The context in which business investment decisions are made is shifting. The challenges of our age - automation, decarbonisation, digitalisation - are posing questions that require new solutions.
Customers are also demanding far more of the companies that they work with. Investment decisions are no longer framed in solely economic terms; societal, environmental and cultural factors now play an increasingly important part in the decision-making process.
Wales is embracing this changing landscape. New relationships with businesses will be based around distinctive economic contract, which places investment with social purpose at its core. The four pillars of social purpose underpin the contract, with key calls to action identified as the focal point for investment decisions.
Together, they provide a framework for deeper, more meaningful partnerships with the companies that we work with, for everyone's benefit.
The economic contract will require businesses seeking investment to demonstrate that they meet the four pillars of social purpose.
These will be the first stage requirements for businesses before being considered for funding.
- Growth potential (measured for example, by contribution to employment, productivity, or multiplier effects through the supply chain)
- Fair work (as defined by the Fair Work Commission)
- Promotion of health, including a special emphasis on mental health, skills and learning in the workplace
- Progress in reducing carbon footprint
Companies who can demonstrate the above will then be expected to contribute to at least one of our five calls to action which are designed to address the challenges of tomorrow.