Message from Sir Ronald Cohen
Welcome to the first edition of the quarterly GSG NEWS. At the GSG, our mission is to bring together leading impact practitioners from around the world as National Advisory Boards (NABs) to drive a global impact investment movement. This newsletter will help to connect our 16 NABs across 16 countries & European Union (and growing!) with updates, trends, sector analysis and events across the network to help us reach Tipping Point by 2020.You can read the news from our NABs below, along with links to original stories, which we encourage you to share far and wide across your networks. We started the quarter with a tremendous GSG Impact Summit 2017 in Chicago, USA, and ended with an Asia- Pacific Declaration on Social Enterprise and Impact Investment in Christchurch, New Zealand at the Social Enterprise World Forum.
The Impact Investment sector received positive attention this quarter: President Emmanuel Macron in France announced a French Social Business Act in 2018. India launched McKinsey’s extensive study of Impact Investment in India. This showed USD-denominated impact returns to be 11% across ~500 transaction and ~50 exits. In the UK, the Ministry of Justice released the final results of the world’s first Social Impact Bond, at Peterborough Prison, demonstrating a 9% reduction in reoffending, and paying out a 3.1 percent per annum return to investors, and the UK NAB launched an excellent report, entitled “The Rise of Impact”, setting out important policy recommendations, which will interest you all. . So, exciting news rolled in from manydirections.
We have recently implemented a number of new initiatives This quarter, we launched three of our six working groups: Impact Wholesalers, R&D-based Impact Enterprises, and Deepening & Widening the Market. We have also been working hard to support the establishment of Social Finance India as part of our efforts to launch a significant India Education Outcomes Fund. This, along with our 2018 Summit in India, will bring exciting new developments to the subcontinent!
Finally, I am delighted to announce that Krisztina Tora has picked up the baton from Sebastian Welisiejko as our new Director of Market Development. You will be hearing from her quite soon. Please do share with us developments from your part of the world.
Do Good, Do Well!
- GSG Impact Summit: MacArthur Foundation, US Impact Investing Alliance and GSG successfully hosted the third GSG Impact Summit from 9-12 July, 2017 in Chicago with 560 delegates from 43 countriesGSG Impact Summit: MacArthur Foundation, US Impact Investing Alliance and GSG successfully hosted the third GSG Impact Summit from 9-12 July, 2017 in Chicago with 560 delegates from 43 countries
- MnM Research on Market Size: On GSG request, marketsandmarkets.com sized the Global Impact Investing market at $150 billion currently growing to $300 billion by 2020
- Research with IDFC Bank: GSG’s short research with IDFC Bank on job creation in India found that Impact Enterprises create 10-14X more jobs than Business Enterprises; 3-4x more even if we exclude sectors like Sanitation & Skills
- Asia-Pacific Coalition: GSG joined an international coalition with UNESCAP, SEWF and BC on Impact Investment and Social Entrepreneurship in Asia-Pacific
- First SIB in Argentina: The City of Buenos Aires launched Argentina’s first SIB on employability of vulnerable youth on 10 June
- ESG Advocacy Takes Off: The Legal team from the NAB is working with Argentina Financial Regulator (CNV), to incorporate ESG considerations in norms governing financial institutions
- NAB adopts GSG 2020 Agenda: The NAB will work on 6 key priority areas aligned with GSG mandate and Tipping Point 2020: Impact Investment market sizing in Argentina and Uruguay; Capacity building and education of key market players; Mapping of impact investment demand sector; Communication and advocacy; Legal and regulatory framework; Potential for the creation of a Fund of Funds for Impact Investment
- Brazil NAB & Government collaborate on National Strategy: The Ministry of Industry and Commerce, in collaboration with the Brazil NAB are building a National Strategy for Impact Investing to be officially launched through a Presidential Decree in December 2017
- Successful Fund Raising: Mexican NAB will receive grants from Ford Foundation and Banamex (National Bank) for research and a high-level event on the Impact Investment eco-system in Mexico to be officially presented to all strategic actors in the country
- New Report on Instruments: The Global Impact Investing Network and Kresge Foundation partnered on a new report: “Scaling the Use of Guarantees in U.S. Community Investing”
- New Report on Intermediaries: With their new report, “Insights from Impact Advisors & Consultants”, Toniic captures the experience and learning of experienced impact intermediaries as they look to engage asset owners and managers in their 100% Impact Network
- #ShareYourData Project Launch: Jean Case issued a call to the field to #ShareYourData and populate a newly launched Impact Investing network map which documents the publicly available transactions
- GSG presents at SOCAP: Tracy Palandjian (US NAB), Fran Seagull (US NAB), Rodrigo Villar (Mexico NAB), Laurie Spengler (UK NAB) and Kartik Desai (India NAB) showcase GSG at SOCAP 17
- Peru accelerates NAB development: In Peru, leaders of the impact investing sector have hosted a third event in September to promote the topic among key stakeholders. They are also monitoring the progress of pilot initiatives and will be working on a report on the impact investing ecosystem in the country
REST OF THE REGION
- New Expert Group submits report: The High-Level Expert Group on Sustainable Finance established by the European Commission has published its first report setting out concrete steps to create a financial system that supports sustainable investments
- Europe’s biggest SIB launched: The Ministry of Economic Affairs and Employment launched the biggest SIB in Europe for fast employment and integration of refugees (Koto-SIB) with current fund size of EUR 13.5 million and target of EUR 17 million
- Helping the Region: Sitra organized a workshop in terms of impact investing and circular economy for Slovenian Government and private sector
