New platform highlights impact investing opportunities within the creative economy
2 February 2021 at 5:34 pm
“We passionately believe in the power of the creative economy to effect lasting positive social change, and in the huge opportunity for impact investment to support and amplify this change”
Impact investors are being urged to support the global creative economy, as a new project is launched showcasing the creative sector’s ability to foster inclusive and sustainable growth amid the ongoing COVID-19 recovery.
Creativity, Culture and Capital is a collection of essays that was unveiled this month to mark the start of the UN’s International Year of Creative Economy for Sustainable Development.
This project overall aims to promote the potential benefits of a global impact investment fund for the inclusive creative economy, and serve as an advocacy tool for such a fund’s creation.
Fran Sanderson is the director of arts and culture investments and programmes at Nesta, which is one of the partners of the project, along with Fundacion Compromiso and Upstart Co-Lab.
She said she was excited about what these essays could achieve.
“We passionately believe in the power of the creative economy to effect lasting positive social change, and in the huge opportunity for impact investment to support and amplify this change,” Sanderson said.
“The sector has achieved amazing things without a genuine global support structure, so we’re really excited to see where a more intentional effort could take this movement.”
The partners behind the project hope to publish 100 essays by the end of the year.
These essays explore two major themes. The first, creativity at work, shows how art, design, culture, heritage and creativity yield social and environmental benefits.
The second theme, connecting impact capital, discusses how impact investment is already financing creative economic activity in alignment with social values.
These essays are intended to provide a comprehensive glimpse of creative initiatives delivering positive impacts around the globe – from culture driving development in Buenos Aires to a blended finance solution for sustainable fashion and impact businesses in Brazil.
The report notes that the significant size and value of the creative economy is not yet fully recognised, with recent forecasts suggesting it could grow from making up three per cent of global GDP to around 10 per cent.
Laura Callanan, founding partner at Upstart Co-Lab, said impact investors could help fill the funding needs of the sector.
“The creative economy has the capacity to intrigue, engage, educate and activate more mindful consumers so that the benefits of ethical and sustainable supply chains and the full power of media to drive positive change can be realised,” Callanan said.
“Those who care about shaping a creative economy that is inclusive, equitable and sustainable will find numerous opportunities to deploy their values-aligned capital as the world rebuilds after the COVID-19 pandemic.”
Carolina Biquard, the executive director of Fundacion Compromiso, added that “creativity [was] the new normal”.
“Creativity is the way to connect our inspirations and cultural assets with the practical and economic sides of our lives,” Biquard said.
“Especially our youngsters will need to learn to live in a creative economy, in a creative system. We hope to help design the financial structure that this approach needs.”
You can check out the full report here.