The false dilemma: impact vs. competitiveness

BOTH by Ring Capital Issue #28 — Interview with Jana Bour, Director of Policy and Advocacy @ Impact Europe

Dear community,

This month, we spoke with Jana Bour, Director of Policy and Advocacy at Impact Europe, to delve into the shifting landscape of impact investing and why Europe must move past the false choice between competitiveness and sustainability.

At the heart of Impact Europe’s mission is a powerful belief: the fair transition isn’t at odds with economic growth — on the contrary, it’s a driver for innovation and the foundation of long-term competitiveness.

The real challenge lies in changing perceptions. For the European Union to lead the way in shaping a sustainable and competitive future, it must embrace this new narrative. The path forward is clear; what remains is the political and financial will to walk it. That’s why the impact ecosystem must keep pushing back outdated narratives and champion the pioneers proving that impact and profitability not only coexist, but reinforce one another.

And what better way to disrupt these conservative narratives than to highlight the power of innovation within the ecosystem, and the people who are working to bring it to life?

This is what Beyond Impact’s interviews are about: showcasing the faces behind vital change.

🫵 Which entrepreneur, solution, project or concept related to impact would you like us to cover in this newsletter? Feel free to send us your ideas!

Can you introduce yourself and tell us about your background?

I’m European. I’m originally from Slovakia, and I grew up in Central and Eastern Europe. After completing my master’s degree in the Netherlands, I spent about a year in London before settling in Belgium in 2012. My husband is French, and our children attend school in the Flemish part of Belgium, adding another layer of cultural diversity to our lives.

I truly appreciate the diversity of Europe, as it fosters creativity and innovation. Growing up in Slovakia, I was part of the first generation to experience freedom after socialism, allowing us to travel, explore new opportunities, and embrace a future that had once seemed out of reach. Today, we observe a troubling rise in dissatisfaction with the European project and an increase in radicalisation. I am not fearful, but I believe we must carefully consider how to move forward to prevent the collapse of such a significant and beneficial initiative as the European Union.

I’m the Director of Policy and Advocacy at Impact Europe. Initially, I aspired to become an attorney and advocate for people. And, in a way, I do advocate: for the entire impact investing ecosystem. So, in a very different context from what I imagined as a child. I love my work because of its complexity and diversity and because impact investing is very exciting, as it’s full of innovation. People in this space think outside the box by default and are actively exploring new ways of doing things. That spirit of innovation is something I really value, and it makes the ecosystem so unique in Europe.

What’s Impact Europe? What role do you play in uniting the European impact investing ecosystem?

Impact Europe’s origins lie in venture philanthropy. It’s a membership-based mission-driven organisation that supports impact investors. In 2024, a year after having rebranded from the European Venture Philanthropy Association (EVPA) to better reflect its evolving role, Impact Europe celebrated its 20th anniversary.

Today, Impact Europe gathers around 350 members and partners, including impact funds, philanthropic organisations, institutional capital providers, academics, and consulting firms specialising in impact measurement and management (IMM). At least 70% of our members must be impact investors to ensure we stay committed to our mission. But we maintain a collaborative spirit, working with partners from diverse backgrounds to raise awareness and further the cause of impact investing. Bringing together such a diverse group of stakeholders is not an easy task, especially in policy and advocacy, where concerns, challenges, and needs vary significantly. Our approach is to focus on the most meaningful policy and market development areas so that all our members find value within Impact Europe.

To foster market development, we structure our activities and teams to cater to different segments of investors, allowing them to learn from and collaborate with one another. This remains a work in progress, but we see significant opportunities to deepen our engagement and create an even more impactful ecosystem. We have a lot of space and great ideas for the future to go deeper in providing that space of uniqueness but also to meet together. Because, at some point, I think we will need to blend different types of finance to support both large-scale and smaller projects across Europe.

What are your core objectives and key points of advocacy?

Before the European elections, we published the Impact Manifesto in collaboration with national partners and the Global Steering Group for Impact Investment (GSG Impact). While we had some insights into potential political priorities, we had to refine our focus after the elections and the announcement of the European Commission’s work programme.

This year, we narrowed down our focus on two main priorities. The first is the Sustainable Finance Disclosure Regulation (SFDR), a crucial regulation for capital providers and impact investors. We are actively engaging in discussions to ensure its alignment with the principles of impact investing, striving for its effectiveness and broad application. We will also look at the Omnibus package, as we need to fully understand its implications on investors. The second priority is the Multi-Annual Financial Framework (EU Budget), with the European Commission set to present its proposal this summer. We’re concentrating on how public funds can be leveraged to support impact investing, particularly in innovation, sustainability, and competitiveness.

