A new institute is being set up to make it easier for people to invest for positive social impact, the Department for Digital, Culture, Media & Sport announced today.
The Impact Investing Institute, which is recruiting for a chief executive, will collaborate with social enterprises, the finance sector and businesses to expand the UK impact investing market.
It will encourage ordinary savers to choose ISAs, pensions and savings products that benefit the issues they care about.
The chairs of these two organisations – Sir Harvey McGrath, who is also chair of Big Society Capital, and Elizabeth Corley, a former chief executive of Allianz Global Investors – are leading the initiative.
Further details, such as how the institute will be funded and its legal form, have yet to be revealed.
An institute spokeswoman said it was in the early stages of being set up.
She added: "The institute has broad backing across the financial services and social sectors and will be supported by private firms and foundations alongside the DCMS, the Department for International Development and the City of London Corporation. Budget contributions will be confirmed in due course.
"It will be a lean organisation with a small staff, who will support working groups of experts working in a pro-bono capacity to drive focus areas and particular projects."
The UK National Advisory Board on Impact Investing, which consists of senior figures from philanthropy, the finance sector and the wider business world, makes recommendations to government on ways to strengthen the UK investment sector.
The Implementation Taskforce, which was set up last year by Theresa May, the Prime Minister, aims to speed up innovation in the financial services industry to provide products that enable savers and investors to make a social impact.
McGrath, who will chair the institute's advisory council, said the initiative "will create a group with impressive convening power and world-class knowledge of both mainstream and social investment".
Corley, who will chair the institute’s management board, said the institute "will play a significant role in ensuring the UK continues to stay at the forefront of innovation in impact investing, enabling UK savers to invest in line with their values".
Culture secretary Jeremy Wright said: "We want to make it as simple as possible for investors to put money into the issues they care most about. The Impact Investing Institute will look at more ways for people to do this."