Forster Communications has partnered with NPC (New Philanthropy Capital) to publish Impact UK, which for the first time estimates the scale, scope, and power of the UK’s impact economy – contributing £428 billion in gross value added to the UK economy as a whole and, at 15% of UK GDP, one of the most significant sectors in the economy.
The agency, one of the founding B Corps in the UK and a pioneering progressive business since it was founded in 1996, is calling on more organisations to recognise both their role in the impact economy and the potential it has to deliver positive impact.
The report, with contributions from leaders across the impact economy, highlights the scale, vibrancy and diversity of the organisations that form it, and compares it to other significant economies, such as the creative and manufacturing sectors.
Amanda Powell Smith, CEO of Forster, said:
“I’m immensely proud that Forster is a part of the impact economy and incredibly excited about what it could achieve if we can ditch the different labels organisations wear and come together to radically increase the impact we can make on the big challenges our society is facing. PR agencies should be at the forefront of raising awareness of the potential of the impact economy, aligning their clients with it and considering the role they can play as impact-led businesses themselves.”
The report points to a real opportunity to grow the impact economy. It highlights how businesses that consider themselves impact-led have grown threefold over the last decade as evidence of a rapidly strengthening movement, and it tells the stories of ten philanthropists committed to the impact economy. Impact UK builds on previous NPC research last year that giving by high net-worth individuals has grown by an average of 18% a year since 2020.
The analysis brings together all parts of the impact economy, defined as an ecosystem of individuals, organisations and capital prioritising public benefit over private gain. It includes both the regulated impact economy – charities, universities, community benefit societies, trade unions, housing associations, political parties and Community Interest Companies – and the self-regulated impact economy of mission-led and impact-oriented businesses, friendly societies, mutual insurers and credit unions.
Momentum behind the impact economy is growing, with developments such as the creation of the Office for the Impact Economy and increased attention across academia, policymakers and investors. NPC explains that now is the moment to build on this progress, deepen understanding and encourage more people to contribute, participate and invest so the impact economy can grow and deliver even greater public benefit.
James Perry, Co‑Founder of COOK and Co‑Chair of B Lab UK, said:
“This report shows that the impact economy is a major economic force shaping the future of the UK for the better. Its scale demonstrates what happens when purpose-driven organisations, investors and communities pull in the same direction. If we continue to accelerate this momentum, the UK has the opportunity to lead the world in building an economy that creates value for people and planet.”
Read the report here.
About the report
Impact UK is supported by Esmée Fairbairn Foundation, Mishcon de Reya, Lloyds Bank Foundation, Better Society Capital and Forster Communications. It includes new analysis, stories from across the ecosystem, and a detailed methodology developed with input from an advisory group and technical partners.