Take Survey
NEWS  |  Politics

The ‘London Principles’ on Impact Investing

Wednesday, 24th July 2013 at 10:20 am
Staff Reporter, Journalist
The global Impact Investing Policy Collaborative (IIPC) has published a set of guidelines to inform worldwide government policy on impact investment.

Wednesday, 24th July 2013
at 10:20 am
Staff Reporter, Journalist



The ‘London Principles’ on Impact Investing
Wednesday, 24th July 2013 at 10:20 am

The global Impact Investing Policy Collaborative (IIPC) has published a set of guidelines to inform worldwide government policy on impact investment.  

The Impact Investing think tank released the ‘London Principles’ at its third annual conference in the UK earlier this month.

Clarity of Purpose, Stakeholder Engagement, Market Stewardship, Institutional Capacity and Universal Transparency were the key factors spotlighted as requiring government attention.  

“The London Principles are designed to support a reflective approach to policy that drives learning and innovation over time to achieve important social objectives,” the preamble stated.

“They do not dictate what a government should do, but rather offer guideposts that ideally point to better strategy and policy development.

“The London Principles are drawn from a multitude of political, economic, and cultural contexts, and have been developed to address different places across varying stages of impact investing ecosystem development.”

The IIPC seeks promote impact investing markets through development of a global network for policy research and innovation. It brings together researchers, public officials, advocates, and investors from over 20 countries.

Held at rotating international locations, this year’s conference was hosted by the Skoll Centre for Social Entrepreneurship and was held at the University of Oxford and also in London.

The guidelines were drafted by a core group of 30 IIPC members and were  finalised by a larger group of stakeholders in the later stages of the event.

The IIPC Advisory Council integral in the process included two representatives of Australian organisations: Rosemary Addis from the Department of Education, Employment and Workplace Relations and Les Hems from the Centre for Social Impact.

A summary of the London Principles:

Clarity of Purpose

Governments should:

  • Identify the social objective(s)
  • Identify why the policy might be an appropriate tool to meet those objectives
  • Define realistic expectations for the potential results and the timeframe they might be achieved in


Avoids inefficient use of resources, insufficient policy support that affects the achievement of outcomes, and non-cohesive policy regimes.

Stakeholder Engagement

Governments should:

  • Identify and collaborate with key stakeholders throughout the policy design and implementation process.
  • Support shared ownership of policy and ‘a dynamic process of policy development and review.’
  • Avoid misaligned incentives or unequal power structures that counter effective policy.


Dialogue with stakeholders manages expectations and avoids the development of ineffective policies. Governments can also bring important additional resources to support impact investing policy.

Market Stewardship

Governments should:

  • Identify the appropriate use of market interventions
  • Develop markets holistically
  • Support reliable and responsive policy that is stakeholder-conscious


Effective market stewardship sets appropriate levels of regulation and cuts out unnecessary management of market activity.

Institutional Capacity

Governments should:

  • Determine the cross-sector resources within government needed for successful policy.
  • Develop public sector leadership to implement policies where needed and provide stability.
  • Measure and evaluate the impact of policies against stated objectives, and adjust policy accordingly.


Institutional capacity promotes the effective use of resources, adds value to existing policies, and creates the potential for developing innovative strategies and tools that address key social problems. Institutional capacity establishes reliable and resilient markets, and avoids sending mixed signals to investors and civil society on the potential for intended policies to deliver on their promises.

Universal Transparency

Governments should:

  • Report thoroughly on performance and develop a culture of transparency.
  • Commit to processes of shared learning, including open dialogue on successes and failures.
  • Promote adherence and engagement with stated social objectives.


Effective universal transparency enables leadership in public innovation, protects against bias, realistically manages expectations, and empowers citizen participation.

Click here to read the full copy.

Staff Reporter  |  Journalist  |  @ProBonoNews

Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Write a Reply or Comment

Your email address will not be published. Required fields are marked *


NSW Government Called to Help NFPs Become Energy Efficient

Luke Michael

Tuesday, 11th December 2018 at 8:29 am

Tackling Entrenched Disadvantage With Impact Investing

Luke Michael

Tuesday, 13th November 2018 at 8:44 am

Cross-Sector Coordination to Tackle Homelessness

Maggie Coggan

Wednesday, 24th October 2018 at 5:50 pm

Developments in the Cooperatives Movement


Tuesday, 16th October 2018 at 8:49 am


Australia’s 2018 Human Rights Performance Slammed

Luke Michael

Wednesday, 9th January 2019 at 3:24 pm

Labor Shake-Up to Jobactive Celebrated by Sector

Maggie Coggan

Wednesday, 9th January 2019 at 5:09 pm

Review Reveals Significant Failures in Disability Service Provision

Luke Michael

Tuesday, 8th January 2019 at 4:52 pm

Campaign to Free Aboriginal Women Raises Almost $300K

Luke Michael

Monday, 14th January 2019 at 5:19 pm

Take Survey
pba inverse logo
Subscribe Twitter Facebook

The social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!