The AI3: A Policy Platform for Impact Investing in the US

Patrick DugganImpact InvestingLeave a Comment

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The AI3 is building a coalition of individuals from across sectors – investors, government agencies and philanthropic organizations – to develop a policy framework that supports impact investing in the United States, from conception to implementation. The AI3 will produce a policy platform that enables policymakers  to more effectively set laws and regulations that foster impact investing, as well as direct new streams of capital to the field.  The AI3 will develop the platform after consulting with experts across sectors, conducting policy landscaping and in depth research, and facilitating outreach activities.

The AI3 will work on linking and elevating existing efforts and programs. Additionally through its policy platform, the AI3 will function as a coordinated hub for addressing the historic and structural fragmentation in the U.S. impact investing market.

Why Impact Investing?

Impact Investing – the practice of investing to generate positive social and/or environmental outcomes in addition to financial returns  – is recognized as a tool that enables the development of innovative, sustainable methods for addressing the world’s most intractable problems.  In the United States especially, impact investing holds the power to spur much needed economic development in underserved markets, specifically by:

  • Growing enterprises and creating quality jobs
  • Building sustainable community infrastructure (i.e. schools, housing, transportation, and health care assets)
  • Supporting businesses that create beneficial social and environmental impact through products, services, or operational performance

The Need for Public Policy Support

 

A growing number of practitioners in the impact investing field share the belief that the government should play a key role in developing and supporting free market tools that positively impact struggling communities. As impact investing is increasingly seen as a tool for social innovation, policy is essential for developing new financial products that benefit those most in need.

In fact, recent research produced in part by InSight at PCV has showcased “policy symbiosis” as a core element of success in impact investing.

Project Partners

The AI3 has been convened as a Partnership between PCV InSight, Enterprise Community Partners, and the Initiative for Responsible Investment at the Hauser Institute for Civil Society at Harvard University. Ford Foundation and Surdna Foundation have provided the initial project support.

We invite you to engage in this effort to pilot a cohesive and effective policy platform to scale impact investing for social good in the United States. Please join in the conversation and send us your feedback at ai3@pcvmail.org

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