The change in Labour leadership has been slightly lost in the coverage of coronavirus. However, Sir Keir Starmer’s election could lead to a deep change to the UK’s approach to responsible business and impact investing.

As part of his re-shuffle of Corbyn appointees, he has installed former Labour leader Ed Miliband as shadow business, energy and industrial strategy secretary. Despite his previous depictions as coming from the left, anti-business wing of the party, Mr Miliband has stronger pro-(responsible) business credentials than many may realise.

A cabinet minister in the New Labour government, a number of his policies have become part of the new mainstream focus on responsible capitalism: raises to the minimum wage, vocational training, cuts to business rates and a focus on executive pay, as well as a commitment to environmentalism.

Under Keir, Labour will be looking to regain its credibility with control of the economy while creating jobs and addressing the concerns of young votes. A focus on ESG matters and the ways in which the current economy can be made more impactful will be a natural source of policies.

Investors should keep an eye on policy proposals raised by Mr Miliband, as they may soon become government policy (whether under the Conservative or Labour party).