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Impact Investment in the SDG ContextNovember 2018
GDP growth vs Happiness
WEF’s Inclusive Growth and Development Indicators
Sustainable Development Goals
Potentially leapfrogging approaches to economic development
▪ Regenerative approaches: Circular Economy
▪ Intentional Capital: emerging 4th sector of
Economy
▪ New targets and measurement:
TUNNELING the KUZNETS CURVE:
▪ Applying business practices and market principles to address
social needs
▪ Innovative solutions to persistent social and environmental
problems and unmet needs
▪ Filling gap between insufficient private sector profit and inability
of public sector
Source: http://www.fourthsector.net/
Emerging 4th Sector in the Economy
IMPACT INVESTMENTS –leapfrogging concept for
equal and sustainable economic growth
Impact as a component in Financial Decision Making
Revenue
Risk
Impact
Gap in effective:
✓Collaboration with Private Sector
✓ Impact Methods in Public Sector
Terms Explained
Source: http://www.fourthsector.net/
• Comprehensive Impact Measurement and Management framework
• Impact metrics set in line with a major global benchmark targets - SDGs
• Focus on understanding and enhancing impact across several areas and multiple stakeholders of various ecosystems
▪ Greenwash & Bluewash▪ Impact Default▪ Impact Depth▪ Impact at Exit
IMPACT as OBJECTIVE
from Value Alignment to Impact Objective
from Shareholder Value to Stakeholder Value
Responsible Investments Sustainable Investments
Impact Investments
Impact Investment Trends
114 Billion
Estimated value of the impact investing sector by end of 2016. Source: GIIN
Impact Investors AUM by geography, GIIN 2017 Survey
300 Billion
Global market for impact investment by 2020, estimate by GSG2016 2020
From interesting objectsin the landscape…
…to a meaningful image
When viewed from the place of Nelson Mandela‘s capture by the police
(29°28'06.1"S 30°10'15.7"E)
Be alert to different perspectives
50 columns, built 50 years after arrest
(5 August 1962)
Impact is in the eye of the beholder
Fact (x1) + Interpretations (∞) = Insights (∞)
Complexity of Impact
• Anticipate positive ‘observation effect’
• Not only measuring and reporting how much impact happens, but also explain why impact happens
• Empower to select appropriate indicators for both reporting and informed decision making for wider range of finance tools that can target development.
• Powerful tool for effective policy decisions and implementations at macro level.
• Larger «impact lense» brings to better data, reduced business risks, improved governance.
Value of Impact Measurement and Management
Impact Measurement and Management in SDG Context
• Impact metrics set in line with a major global benchmark targets - SDGs
• Focus on understanding and enhancing impact across several areas and multiple stakeholders
• Truly global benchmark for impact measurement • 17 strategic Sustainable Development Goals to
target by 2030• Each Goal has 5 to 19 indicators • In total 169 specific indicators
WHOLISTIC APPROACH IS IMPORTANT !
Recent global impact investment initiatives
Operating principles for impact management
Infusing investment
decisions with SDG impact
context
Impact management in
investment process
14
About UNSIF
Mission: Promoting Investing for SDGs
Positioning: Ecosystem-enabler & Thought-leader
10Staff Members
5 Bangkok Hub3 Country-Based2 Home-based
8Countries
Where UNSIF is operating with initiatives
and activities
7Official
Governments Endorsement
15
Impact Ecosystem & UNSIF Role
Supply Demand
Governments, Networks, Intermediaries
EnterprisesPipelines
Beneficiaries
Capital Providers
Fund Managers Innovative Finance
e.g. FinTech, Blockchain
Pipeline Developmentvia Incubator/Accelerators
National Policy Dialogue & Ecosystem Development
Investor Engagement, Education & Advocacy
Investment Facilitation
16
Initiatives Overview
Armenia
China
Bangladesh
Cambodia
India
Indonesia
Sri Lanka
Serbia
Operating
Supporting
Afghanistan
The Pacific
Scoping
Maldives
Thailand
17
Service Lines
Policy Dialogue & Ecosystem
Development
Investor Engagement Pipeline DevelopmentInnovative Finance
Policy advisory
Capacity Building for national gov.
National Advisory Board & National Action Plan
Stakeholder engagement
1. 2. 3. 4.
SDG Education
Mainstreaming impact finance via events
Leveraging financial centres in Asia
Family Offices/ Next Generation
Incubator & Accelerators
Identifying SDG-aligned investment-ready projects
Investment Facilitation
Leveraging Environment Finance
Digital Finance, incl. FinTech & Blockchaininitiatives
Social Impact Bonds; Development Impact Bonds, etc
