1. Developing Missions for the Bank
Implementation Plan and Public Consultation
7. The Implementation Plan for the Bank stated that any missions developed should align to economic policy priorities of the Scottish Government. While it was out with the scope of the Implementation Plan to propose such missions, the following examples were suggested:
- Transitioning to a low carbon economy, including decarbonisation of the transport network;
- Promoting inclusive growth through place-making and local regeneration, including site preparation, infrastructure (transport and communication links) housing and related commercial, education and health investment; and,
- Responding to emerging demographic pressures, including the twin challenges of an ageing population and wider population health.
8. The second public consultation gathered further views and suggestions regarding potential missions the Bank could adopt. Responses generally fell within broad themes which were:
- Carbon reduction (a significant number of respondents indicated that carbon reduction should be a key mission for the Bank);
- Ageing population;
- Innovation; and,
- Ethical investment.
The Institute for Innovation and Public Purpose's Mission-Oriented Framework for the Bank
9. In 2019, A Mission-Oriented Framework for the Scottish National Investment Bank (written by Professor Mariana Mazzucato and Laurie Macfarlane from the Institute for Innovation and Public Purpose (IIPP)) was published. The Framework states that missions should:
- Have a clear direction;
- Be targeted, measurable and time-bound;
- Be ambitious but realistic;
- Be cross-disciplinary and cross-sectoral; and,
- Involve multiple, bottom-up solutions.
10. This Framework has informed development of the proposed missions for the Bank, along with stakeholder engagement, the illustrative missions in the Implementation Plan, Government policy priorities and the National Performance Framework (NPF). Further information about the IIPP's Mission-Oriented Framework for the Bank can be found in Appendix A.
Proposed Missions for the Bank
11. The proposed missions for the Bank are set out below. These missions respond to specific 'grand challenges' facing Scotland as required by the IIPP's Mission-Oriented Framework.
Grand Challenge 1:
Mission 1 (Net Zero Mission):
Achieving a Just Transition to net zero carbon emissions by 2045.
Invest in rebalancing our economy towards leadership in sustainable technology, services and industries.
Grand Challenge 2:
Mission 2 (Place Mission):
Extending equality of opportunity through improving places by 2040.
Invest in places and regeneration to reduce inequality, and improve opportunities and outcomes for people and communities.
Grand Challenge 3:
Mission 3 (Demographic Mission):
Harnessing innovation to enable our people to flourish by 2040.
Invest in innovation and industries of the future for a healthier, more resilient and productive population.
12. In order for the Bank to make a significant impact against the missions set for it, there is a limit to how many it can have. This is why the Government is proposing that three missions are initially set for the Bank.
13. The long-term nature of the grand challenges mean that social, economic and environmental returns should not be expected immediately after the Bank has been vested. Therefore, while the Bank is expected to deliver both financial and non-financial impact, it should be noted that it will take time for impact to be evidenced against the missions.
14. It is envisaged that while investing towards a particular mission, there will likely be knock-on effects that result in positive outcomes against other missions set for the Bank. For example, investing in a project which contributes towards a Just Transition to net zero could then also reduce disadvantage, and improve opportunities and outcomes in the place in which that project is based.
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