The year ended March 2026 marked the mid-point of our five-year strategy. It was a year in which we leaned into our fundamental role as a platform for market influence, helping to change the conversation with government on impact investing, strengthening our connectivity with the capital markets, and putting the Institute’s finances and operations on a firmer footing. Our strategy continues to work towards mobilising an additional US$1 trillion of impact capital into investments that benefit people and the planet, with a clear focus on getting capital to where it is needed, mobilising new and more effective impact capital, and creating an enabling policy environment.

Our most significant progress came in our work with government. Supporting the independent Social Impact Investment Advisory Group, we contributed to a shift that has brought impact investing closer to the centre of economic policy, including the establishment of a dedicated Office for the Impact Economy and a new £500 million Better Futures Fund.

Alongside this, we continued to help private capital find its way to where it is needed most. Through our Challenge Labs we advanced practical solutions on place-based investment, on outcomes for children and future generations, and on a fair and inclusive climate transition. Through our Field Building we supported investors, particularly private wealth holders and foundations, to build their conviction and capability to invest for impact. The UK market proved resilient in a volatile year, and these signs of progress bring us closer to our goal of a £150 billion UK impact investing market by 2029.

None of this would be possible without our people. The Institute’s greatest asset is a small, dedicated team whose expertise, energy and independence of mind sit at the heart of everything we do, supported by a committed board and a generous community of partners. In July 2026 we announced that, after seven years with the Institute, Bella Landymore will step down at the end of the year, and that Sarah Teacher will become Chief Executive from January 2027. Our years of co-leadership have been deeply rewarding, and we make this transition with real confidence: in the strength of the team, in the platform we have built together, and in the Institute’s ability to keep pursuing the ambition that has defined our work, to help build capital markets that drive a fairer, greener, more resilient future.

Bella Landymore and Sarah Teacher

It is a privilege to introduce the Impact Investing Institute’s annual report for the year ended March 2026, at the mid-point of our five-year strategy and an important moment for both the Institute and the wider field.

Impact investing directs private capital towards public good: housing, health, economic opportunity, a stable climate. Since the Institute was established, impact investing has moved further into the financial mainstream. It is increasingly part of how investors think about long-term value, and how government thinks about mobilising private capital to meet the country’s economic, social and environmental priorities.

This year gives us further grounds for confidence. Impact investing has become more prominent within UK economic policy, while we have continued to focus on the practical work required to turn ambition into investment. Our work on place-based investment, on children and future generations, and on the just transition is developing practical pathways for capital to address important social and environmental needs. Our longstanding work on fiduciary duty illustrates the potential scale of this agenda: changing how trustees think about members’ long-term outcomes can influence decisions across trillions of pounds of pension capital.

The Board has been equally focused on ensuring that the Institute is equipped for the next stage of its development. Our financial position strengthened during the year, with a surplus and unrestricted reserves increasing to approximately six months of operating expenditure. That gives us a stronger platform from which to manage risk, invest in our capabilities and pursue our ambitions.

We have also begun an important renewal of the Board. As several founding directors reach the end of their terms, we are bringing in the skills and networks the Institute will need for its next chapter, particularly from mainstream financial markets and philanthropic networks. I extend my deep gratitude to Olivia Dickson for her service on retiring from the Board, and I am delighted to welcome Laura Barrow.

This is also a year of leadership transition: after seven years at the heart of the Institute, Bella Landymore will step down as Co-Chief Executive at the end of 2026, with Sarah Teacher becoming Chief Executive from January 2027. On behalf of the Board, I want to thank Bella for the enormous contribution she has made to building the Institute, and express our confidence in Sarah as she leads it into its next chapter.

The opportunity ahead is substantial. Impact investing is now part of the conversation; our task is to help make it a more significant part of how capital markets operate — turning growing interest and policy momentum into capital deployed at much greater scale.

I would like to thank Sarah, Bella and the entire Institute team for their commitment and expertise, my fellow Board members for their stewardship, and our funders and partners for their continued support.

The directors present their annual report and financial statements for the year ended 31 March 2026.

