The strategy was developed by the Australian Advisory Board on Impact Investing, part of Impact Investing Australia and comprising experienced leaders from the investment, business, not-for-profit, philanthropic and community sectors.
The strategy is part of a global initiative led by the Social Impact Investment Taskforce, established when the UK chaired the G8 in 2013.
The taskforce launched its global report yesterday, highlighting the critical role of governments in growing and participating in the market.
The Australian Advisory Board said the strategy for Australia will aim to raise $350 million in capital for a social investment fund as well as encouraging enterprises to improve service delivery and deliver better outcomes in areas that benefit society.
The strategy will also involve generating a survey of deals, investors and advisers to benchmark the field, and piloting aggregated investment data to build efficiency and scale
Enacting regulatory change and policy action in order to stimulate and support a market will also be necessary, according to the Australian Advisory Board.
The board said the government will also need to remove barriers to entry and innovation and take practical action in different areas and levels of government.
The Australian Advisory Board estimates that in the next decade, the market for impact investments is estimated to be valued at $32 billion within Australia alone, and US$500 billion to US$1 trillion globally.
The Australian representative for the taskforce and chair of the Australian Advisory Board and Impact Investing Australia, Rosemary Addis, said Australia is at the “vanguard of efforts to catalyse a global market for investments that have the potential to create real benefits for society”.
“This is not a simple redirection of responsibilities and capital,” said Ms Addis.
“It is an opportunity to transform our approach to social issues, and open up new avenues for innovation that grow economic as well as social value.”
Taskforce chair Ronald Cohen said he had high expectations for Australia with this strategy.
“[Australia] is staking its position as one of the leaders in the impact investment space,” he said.
