How do we measure social impact? Our Lead Art Consultant Meela Thurloway explores concepts of value associated with investing in art that goes beyond ownership.

The essence of art transcends ownership, serving as a dynamic lens for interpreting our ever-evolving world. Artistic expression, rooted in storytelling - not trade - has been the driving force for collecting for millennia. In ancient Greece and Rome, art signified status; the Renaissance connected it to intellectual pursuits; the 17th and 18th centuries saw art markets emerge; the 19th century introduced public museums, and the 20th century brought investment motives. Today, motivations for both creating and collecting art continue to evolve.

The art market is a complex cultural constellation, requiring nuanced consideration of economic and cultural dimensions to assess value. Economic worth is linked to supply and demand, while cultural value, rooted in societal significance, impacts economic value. Recognising art's power to tell stories, encourage human connection, and foster community introduces an alternative metric: social impact.

Embracing art for social impact is not merely a value proposition but a strategic imperative for businesses. Michael Blake, recipient of the Public Sector Impact Award at the UK Real Estate Investment & Infrastructure Forum (UKREiiF) 2023, brings over a decade of expertise in social value and community wealth building. As the Founder of The Impact Sanctuary, a network supporting organisations focusing on purposes beyond profit, Michael asserts that “successful businesses must embed social impact into all aspects of their operations.”

The social (‘S’) aspect in the ESG (Environmental, Social, and Governance) framework is gaining prominence, having previously taken a backseat to environmental considerations. Michael underscores the “growing importance for organisations to establish a process and framework for measuring positive social change. Whether through quantitative or qualitative approaches, organisations bear the responsibility to play a pivotal role within communities, broadening perspectives and considering the long-term legacy of their actions.” Integrating social concerns into sustainability strategies is essential, with many arguing that one cannot be successfully addressed without the other. Applying the notion of art's social impact to another pressing issue - rethinking our approach to consumption - a circular model provides a unique opportunity to leverage art's power to connect and build resilient communities without necessitating the production of something new.

Leasing art transcends traditional ownership models, providing sustainable support across the arts ecosystem. For artists, it enables income diversification, fair pay, and contributes to a circular economy by exhibiting artworks that might otherwise be confined to studios or storage. Lessees highlight benefits, including meaningful storytelling about who they are and what they represent, as well as aesthetic and financial flexibility. They also emphasise the advantages of broader impact through ongoing connections and opportunities for local creatives, fostering community cohesion and, thus, enduring positive social impact.

EQT, a purpose-driven global investment organisation, partnered with us to develop an art strategy reflecting its commitment to sustainability and local talent. Their inaugural London art collection supports over 20 emerging local artists, ensuring a regular income throughout the leasing period. 90% of our clients, including EQT, rotate their collections annually, meaning different artists are being paid and their works are shown to an ever-growing audience. This initiative forges a genuine connection between businesses and their locale, fostering a dynamic collection adaptable to evolving brands and societies.

Recognising the value of strategic investment in leasing art for businesses, Philippa Wagner, Founder and Creative Strategy Director at PeoplePlacesSpaces, incorporated this approach into the strategy for the concept hotel MM:NT Berlin Lab. Philippa identified the opportunity to lease work from emerging Berlin-based artists as an empowering way to support the local creative community, aligning with the hotel's commitment to conscious hospitality. She believes that “hotels no longer serve the sole function of a place to sleep; they serve as access points to the location, functioning as hosts, guides, and curators of experiences.” The narrative of interiors matters more than ever before.

Emphasising that “meaningful connections are forged through active engagement,” Philippa believes that “supporting local communities is crucial for the future of hospitality, and art is an excellent way to achieve that.” While some elements at MM:NT will be standardised globally, the art provides a unique opportunity to immerse guests in the distinctive character and stories of the area. Their approach commits to collaborating with local artists annually, infusing the space with the distinct vibe of each location. It's not merely about decoration; it's a platform to share these stories and create authentic experiences for their guests.

For emerging artists, interacting with clients and collectors is a valuable opportunity to gain insight into commercial appetites. London-based artist Kristina Chan has been exhibiting in commercial galleries since 2016 and started leasing her work simultaneously last year. She says “It allows you to circulate artworks no longer on tour or larger pieces that don't always have the venue or opportunity to be shown. It's a great way to introduce your work to a new and wider audience and allows it to be seen in various settings and across industries.”

Leasing art diverges from the traditional artist career trajectory and is a new process for many artists, such as Yi Ling Lai, who reflects: “I wasn't entirely sure when deciding to engage in art leasing initially, as I had not experienced this approach before.” Ling, who graduated in 2021, adds: “While the benefits I currently derive aren't enough to sustain my livelihood, it's a new way to generate continuous income.” Income security from leasing enables artists to reinvest in creating new works to evolve and establish their practice, crucial for those the early stages of their careers. Last year, we paid over £2.3 million to artists and makers, underlining the crucial role of innovative approaches like leasing in sustaining the arts ecosystem.

Shifting from the individual perspective to the wider cultural sphere, we reflect on evolving motivations for creation and collection, including businesses as active community participants. Art, viewed through the lens of social impact, challenges the notion of value solely from possession, expanding the concept of investing in art beyond ownership to cultivate a broader legacy. Art leasing emerges as a contemporary and inclusive cultural investment, supporting a sustainable creative economy. It represents an outward-looking cultural initiative, providing ongoing support for artists in early career stages and contributing to vibrant communities, creative spaces, and enriching local cultural landscapes.


Explore other articles from Artiq Annual Volume 2 or read the full annual online here.