We understand that Europe’s priorities have shifted, with significant portions of the budget now focused on security and reindustrialisation. However, the hope is that sustainable transition will drive this reindustrialisation, ensuring that Europe evolves into a more innovative, competitive and sustainable continent.

We need to shift this mindset and show that competitiveness and transition are not mutually exclusive. […] Simplifying regulations while maintaining ambition is key to ensuring continued progress.

How do you navigate the ongoing debate between competitiveness and sustainability, especially as this debate gains momentum within the EU?

One of the biggest challenges in public debates is that the loudest voices often come from those opposing change. The EU Taxonomy was actually the fastest adopted piece of legislation in Europe, with little public debate and high political ambition. This rapid rollout of sustainability regulations has left some industries feeling overwhelmed. So there’s a noticeable pushback from some industries, particularly those facing the challenge of transforming their entire manufacturing processes.

In Europe, we often have a “too big to fail” mentality, where we try to rescue industries that are naturally declining, rather than allowing innovation to drive change and helping new entrants scale. We need to shift this mindset and show that competitiveness and transition are not mutually exclusive. Moreover, the focus must now be on supporting industries as they adapt, rather than allowing sustainability to be seen as an imposed burden. Simplifying regulations while maintaining ambition is key to ensuring continued progress. Ultimately, we need to present clear facts, engage in thoughtful dialogue, and remind stakeholders of the long-term benefits that come with a sustainable transition.

In the omnibus package recently presented by the European Commission, certain ambitions, such as the scope of the CSRD, have been scaled back. What are your thoughts on this?

We feel like we’re moving in the wrong direction, and there’s a lot of frustration among committed investors in sustainability and impact, which is entirely justified. It’s disappointing to see progress being reversed after so much work was put into these initiatives. However, one important thing to remember when it comes to legislation and regulation is that when people are forced to do the right thing, they often resent it.

We need to be careful with this in Europe. People want to make the right choices, but they need the freedom to choose to do so. In terms of communication and engagement with the ecosystem, we need to show them the path forward, not just impose it.

We’ve discussed the current context. Now, if we take a step backwards, how would you define impact investing?

When I first joined Impact Europe, we didn’t have a formal definition. Together with our national partners at GSG Impact, we’ve developed a definition based on three key criteria. The first is intentionality: The investment must have a clear, ex-ante and proactive intent to address a social or environmental issue while also generating financial returns. The second criteria is Impact Measurement and Management (IMM): Investors must track and manage the impact of their investments to ensure they achieve their intended outcomes. The third one, additionality, is often the hardest concept for non-impact investors to grasp. Additionality means that companies must contribute to solving a problem they didn’t cause, and investments must contribute to solutions that companies wouldn’t achieve on their own. This distinguishes impact investing from general sustainable or transition investments.

This definition also helps us communicate to stakeholders that impact investing is a rich space for innovation. Because you’re not just solving problems; you’re creating new business opportunities in the process. The political priorities driving us right now are also pushing us in this direction, and the evolution of these priorities toward meaningful impact depends on our ability to introduce impact investing in a more direct and clear manner.

How would you describe the impact investing dynamic in Europe? And how do you see its future evolving?

Europe’s impact investing landscape is highly diverse. Social impact investing, in particular, tends to be localised, addressing region-specific challenges, with varying social situations and issues across EU’s member states. As a result, there’s significant diversity within impact investing, shaped by factors such as capital market size, investor appetite, and regulatory frameworks. The United Kingdom boasts the largest impact investing market in Europe, driven by its sizable capital markets and strong investment culture. The Netherlands follows closely, with pension funds allocating substantial portions to impact investments. France stands out with its unique regulatory framework and well-developed social economy, creating a dynamic environment for impact investing.

Impact investing is the fastest-growing segment in finance, and policymakers are increasingly recognising its potential to drive innovation. At Impact Europe, we aim to reach €1 trillion in impact investments by 2034, requiring both private and public market scaling. To achieve this, we need greater awareness and financial literacy around impact investing, particularly among retail investors. Even a small portion of retail investments directed towards impact can unlock a massive new capital supply without affecting liquidity or returns, as seen with France’s solidarity funds, for instance. Legislative support through the EU budget and policies that reduce risks for patient capital will be vital for continued growth.

Impact investing also offers a way to address growing public disillusionment with politics, showing tangible results for people. As Europe strives for innovation and competitiveness, impact investing can play a central role.

What does the term "vitality" evoke for you?

For me, vitality represents life energy, freshness, and curiosity. It reminds me of my children — always eager to learn, never tired of discovering new things. That sense of wonder, openness, and excitement for what’s ahead: this is vitality.