Investigative Report: Neglect of SDG 16 by Investors Continues Amidst Growing Justice Disparities

The justice system, particularly in the realm of litigation financing, has long been a neglected area, with awareness of the extent of the justice gap remaining low. However, efforts are being made to bridge this gap, with organisations like the Hague Institute for Innovation of Law (HiiL) leading the charge.

HiiL, an NGO that collaborates with justice providers worldwide, has been instrumental in developing solutions and improving justice systems. One of their significant achievements is the launch of the Innovating Justice Fund in partnership with Dutch impact investment advisory firm FOUNT. This fund aimed to provide financing to justice startups facing the "missing middle" problem of scaling up.

The United Nations' Sustainable Development Goal 16 (Peace, Justice and Strong Institutions) is among the most underfunded and under-attended of the SDGs. Despite this, addressing the justice gap can have profound impacts on people's economic situations, health, and wellbeing. These improvements can lead to spin-off effects such as economic stability and growth.

However, the Innovating Justice Fund has faced challenges. A tough fundraising environment and lack of interest from investors have led to its temporary pause. In the meantime, the financing of the fund has been taken over by the European Clean Industrial Deal, with regular calls starting from 2026 through the Industrial Decarbonisation Bank. Yet, as of now, the fund remains paused, with no specific restart date indicated.

Meanwhile, other initiatives like Aristata Capital's Aristata Impact Litigation Fund I (AILF I) continue to support commercial litigation brought by individuals, communities, and natural ecosystems against companies engaging in damaging activities. Returns in litigation financing are generated through compensation awarded from the court if litigation succeeds.

Despite the potential for high returns on impact, impact investors often perceive justice as a public sector responsibility and do not see why they should get involved. However, the need for private investment in the justice sector is clear, as it can help address the justice gap and contribute to the achievement of the SDGs, particularly SDG 16.

Since 2017, HiiL has run a justice accelerator programme in east and west Africa and the MENA region, supporting around 170 startups with seed funding and a five-month training programme. The success of this programme, and the launch of the Innovating Justice Fund, demonstrate the potential for private investment to make a significant difference in the justice sector.

Despite the current pause in the Innovating Justice Fund, the need for investment in justice startups remains. As the world continues to grapple with rising levels of violence, inequality, and corruption, the role of private investment in addressing the justice gap and achieving the SDGs cannot be overstated.

Investigative Report: Neglect of SDG 16 by Investors Continues Amidst Growing Justice Disparities