Global Context; Local Solutions:Innovation

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Global Context Local SolutionsInnovation
Investment

• Sandy Blackburn-Wright
• April 2014

www.impactstrategist.com sandy_at_impactstrategist.co
m
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Global Issues are Driving Change
Need to boost productivity and innovation

Ageing and growing population
Growing gaps between sub-groups and communities
Australia
Escalating demand for services
Environment vulnerable to climate change
Economy in transition with reduced tax base
Our Future World Global megatrends that will
change the way we live, CSIRO, 2012 Australia to
2050, third Australian intergenerational report,
Australian Treasury, January, 2010 et al
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Funding for Services Faces Challenges

• By 2025, public service expenditure is forecast
  to be US419bn, or 24 of GDP
• Projected demand on current trajectory is an
  additional 54 billion per annum in 2025 (or 3
  of GDP
• Ageing population and healthcare are main drivers
  

Source Accenture Oxford Economics http//www.ac
centure.com/au-en/company/newsroom-australia/Pages
/future-demand-public-service.aspx
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Payment by Outcomes and Social Impact Investment
Initiatives being lead by State Governments,
particularly Queensland, ACT and NSW

• Focus on outcomes-based contracting arrangements
• Risk adjusted return to providers of services
• Co-definition of the desired outcomes and social
  innovation to produce service delivery models
• Focus on prevention and cost savings over time
• Requires open data arrangements and detailed
  measurement
• May require capital raising and risk sharing
  structures

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Traditional investment vehicles diversification

Calvert Foundation community investment notes
GS Social Impact Fund
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New Instruments - eg Social Impact Bonds
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There is Growing Global Momentum
Source www.businessweek.com, 6 June 2013 See
also https//www.gov.uk/government/uploads/system/
uploads/attachment_data/file/225547/G8_Social_Impa
ct_Investment_Forum_-_Outputs_and_Agreed_Actions.p
df
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Global Institutions Driving Change
International Impact Investing Taskforce
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Potential Size of the Market over 10 years
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New Reports to Support Investment

• Impact Australia Report, 2013
• Impact Investments Perspectives for Australian
  Superannuation Funds
• Impact Investments Perspectives for Australia
  Charitable Trusts and Foundations

Available to download on www.impactinvestingaustra
lia.com
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Role of Philanthropist and Foundations

• Making grants as a Social Venture Capital
• Reducing risk for hesitant mainstream investors
  through leveraging grants
• Funding the establishment of a social risk rating
  framework to stimulate institutional investment
• Funding intermediation and investment readiness
  activities
• Unlocking corpus to impact investing

Primary Catalyst Role