depository institutions (MDIs) while also exploring new models to close gaps that have left underserved communities underinvested. It also suggests modernising the purpose of the Community Reinvestment Act to address current financial systems.
Advance stakeholder capitalism to restore American economic leadership
Policymakers should clarify the duties of corporations in relation to environmental, social, and governance (ESG) issues by imposing consistent disclosure requirements. Additionally, the report recommends providing clarity to investors, including retirement plans and charitable endowments, about their duties as fiduciaries and their ability to manage impact factors in the long term.
Leverage the tools and lessons of development finance for sustainable economic recovery
To foster an economy that provides security and quality jobs for all, the report recommends policymakers deploy development finance tools to invest in American infrastructure and industry. The strategy should prioritise sustainability and equity, particularly in physical infrastructure and critical gaps, for both small businesses and strategic industries.
In summary, this report suggests that promoting investor impact transparency and incentivising private investment to support communities that have been historically underinvested can bolster economic recovery. Additionally, consistent disclosure standards for corporations regarding ESG issues and clarification on the duties of investors could help restore American economic leadership. Finally, deploying development finance tools can also play a role in creating an inclusive and sustainable economic recovery.