- SIB, DIB and now, an EIB: The Ministry of Environment, The Ministry of Agriculture and Sitra decided to start a process, which aims to develop the first Environmental Impact Bond in Finland, possibly Europe
- Mobilizing SIB Investors: Sitra organized an event for SIB investors with Epiqus Ltd and FIM on 20 September 2017
- An Alpine Forum: The First European AlpSIB Forum took place to inform on the Social Impact Bonds (SIB) in the alpine region. Two members of the NAB were invited to intervene during the discussions
- French Government’s New Moves: President Emmanuel Macron appointed Christophe Itier as High Commissioner to Social and Solidarity Economy (SSE) and Social Innovation and has already announced a French Social Business Act in 2018
- New Position Paper: The Italian National Advisory Board and Social Impact Agenda per l’Italia published the position paper on Impact Investing and welfare policies, authored by Giulio Pasi calling for new models to address social needs
- Three new SIBs launched: Portugal launched 3 new SIBs mobilizing 1.6 million EUR with Calouste Gulbenkein Foundation, Bank Montepio, Deloitte and a group of corporations as the lead investors
- Official Results for world’s first SIB: Independent evaluation for Petersborough SIB, world’s first social impact bond designed to reduce re-offending among prisoners being released from Peterborough prison, determined 9% reduction in recidivism and a resultant >3% annual return for its 17 investors
- Peru accelerates NAB development: UK Impact Investment Report Launch: The UK NAB will launched its Report “The Rise of Impact: Five Steps towards an Inclusive and Sustainable Economy” on 16 October 2017
- Central and Eastern European NAB catalyse ecosystem development: Members of the Social Investment Task Force in the Central and Eastern European region met for the third time to discuss progress made on building an impact investing ecosystem through the development of a first time sector report highlighting regional investment assets, new transactions, policies and instruments
- South African NAB efforts underway: South African impact investment leaders meet to discuss the national impact investment landscape and building a NAB
REST OF THE REGION
- Australia NAB Chair honored: Rosemary Addis, AAB Chair, was invited to be the speaker for the Annual National Roadshow for “Women in Super”
- Impact Investment Roadshows: The newly created Impact Investment Forum, held its inaugural impact investing investor tours. These showcased a number of existing impact investments and key sector actors to investors across foundations, institutions and family offices
- Queensland’s third SIB: State Governments are continuing their efforts around SIBs with Queensland announcing its third SIB for the year, Youth CONNECT in July
- Review with Government: The Department of Social Services (DSS), hosted a discussion on the budget initiatives around impact investing- the SII Readiness Fund. Impact Investing Australia, as representatives of the AAB discussed its current Impact Investment Readiness Growth Grant initiative is seen as key to market development
- New Fund Launched: Australia has reported renewed new fund activity with the launch by Social Ventures Australia of its Diversified Impact Fund
- India NAB releases McKinsey Research: India NAB released its study with McKinsey & Co. covering >500 impact investment transactions during 2010-2016 and to provide the first ever benchmarks for returns and impact in India
- Indian NAB Chair honored: Geeta Goel, Chair- India NAB was featured by BusinessToday as one of the Most Powerful Women in Business in India
- Advocacy at work: Israel NAB, Social Finance Israel and the Israel Ministry of Finance have collaborated for a regulatory adjustment which will requires all institutional investors to publicly report whether their investment activities include ESG strategy or not. The new guidelines from the Director at the Department of Capital Markets, Insurance, and Savings is expected to give a fillip to ESG, SRI and Impact Investments
- New Social Business Law: Israel’s Preliminary Knesset Vote approved a new Social Business law which will create specific business sector definition for Israeli Social Businesses to maximize the benefits of Social Businesses to Society
- Advisory Group setup for Japanese Impact Wholesaler: Two NAB members were appointed to the advisory group of dormant bank account fund to do a research and make recommendations on effective usage of the fund
- New SIBs launched: Two SIBs on diabetes prevention and cancer screening started in local cities attracted a major bank, individual investors and Japan Social Impact Investment Foundation
- Successful SIB Conference: Sumitomo Mitsui Banking Corporation’s symposium on Social Impact Bonds with government officials and financial institutions attracted 300 delegates
- Bangladesh’s first Impact Fund: Build Bangladesh and UNDP’s UNSIF (United Nations SDG Impact Finance) launched Bangladesh’s first impact fund with a target size of $100 million which will focus on SDG goals in Bangladesh
REST OF THE REGION
- European NABs Catch-Up, 8 November 2017: European Union NABs will be meeting on the sidelines of EVPA conference in Oslo
- Impact Investing Forum, Japan, 19-20 February 2018: Japan NAB will host an Impact Investing Forum featuring Sir Ronald Cohen & Shuichi Ohno, Chair- Japan NAB in Tokyo
- South Korea Roadshow, 22-23 February 2018: Sir Ronald Cohen will visit Seoul, South Korea for a roadshow to review and support the development of our South Korean NAB
- GSG Impact Summit, India, October/November 2018: India will host the fourth GSG Impact Summit and will shortly announce the dates and venue.
The GSG is an independent global steering group catalyzing impact investment and entrepreneurship to benefit people and the planet. The GSG was established in August 2015 as the successor to and incorporating the work of the Social Impact Investment Taskforce established under the UK´s presidency of the G8. The GSG currently has 16 National Advisory Boards, with 16 countries plus the EU as members. Chaired by Sir Ronald Cohen, the GSG brings together leaders from the worlds of finance, business and philanthropy.