The following report, which summarises the conclusions reached by theG7 Impact Taskforce (ITF), shows how private capital can be deployed to facilitate and support sustainable growth and development globally. It also demonstrates the imperative for urgent actions, as well as makes practical recommendations for effective and timely actions on the part of stakeholders such as governments, private sectors, capital markets, regulators, civil societies organisations etc. How can the Nigerian National Advisory Board on Impact Investing (NABII) proactively promote its agenda to deliver sustainable growth and development in the impact investing ecosystem in Nigeria?
Established in July 2021, the Impact Taskforce (ITF) aims to promote sustainable and impact-driven economies and societies worldwide by addressing the following twin questions (or challenges):
– Towards these ends, the ITF decided on two specific themes (or Workstreams) representing key enablers in actualising scale: the first is ‘TRANSPARENCY, INTEGRITY AND HARMONISATION FOR IMPACT, which entails addressing the issues of impact transparency, global harmonisation of standards, and ways of ensuring the integrity of data, analysis, and governance. The second stream, ‘INSTRUMENTS AND POLICIES FOR FINANCING THE SDGS AND A JUST TRANSITION’ entails putting in place mechanisms for aligning various investment vehicles across asset classes to facilitate a seamless transition to a future that is both equitable and sustainable in the long term.
The Report recommended the following pathways to bring about this paradigm shift?:
Given the critical importance of the second pathway, in particular, the ITF makes the following six observations:
Given the above, the report proposes a host of short and medium-term recommendations for action by governments, capital market regulators, investors, public and private enterprises, as well as trendsetters and non-governmental organisations (NGOs) to ensure that the potential contribution of public and private-sector investors to achieving a Just Transition is fully realised.
What are Instruments and Policies for Financing the SDGs and a Just Transition?
The work of the ITF is underpinned by the understanding that the achievement of global priorities such as the SDGs and delivering on an inclusive recovery from the Covid-19 pandemic will require increased cooperation and innovative forms of partnerships between governments, the private sector and civil society. Hence, the Report explored this imperative within the context of supporting the development of specific instruments and policies for financing the SDGs and a Just Transition. Aside from stressing the need to harness the power of financial markets for the public good, the Report also stressed the necessity of a holistic approach to a Just Transition that addresses the socio-economic impact of climate change on people, especially women. To accomplish this, the ITF recommends:
G7 Report: Urgent actions for the Nigerian National Advisory Board on Impact Investing and the Private Sector players
The recommendations of the G7 Taskforce present opportunities that the Nigerian NABII in collaboration with key private sector players to strengthen the impact investing market and unlock the flow of both domestic and international capital. Specific actions will require in-depth analysis of the current socio-economic state of Nigeria and approach the recommendations from a contextual and research-based standpoint.
To this end, an implementation plan in line with the G7 Recommendations in a manner that embraces the two priority areas highlighted in the Report, namely: Transparency, Integrity, and Harmonisation for Impact; and Instruments and Policies for Financing the SDGs and a Just Transition, following the current realities and peculiar circumstances of Nigeria.
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