Nick Hurd, Chair of GSG Impact and former UK minister, argues in Pioneers Post that the transition to impact economies is already underway, despite political pushback in some markets.

Hurd highlights the distinction between short-term political cycles and the long-term structural shift towards economies that factor people and planet into investment decisions, for which he identifies three core drivers:

• climate instability’s status as a major business and portfolio risk that needs to be understood and managed;
• growing data showing that understanding impact is part of managing investment risk and opportunity;
• increasing pressure on governments to deliver better outcomes with limited public budgets.

“The cost of climate instability is now measured in hundreds of billions of dollars each year – much of it uninsured, or even uninsurable. Failure to understand and manage that risk is an abdication of fiduciary duty,” says Nick Hurd.

For Europe, Hurd stresses that the EU’s role as a standards-setter and rule-maker is crucial. He argues that transparency, disclosure, and impact-focused regulation are essential for competitiveness and for building resilient impact economies.