Social Impact Investing

SOCIAL IMPACT INVESTMENT: BUILDING THE EVIDENCE BASE
Table 4.2. List of attributes for Beneficiary Context
CHARACTERISTICS Attributes of the Characteristic Eligibility *
Population
at risk
IN
Age
Social Demographics: Family type
Other
2. Beneficiary context
Location:
Underserved
Developing
Developed
Population
not at risk
* Eligibility used in the OECD definition for the purpose of this report.
Source: OECD.
Income
OUT
4.21 In terms of populations at risk, family type, age (life cycle needs) and other social demographics
can result in social exclusion of some people. This occurs not just because of income and wealth factors,
but also due to the combination of socio-demographic risks that may result in costly social exclusion if not
managed or supported properly. Therefore, identifying whether populations are at risk of social exclusion
due to social demographics also helps determining whether the beneficiary context falls within the scope of
SII. For the purposes of the OECD definition, SII should target populations at risk.
4.22 While providing affordable housing for populations at the risk of social exclusion (or de facto
socially excluded) can have a social impact (e.g., accommodation for people that live on the streets),
affordable housing that targets well-off people may improve the living conditions of the beneficiaries but
not necessarily address social needs such as reducing homelessness figures. In London, a social impact
bond (SIB) that aims at providing accommodation for “rough sleepers” is currently in place (see Chapters
3 & 7 for further detail on SIBs) and would fit within most SII definitions. 9
4.2.3. Good\Service
4.23 The type of the specific good or service (hereafter referred to as “good”) being provided, either
pure private, pure public, or mixed, is relevant to understand whether there is a market for SII. Only the
two extremes (public and private) are provided in Table 4.3 for simplification. While on one extreme, a
good can be classified as “public”, on the other extreme it can be classified as a “private”. SII eligibility
will apply to goods within the continuum between the two boundaries as illustrated, for example, by the
dotted black lines in Figure 4.4 below.
9 . Further information on the London “rough sleepers” SIB can be found at:
https://www.london.gov.uk/priorities/housing-land/tackling-homelessness-overcrowding/roughsleeping/social-impact-bond-for-rough-sleepers
48 © OECD 2015