Social Stock Exchange

The Social Stock Exchange (SSE), launched in the United Kingdom in June 2013, was established to connect social impact businesses with investors seeking to generate both financial returns and positive social or environmental change. Co-founded by Pradeep Jethi, a former London Stock Exchange executive, and Mark Campanale of Carbon Tracker fame, the SSE was inaugurated at a G8 summit on social investment and finance. The platform was designed to serve a global market, providing capital to organizations addressing social and environmental issues.

The SSE operates as a matchmaking platform, not a direct trading venue. It functions as a directory and research service, providing information to help investors identify and compare organizations that create value for society and the environment. Companies seeking inclusion on the exchange must already be listed on a recognized stock exchange and pass a rigorous, independent social impact assessment. This process requires them to publish an annual Impact Report detailing their social or environmental purpose, who benefits from their activities, how they deliver this impact, and how they engage with stakeholders. Initially, the SSE listed eleven companies with a collective market capitalization of nearly £470 million, operating in sectors like healthcare, low-carbon economy solutions, and services for people with disabilities.

In February 2018, the Social Stock Exchange underwent a significant restructuring. Its operations and management team transitioned into a new entity, the Impact Investment Network (IIN), which became the first exclusive licensee of the SSE's accreditation methodology for a year. The SSE itself evolved into a trust and a licensing body. In this new capacity, the SSE focuses on setting impact standards and accrediting social businesses through an independent admissions panel, licensing its methodology to other stock exchanges and financial institutions. This model caters to both for-profit enterprises (FPEs) and non-profit organizations (NPOs), connecting them with investors. The target clients are institutional investors and others with a social orientation, aiming to facilitate the growth of impact investment strategies. The businesses themselves are typically medium-sized, with a track record of activity and financial stability, operating in high-impact sectors such as social housing, sustainable transport, renewable energy, and ethical consumerism.

Keywords: Social Stock Exchange, impact investing, social impact business, ESG, sustainable finance, social enterprise funding, corporate social responsibility, ethical investment, green economy, social impact assessment, non-profit organization funding, for-profit enterprise, responsible investing, matchmaking platform, social value, environmental change, sustainable development, impact measurement, Pradeep Jethi, Mark Campanale