Equality Impact Investing

'A key challenge identified by a number of [investee] interviewees was the constantly shifting landscape in relation to the constant ‘layering’ of additional social impact reporting requirements, which were often nebulous and hard to measure objectively.' Explore how power imbalance can inadvertently be reproduced by investee reporting obligations as well as examples of how support from investors has countered this - in our EDT Investee Perceptions of Power Dynamics in Legal Processes report. ?? https://buff.ly/3WmlbA0 #equalityimpact

Here's an impact investee on the importance of investors addressing power imbalances with investees in legal processes at the outset: 'It’s about having an explicit conversation at the beginning. What are your [the investor’s] power interests here? Are you prepared to recognise the potential imbalance that can be played out through your behaviour? And what is your view about empowering the organisations you’re lending money to?' Read more suggestions about how impact investing can adapt its approach to legal processes in our Equalising Deal Terms project with @Bates-Wells here?? https://buff.ly/3WmlbA0

We were excited to see the launch of the Taskforce on Inequality and Social-related Financial Disclosures (TISFD) last month to tackle the current 'historic highs in income and wealth inequality' - head-on and at scale. In development is a single disclosure framework bringing together social/inequality impacts on people with dependencies, risks and opportunities for market actors - to be embedded in 'voluntary and mandatory standards and laws'

How might power imbalances in legal processes be addressed in impact investing? Here’s one ideas from an investee: 'Ultimately if you’re managing a portfolio of social investments, you have some which have potential but are risky. You manage risk by actively communicating with your portfolio and having strong relationships. [Alternatively, you could have] 10 aggressive legal documents, individually seemingly managing risk. But because of the costs and lack of trust (and relationship), that won’t help you much. You won’t get the social returns you were aiming for but you might get money back.' Read more suggestions on how #impactinvesting can adapt its approach to legal processes in our Equalising Deal Terms project with @Bates-Wells here ?? https://buff.ly/3WmlbA0

Brilliant initiative - looking forward to seeing some equality transformative ventures apply to become your 3rd cohort! #equalityimpact

We are currently consulting on our next three-year Strategic Plan. The consultation is an opportunity for individuals and organisations to share their views on our future direction. We have used data and evidence to identify three areas we can make a difference in. These areas are: - work - participation and good relations - justice and the balance of rights We aim to use our regulatory powers to support long-term change and improvements to equality and human rights issues in these areas. We need your feedback to understand how we can achieve the greatest impact and which issues we should prioritise. ? The consultation closes on 3 October 2024. Have your say here: https://orlo.uk/Yk8Nu

‘The EDT Principles are important because they highlight the often-unspoken power dynamics in the legal process which prevent equitable relationships and outcomes between impact investors and investees’ - @Kevin Osborne @CreateEquity @MeWe360 Read more about the Equalising Deal Terms Principles https://buff.ly/494XBKQ #equalityimpact #socialchange

You might be interested in this short and timely read in our EII knowledge hub. @equalitytrust Structural Inequalities Alliance helps us recognise structural inequality - https://buff.ly/3AdwFNg - offers some causes and effects and principles to mitigate it. And for those looking for everyday practical investment strategies that social and impact investors can use to tackle this structural inequality, a reminder of our EII toolkit if you've not dug into it already. The 5 EII investment strategies are: + Capital to marginalised entrepreneurs + Target ventures with good equality and diversity practice + Target inequality mitigating organisations + Target equality transformative organisations + Improve investors own make up and practice Loads of detail on each together with examples of investors applying this in practice are here - https://buff.ly/3rO4UEK

Are you using investment to tackle inequality? Are you working on an equality investing tool that could benefit other funders? Whether it’s a practice, process, research or data, there may be many others that could learn from it. Share it on our Knowledge Hub. Nearly any format is fine – web links, case studies, reports, policy documents, application forms, comms strategies or assessment criteria. Don’t delay - upload it here ?????? https://buff.ly/45KoQKW ?? Explore over 80 EII Knowledge Hub resources others have shared here - https://buff.ly/3lIYC6s #equalityimpact #impinv

How are power imbalances reflected in investment terms and legal processes in impact investing? “Security and charges over buildings[... these are] very often wielded disproportionately which means organisations cannot use that to support wider finance needs down the line” - change-making organisation with investee experience. Learn more in our EDT report on Investee Perceptions of Power Dynamics in Legal Processes ?? https://buff.ly/3WmlbA0 #socialchange #social investment #equalityimpact