Impact investing helps promote well-being effectively and in a resource-wise way. It is a means of channelling private equity to projects whose aim is to achieve positive, measurable social benefit.
The project has ended at Sitra
Ministry of Economic Affairs and Employment takes over impact investing development work from SitraPublished November 21, 2019
Finland’s first SIB project shown to strengthen work disability management – goals partly reachedPublished September 20, 2019
Ecosystems for Wellbeing: Social Outcomes Contracting Platform
Formin: UN Social Impact Investing Initiative opens new office in HelsinkiPublished August 12, 2019
WCEF 2019 side session: Can outcomes-based contracting add value to circular economy?
Let the implementation of the Employment SIB begin! Five key phases of project preparationPublished April 4, 2019
National Impact Investing Advisory Board: Finland needs an outcomes fundPublished November 13, 2018
Sir Ronald Cohen’s advice to investors: advance gradually in impact investmentPublished October 29, 2018
WHAT IS IT ABOUT?
(The project has ended at Sitra. The Centre of Expertise for Impact Investing at the Ministry of Economic Affairs and Employment will carry on with the development work.)
Impact investing is a means of enhancing profitable co-operation between the private, public and third sectors by preventing and solving various well-being and environmental problems. Only approximately a tenth of all social welfare and healthcare funds are channelled toward preventive measures, even though these would be far more economical over the long term than solving problems. Hip fractures and type 2 diabetes are examples of medical conditions that cause significant problems for people and are usually preventable. Impact investing offers a way to make carefully planned, long-term, front-loaded investments.
What do we do?
The goal of Sitra’s Impact Investing team is to import this new model to Finland: to build the necessary ecosystem for it, encourage various stakeholders – the public sector, service providers and investors – to join and test the effectiveness of the model in Finnish society.
In the current economic situation, central government and local and regional authorities need new tools for promoting and financing well-being. An increasing number of investors want more than just returns on their investments – they want to promote the common good. There are also companies and organisations that have innovative solutions for promoting well-being and a desire to establish the effectiveness of their operations. Impact investing brings these companies and organisations together in a way that benefits everyone.
Where are we now?
For the time being, a total of six social impact bonds and one environmental impact bond (EIB) are up and running or under construction in Finland. There is, gratifyingly, a great deal of interest in these agreements from the public sector and among companies, organisations and investors.