The Prime Minister yesterday announced the launch of Panahpur investee company The Social Stock Exchange at the G8 Social Investment Forum in London. The press release is below, and the Prime Minister’s speech can be read here.
Photo shows Prime Minister David Cameron, founder Pradeep Jethi, Caroline Mason from Big Society Capital and Minister for Civil Society Nick Hurd MP.
PRIME MINISTER LAUNCHES THE SOCIAL STOCK EXCHANGE
Launch of Social Stock Exchange places UK at center of multi-billion dollar global social impact market
London – (June 6th 2013) – Prime Minister David Cameron today announced the launch of the Social Stock Exchange (SSE) a new initiative designed to connect the public financial markets with social impact investment. The SSE gives investors access to information on publicly listed businesses with strong social and environmental purpose, and guarantees full and transparent disclosure on the impact of those businesses.
The Prime Minister has highlighted in a speech ahead of the G8 summit that the SSE demonstrates that the UK is at the heart of financial innovation and social investment. The global market for social impact investment is estimated to be worth $9 billion and expected to grow to between $200 and $650 billion in the next decade.
Today also sees the announcement of the first member companies to be admitted to the SSE. They are high growth businesses in markets such as social and affordable housing, clean-tech, waste, water, recycling, renewable energy, sustainable transport, health, education and culture. They include Ashley House plc, V22 plc, Straight plc, Scope, Places for People, ITM Power plc, ValiRx plc, Good Energy Group plc, Primary Health Properties plc, Halosource plc and Accsys Technologies plc.
A further 12 companies are currently pending admission, following the SSE’s rigorous three stage admissions process, which includes the requirement to be admitted to a regulated Stock Exchange (hence the role of London Stock Exchange Group in supporting this initiative), the production of an Impact Report and assessment by the SSE’s Admissions Panel, formed of leading social impact investment experts.
The SSE is supported by a number of high profile organisations including London Stock Exchange Group, City of London Corporation, Big Society Capital and the Rockefeller Foundation.
Pradeep Jethi, Co-founder & CEO, said “We believe that organisations that place social and environmental aims at the core of their activities, whilst operating on robust revenue and growth models, are the ones best equipped to generate the kind of positive impact that creates real change. Nobody can guarantee a return on capital – but the SSE can guarantee the social benefit and standards of each and every company they admit.”
 Social impact investors plan to commit $9 billion in 2013 (JP Morgan, The Impact Investor Survey, January 2013) and JP Morgan predicts a market opportunity of between $200 and $650 billion in the next decade (JP Morgan, Impact Investment: a Burgeoning Asset Class, November 2010).