Cambridge Initiative for Purposeful Finance
The Cambridge Initiative for Purposeful Finance is an impact-led initiative within the Centre for Financial Reporting and Accountability. It conducts research, teaching and advocacy to help build a more purposeful global finance industry.
About the Initiative
Finance provides essential services within our society. Indeed it is difficult to imagine a prosperous sustainable economy without an effective finance industry. However, the industry is rarely rigorously challenged to deliver on its purpose, still less measured and held accountable. If it is to improve, it needs to begin by establishing what its purpose is, measuring and transparently reporting how well it performs relative to that purpose, understanding what institutions and information are required to promote best practice, and promoting initiatives that will better deliver.
The initiative is multi-disciplinary and academically rigorous, aiming to inform practice and theory. Its influence aims to be global, but of particular relevance to the UK, given the importance of finance to the country’s economy. The initiative works on projects to help influence thinking in all sorts of fields where accountable and transparent finance is important, both for individuals, for companies and for society. This includes areas such as:
- economic growth
- pensions and other savings systems for old age
- climate change
- corporate and government investment and economic performance
- corporate governance
- appropriate information, and limits on disinformation
- financial inclusion
Our impact
Our impact comes through advocacy, teaching, research and debate. Examples of our work are discussed below:
Advocacy
Better pensions
The leaders of the initiative have been central to the introduction in the UK of private pensions which offer beneficiaries an income for life. This has involved that passage of legislation through parliament, and regulation to ensure the new pension system is safe. The work is ongoing but its effect is already apparent in the new collective pension plan introduced by Royal Mail for over 100,000 employees. Research suggests this will lead to pensions 30% higher than would otherwise have been available.
Climate and accounting
The leaders of the Initiative have led the campaign to ensure that climate risks, where material, are incorporated in company financial statements, as accounting standards suggest they should be. This ongoing advocacy has resulted in action by standard setters, investors and others, and is a critical element in creating a sustainable economy.
Research and debate
The Disinformation Summit
The Centre for Financial Reporting and Accounting hosts the premier global conference on the growing challenge of disinformation. This is a huge issue politically, but it also has profound consequences for the operation of capital markets.
Our board
Alan Jagolinzer
Director, Centre for Financial Reporting and Accountability
Professor of Financial Accounting
Hari Mann
Fellow (Centre for Financial Reporting and Accountability)
