Report of the


Established by the UK Presidency of the G8

Impact Investment: The Invisible Heart of Markets

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"The world is on the brink of a revolution in how we solve society’s toughest problems. The force driving this revolution is “impact investing”, which harnesses entrepreneurship, innovation and capital to power social progress. This report, Impact Investing: The Invisible Heart of Markets – Harnessing the power of entrepreneurship, innovation and capital for public good, examines what is needed to catalyse the growth of a global market for impact investment. It makes recommendations that can be implemented across Taskforce countries and beyond to deliver better social outcomes and improve millions of lives across the world.

The crash of 2008 highlighted the need for a renewed effort to ensure that finance helps build a healthy society rather than endanger it. This requires a paradigm shift in capital market thinking, from two-dimensions to three. By bringing a third dimension, impact, to the traditional capital market priorities of risk and return, impact investing has the potential to transform our ability to build a better society for all."

It is urgent that governments throughout the world commit themselves to developing an international framework capable of promoting a market of high impact investments and thus to combating an economy which excludes and discards.

Pope Francis

I want to use our G8 presidency to push this agenda forward. We will work with other G8 nations to grow the social investment market and increase investment, allowing the best social innovations to spread and help tackle our shared social and economic challenges.

David Cameron Prime Minister, UK at the World Economic Forum, Davos 2013

This is ground zero of a big deal

Lawrence Summers - After investing in one of the US’s first social impact bonds, May 2014

This is a compelling and comprehensive report. It not only demonstrates the UK's leadership in the crucially important issue of social investment, but it articulates what still needs to be done to unleash new funds. This report sets out a clear plan of action for governments and markets and I look forward to implementing many of its proposals.

Chancellor of the Exchequer the Rt Hon George Osborne

Ronald Cohen has pioneered the new thinking around social impact investment. Arts and culture are perfect examples of socially beneficial activities which deliver public good. It’s exciting that we’re now creating fresh models for investment in this. Hurrah for this report!

Sir Peter Bazalgette, Chair, Arts Council England

Capitalism needs to find its invisible heart if we are to build a prosperous and more sustainable world. This G8 report offers a wonderful synthesis of what we have achieved so far and illuminates the path forward to better align market mechanisms with positive impact.

Filipe Santos, Associate Professor of Entrepreneurship