The principal activity of the company continued to be that of the advancement of sustainability and community development in the UK and elsewhere in the world, in particular, by encouraging and supporting the development and expansion of impact investing and/or by such methods directed towards the achievement of positive social and environmental impact as the directors may from time to time think fit.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, Saffery Audit (UK) LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

We have audited the financial statements of Impact Investing Institute (the 'company') for the year ended 31 March 2026 which comprise the income statement, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its surplus for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Impact Investing Institute is a private company limited by guarantee incorporated in England and Wales. The registered office is 2nd Floor, 55 Ludgate Hill, London, United Kingdom, EC4M 7JW.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, recent management accounts, forecast future cash flows and the potential impact of foreseeable subsequent events in making their assessment. The Directors have performed a robust analysis of forecast cash flows and movements in reserves, looking at secured and pipeline income on realistic worst case, base case and realistic best case scenarios covering the twelve month period from the date of signing the financial statements. Separately the Directors have considered measures available to assist in mitigating financial risks. Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that the Impact Investing Institute will be able to meet its obligations as they fall due for trueat least twelve-months after the financial statements are approved and that they can continue to adopt the going concern basis in preparing the financial statements.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Government grants and other grants are recognised on the accruals basis, recognising income over the periods in which the company recognises the costs for which the grant is intended to compensate.

Supporter contributions are recognised in the period during which the engagement with supporters takes place. Contributions received in respect of future periods are deferred.

Other grants are recognised over the periods in which the company recognises the costs for which the grants are intended to compensate.

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been

enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

The Company operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Donated services, facilities and gifts in kind

Donated services, facilities and gifts in kind are recognised as income and expenditure in the financial statements when companies or individuals offer their professional expertise on a pro bono basis. The value to the company of these donated services and facilities is an estimated figure based upon the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market. A corresponding amount is included in expenditure in the period of receipt.

Debtors

Short-term debtors are measured at transaction price, less any impairment.

Creditors

Short-term creditors are measured at the transaction price.

The company has recognised the following government grants during the year:

City of London Corporation totalling £100,000 (2025: £200,000), the total amount of this grant recognised in deferred income is £nil (2025: £nil). During the year £nil (2025: £50,227) of deferred income was released.

Department for Digital, Culture, Media and Sport totalling £371,964 (2025: £345,000), the total amount of this grant recognised in accrued income is £92,214 (2025: £nil).

The company has recognised grants and project funding from the following partners during the year:

Amber Infrastructure Limited

Azarine Limited

Baillie Gifford

Bernard van Leer Foundation

City Bridge Foundation

City of London Corporation

Collective Futures CIO

Connected Places Catapult

Department for Business and Trade

Department for Digital, Culture, Media and Sport

EdenTree Investment Management Limited

Esmée Fairbairn Foundation

Friends Provident Charitable Foundation

Golden Bottle Trust

Joseph Rowntree Foundation

Laudes Foundation

Neuberger Berman

Newton Investment Management

Scottish National Investment Bank plc

Sorenson Impact Foundation

T. Rowe Price

The Community Development Finance Association (Responsible Finance)

The Save the Children Fund

Tribe Impact Capital LLP

UFI Charitable Trust

Ursimone Wietlisbach Foundation

Wellington Management International

WHEB Asset Management LLP

The company has recognised support from the following financial services partners:

Abrdn plc

BlackRock Investment Management (UK) Limited

CFA Institute

Federated Hermes Limited

Generation Investment Management LLP

HSBC Global Asset Management (UK) Limited

Legal and General Resources Limited

M&G Corporate Services Limited

Morgan Stanley & Co. International plc

Schroder Unit Trusts Limited

Threadneedle Asset Management Limited

The company also recognised donated services and facilities during the year totalling £183,049 (2025: £323,985), which consist of use of office and meeting space, donor secondees and pro bono legal and research work.

The average monthly number of persons employed by the company during the year was:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Government grants income is recognised over the periods in which the company recognises the costs for which the grant is intended to compensate.

Supporter contributions are recognised in the period during which the engagement with supporters takes place and in accordance with supporter agreements.

Other grants are recognised over the periods in which the company recognises the costs for which the grants are intended to compensate.

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £10.

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £87,733 (2025: £101,969). Contributions totalling £7,849 (2025: £7,187) were payable to the fund at the reporting date and are included in other creditors.