Social Impact Investing

SOCIAL IMPACT INVESTMENT: BUILDING THE EVIDENCE BASE
intermediaries. It should also be noted that, the absence of any action can also have implications for the
market.
7.6 The Impact Investing Policy Collaborative (IIPC) has developed a framework which aims to
create a guide for policy makers seeking to build the social impact investment market in their countries or
communities. This includes looking at the government’s role as a market builder, participant and steward.
The framework builds upon earlier work by the World Economic Forum (WEF, 2012) as well as upon The
London Principles 34 , a set of guidelines intended to assist governments considering impact investing as a
tool to address social objectives, developed by the IIPC in collaboration with policymakers, researchers
and other stakeholders in July 2013.
7.7 The recent Social Impact Investment Taskforce and National Advisory Board reports highlighted
actions that have been taken to date in the G7 countries and Australia. 35 Annex 7.1 summarises some of
these policy actions. Table 7.1 below attempts to provide a summary of the longer list of policy actions
outlined in Annex 7.1 within the framework of the social impact investment ecosystem discussed in
Chapter 3 (demand, supply, intermediaries and regulatory/enabling environment).
Table 7.1 Examples of Types of Policy Actions taken in G7 Countries and Australia
Supply
Demand
Tax &
Regulation
Intermediaries
Other
Social Enterprise
Development and
Investment Funds
(Australia)
Social Innovation
Forum
(Japan)
Loi n° 2014-856 :
Économie Sociale
et Solidaire
(France)
SVX trading
platform
(Ontario, Canada)
Unit Cost
Database
(UK)
Small Business
Investment
Company Impact
Investment Fund
(US)
Investment and
Contract
Readiness Fund
(UK)
Legge delega di
riforma del Terzo
Settore
(Italy)
Big Society Capital
(UK)
Community
Reinvestment Act
(US)
Source: OECD, based on National Advisory Board (NAB) reports — NAB_AUS (2014), NAB_CAN (2014), NAB_GER (2014),
NAB_FRA (2014), NAB_ITA (2014), NAB_JAP (2014), NAB_UK (2014), NAB_US (2014).
7.8 Policy actions in some of these countries have addressed regulatory issues, notably in terms of
setting up legal structures to accommodate SII-specific types of market actors. Also, several policy
interventions have sought to enhance SII supply. Some governments have provided support through tax
credits (and tax-advantaged funds), guarantees or subsidies, established and co-invested in SII funds. Other
governments have focused on developing the social impact investment market infrastructure through the
creation of intermediaries such as SII wholesale banks, exchanges (or trading platforms) and other
channels to facilitate the links between supply and demand for SII (investors and delivery organisations).
Additionally some have sought to stimulate SII demand by providing support to delivery
organisations/investees through technical assistance or by encouraging procurement.
34. http://iipcollaborative.org/london-principles/
35. For further details on these policy actions see: http://www.socialimpactinvestment.org/
© OECD 2015 113