Purpose: The NWF is primarily a financial mechanism designed to mobilise private investment into strategic sectors. It aims to de-risk projects and attract capital by offering a range of financial tools such as loans, equity investments, and guarantees. The focus is on clean energy and infrastructure, supporting projects that align with the UK’s transition to a low-carbon economy and its Industrial Strategy.
Capital: The fund is capitalised at £27.8 billion, with an ambition to mobilise at least £70 billion in private investment. It acts as a catalyst for projects that might otherwise struggle to secure funding, ensuring they can scale up and contribute to national goals.
Sector Focus: The NWF primarily targets clean energy industries, including green hydrogen, carbon capture, battery manufacturing, ports, and renewable energy. It builds on the framework set by the UK Infrastructure Bank (UKIB) and seeks to drive innovation in sectors critical to the UK's Net Zero ambitions.
Function: Operates independently from the government but aligns with broader national priorities. It works closely with local authorities, businesses, and project developers to identify investment opportunities and support regional growth.
Governance: Led by a CEO and a board that includes government representatives, ensuring transparent and strategic allocation of funds.
Invest 2035: The UK’s Modern Industrial Strategy
Purpose: Invest 2035 is a strategic plan that provides a comprehensive 10-year vision for economic growth across multiple sectors. It addresses broader economic challenges, aiming to create a pro-business environment, stimulate innovation, and promote regional development. The strategy seeks to ensure long-term stability, inclusivity, and resilience in the UK economy.
Scope: Unlike the NWF, which is focused on funding specific projects, Invest 2035 outlines policy frameworks, sectoral strategies, and cross-cutting initiatives to support growth across eight key sectors: Advanced Manufacturing, Clean Energy, Creative Industries, Defence, Digital & Technologies, Financial Services, Life Sciences, and Professional & Business Services.
Sector Focus: While clean energy is a critical part of Invest 2035, it also includes broader sectors such as digital technology, creative industries, and financial services. The strategy aims to unlock the UK’s potential across these sectors by addressing barriers like skills shortages, regulatory constraints, and infrastructure needs.
Function: Invest 2035 sets the overall strategic direction for the economy, creating a framework that encourages businesses to invest, innovate, and expand. It provides a vision of where the UK should be by 2035, supporting businesses through policy reforms, incentives, and partnerships with local and international stakeholders.
Governance: The strategy is driven by the UK government, with plans to establish a statutory Industrial Strategy Council to ensure the continuity and adaptability of the strategy over the next decade.
The Role of Sustainability Reporting in Business Strategy
As a bid support specialist, I see firsthand how crucial clear, quantifiable KPIs are in securing funding and multistakeholder support for projects. By establishing these metrics early on, we can manage expectations, ensure accountability, and provide structure to conversations. It’s essential that the NWF and Invest 2035 follow this approach, with clearly defined KPIs and credible sustainability reporting frameworks guiding the implementation of these initiatives.
For the NWF and Invest 2035, a consistent approach to sustainability reporting can serve as a tool to:
Attract Investors: By providing clear and credible data on sustainability impacts, businesses can make their projects more appealing to investors who prioritise ESG factors.
Ensure Accountability: With established metrics, both initiatives can monitor progress, assess the effectiveness of funded projects, and make data-driven adjustments as needed.
Enhance Collaboration: Consistent reporting creates a common language for businesses, investors, and policymakers, facilitating partnerships and joint initiatives across sectors and regions.
The Role of GRI Standards in Enhancing Sustainability Reporting
Providing a Universal Framework: One of the challenges in the sustainability landscape is the inconsistency of reporting standards, which can lead to confusion and a lack of comparability. The Global Reporting Initiative (GRI) standards offer a universal, internationally recognised framework that simplifies sustainability reporting, making it easier for businesses to communicate their impacts clearly and consistently.
Enhancing Transparency and Accountability: Transparency is key to building trust, and GRI standards are designed to ensure that organisations disclose their sustainability impacts accurately and openly. By encouraging businesses to adopt these standards, the NWF and Invest 2035 can promote a culture of accountability, where projects are evaluated not just on financial returns but also on their contributions to environmental and social wellbeing. Furthermore, transparent reporting enables stakeholders to hold businesses accountable for their sustainability commitments, ensuring that companies deliver on their promises and that the funding allocated to projects under the NWF and Invest 2035 is used effectively.
Supporting Long-Term Success: Sustainability reporting is not just about compliance; it’s about setting long-term goals, tracking progress, and adapting strategies as needed. GRI standards encourage businesses to adopt a holistic approach to sustainability, focusing on areas such as carbon emissions, waste management, resource efficiency, and social impact. By integrating these elements into project planning and execution, the NWF and Invest 2035 can ensure that the projects they support are aligned with long-term sustainability goals. For businesses, this alignment means not only fulfilling regulatory requirements but also gaining a competitive advantage by demonstrating their commitment to sustainability—a factor that increasingly influences investment and procurement decisions.
The National Wealth Fund and Invest 2035 are ambitious initiatives that have the potential to reshape the UK economy, driving growth, innovation, and sustainability. However, to ensure their success, there must be a consistent approach to measuring and reporting sustainability impacts. Adopting GRI standards can provide the clarity, transparency, and accountability needed to make these initiatives a success, ensuring that the UK not only achieves its economic goals but does so in a way that is sustainable, inclusive, and resilient.
For businesses and stakeholders, the message is clear: adopting robust sustainability reporting practices will be key to aligning with the UK’s growth vision, attracting investment, and building a stronger, more sustainable future. Now is the time to take action, embrace universal standards, and set a benchmark for the rest of the world to follow.
About the Author: Omar Hadjel MCIM is a marketing consultant, bid support specialist, and certified sustainability professional. With extensive experience helping businesses navigate public sector procurement, Omar supports organisations in developing winning proposals that align with sustainability best practices. His insights on the integration of ESG principles and investment readiness can be found on his website and various thought leadership platforms.
