Social Stock Exchange
Money is being raised to start a global stock exchange that will allow investors to trade exclusively in companies with social and environmental goals. The Social Stock Exchange, to be based in London, could be operating within 18 months if the £2million needed to establish it can be raised from potential backers.
Pradeep Jethi, co-founder and chief executive, told EP the exchange will function like any other, will be regulated by the UK’s Financial Services Authority, and could list up to 200 companies within five years. The smallest companies considered for listing are likely to have an annual £500,000 turnover, and anyone applying will be subject to a social audit.
"We’re not talking about big companies with a good CSR record, but smaller ones that specialize in providing goods and services explicitly for a social purpose," said Jethi. "That could be anything from a company working in the healthcare or education field, to green technology businesses, fair trade enterprises and any of the ethical consumer companies out there. But this is not for start-ups – it’s for the more mature companies that need to raise significant amounts of money for growth and expansion."
The social stock exchange is a grantee of the Rockefeller Foundation's Impact Investing initiative.