There is still no ‘social impact’ sector. That’s partly because sector classifications tend to be based more on the nature of the underlying assets – residential or healthcare property and so on – than the motivations behind them.
It’s also because many of these companies were not launched as ‘impact’ funds. They marketed themselves mainly on their ability to generate financial returns, chiefly in the form of attractive yields.
Now they are talking more about how they touch people’s lives, whether that is by providing care homes or supported living, or funding social enterprises to boost people’s life chances. And they are serious about demonstrating this impact through measurement.
Civitas Social Housing, for example, commissions bi-annual social impact reports prepared by The Good Economy Partnership, a social advisory firm. The latest of these noted 53% of residents in Civitas-owned homes reported an improvement in their independence versus their previous accommodation, with 2% noting a negative change.
Read the full comment in ESG Clarity‘s July digital magazine here.