Three key barriers must be overcome if Scotland is to unlock the investment needed to reach net zero by 2045.
A research paper produced by the Scottish National Investment Bank in partnership with The Good Economy, has set out a roadmap that will help drive the economy towards zero carbon emissions, and foster the best outcomes for our communities.
‘Unlocking the potential of impact investing in Scotland’ published today, highlights the next steps needed if billions of pounds of essential funding are to be unleashed.
Impact investments are made with the intention to generate positive, measurable social and environmental outcomes.
The paper details three key strategic steps needed. These are:
- Broadening the scope of investment to larger businesses looking to upscale
- Streamlining the investment process to save time and money
- Expanding the ecosystem around impact investing to increase support and understanding
Willie Watt, Chair of the Scottish National Investment Bank said: “Scotland is at a critical juncture for meeting its climate commitments and realise the bold ambition to reduce emissions by 75% by 2030 and reach net zero by 2045.
“The cost-of-living crisis is deepening place-based inequalities by the day. The time for action and investment is now.
“The Bank is keen to play a central role in bringing together and broadening the impact investment community in Scotland.
“Through this, we hope to grow and strengthen the network of individuals and organisations that are working together to deploy capital at scale and with impact, leveraging finance to address some of the major challenges facing Scotland.”
The research paper details the need for Scotland’s impact investing ecosystem to be strengthened and scaled up.
At present, the market in Scotland is characterised by relatively small deal sizes and a high cost and time complexity of finding and making deals.
There is not yet a specific impact investing identity or community in Scotland – or a set of supporting services and actors to help those interested in adopting an authentic impact approach.
It is estimated the current value of impact investing market is £4.3billion.
Sarah Forster, Co-Founder and CEO The Good Economy said: “Scotland is already a leading centre of investment activity with a large investment management industry with a track record in responsible investing.
“We hope the report is the start of a conversation on how Scotland can continue to play a collaborative role in building an impact investing ecosystem that works for all.”