and require impact measurement. SOCs such as the Social Impact Bond (SIB) have received attention. Here, a public administration commits to pay some investors their initial capital — plus a return based on the results/outcomes delivered by a social provider versus some pre-agreed goals. SIBs are a tool to align the interests of public administrations, service providers and investors towards preventive and innovative solutions for the “wicked” problems. SIBs can also help to achieve measurable social impact. There are currently several initiatives regarding implementation of SIBs in Spain, with the Barcelona council and the government of Catalunya, the Madrid council, the government of the Basque country, and the government of Navarre. 4.1 Give greater visibility to PbRs that are being implemented in Spain and abroad to raise awareness, and train relevant actors 4.2 Train public administrations opportunities offered by PbRs
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4.3 Experiment with public policies that promote payment-by-results contracts and evidence-based policies, in order to introduce these mechanisms in the new Public Procurement Law 4.4 Establish a line of financing from the central administration, along with philanthropic resources, which could be blended in to pay for feasibility studies and PbRs design 4.5 Promote the creation of outcomes funds from public administrations to co-finance and expedite implementation of PbRs for innovative projects addressing problems 4.6 Create a pilot for a PbR scheme in which an alliance of foundations acts as the “outcomes payer” 4.7 Establish PbR-dedicated impact investment funds. 5. Create knowledge and market infrastructure to build an impact economy Market infrastructure is pivotal for the development of new markets. Other countries’ experience demonstrates the importance of having solid and diverse financial and nonfinancial intermediaries, as well as raising awareness, and training different groups.
financing needs of social enterprises at each stage of development, or to collect both the social and financial track record of Spanish social enterprises 5.2 Emphasise communication regarding impact investing to increase visibility of domestic and international success stories 5.3 Training on the potential of impact investing for relevant actors in the social, public and private sectors 5.4 Promote the measurement and management of social impact through commonly accepted methodologies and tools 5.5 Create an evidence-based interventions database, including information on PbRs, to share knowledge among public administrations at all levels 5.6 Create a unit costs database to allow measuring and comparing of impact from specific social interventions 5.7 Training and awareness-raising for the new generations to increase perception and understanding of companies as key actors in solving social and environmental challenges. Spain NAB’s agenda aims at advancing the 2030 Agenda in Spain, leveraging on international experiences and best-practice to mobilise public and private capital to solve the most urgent challenges facing us. Spain NAB will be working on several projects. The main one is the taskforce on SOCs and Outcomes Funds launched in alliance with Fundación COTEC on an event organised by the Madrid council and Open Value Foundation on January 14. Through September 2020, the taskforce will work with commissioners, social purpose organisations and intermediaries to explore international and domestic initiatives and experiences, and identify barriers and best practices, including the creation of an outcomes funds. Through this taskforce, Spain NAB will produce a toolkit for main users of SOCs (commissioners and social purpose organisations). The taskforce will work on the existing legal and regulatory barriers, which will result in a proposal for a regulatory sandbox, which could allow interested parties to experience with SOCs in a safe and friendly environment. i
ABOUT THE AUTHORS Laura Blanco is director of knowledge and outreach for Spain NAB, the Spanish National Advisory Board for Impact Investment. Since 2017, she has been studying strategies and instruments for sustainable investments, with a focus on impact measurement methodologies while working as head of research for Nakatomi Capital’s private equity group. Prior to that, Blanco was an investment manager at Baring Asset Management. She started her career in New York as an equity analyst working for UBS and Credit Suisse, earning a spot in both Institutional Investor and Latin Finance Research Olympics. In 2006, she moved to Hong Kong as a principal of fintech start-up Lusight Research to open the Asian market. She holds an MBA from NYU Stern School of Business. José Luis Ruiz de Munain is the CEO of Spain NAB and founder of its Secretariat, Foro Impacto, which successfully led the process of Spain's entry to the GSG in June 2019. He is a founding trustee of UnLtd Spain, a social entrepreneurship accelerator, and Senior Advisor of the International Venture Philanthropy Center (IVPC), a center of international excellence aiming at creating a Latin American Network of Venture Philanthropy. He has been a consultant for public, private and third sector entities, such as the IDB Lab, PwC, CECA or BBVA, and professor and lecturer in several business schools and universities. He holds a bachelor in Economics and an MBA from IE Business School.
Author: Laura Blanco
Footnotes Despite a growing interest in impact investing, Spanish actors from the public, social and financial sectors highlight lack of knowledge on the subject as a big challenge. Dedicating resources to research and training is key to providing the knowledge and tools required. Promoting a culture of impact measurement and management is imperative.
1ESADE and Foro Impacto, 2019, p 26. Hacia una Economía de Impacto: Recomendaciones para Impulsar la Inversión de Impacto en España. www. foroimpacto.es 2Maduro, Pasi, Misuraca, 2018, pp 41-45. Social Impact Investment in the EU 3ESADE and Foro Impacto, 2019, Anexo 2, p 65. La inversión de impacto en España: Intermediación de Capital. www.foroimpacto.es 4OECD DAC statistics, January 2020. Private Philanthropy for the SDGs. 5Include foundations’ PRIs and MRIs, impact investments and other non-grant activities with the main goal of promoting economic development and welfare of
5.1 Conduct studies to better understand the characteristics of the sector, for example on the 66
developing countries. 6Barómetro de las Finanzas Éticas y Solidarias, 2018.
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Author: José Luis Ruiz de Munain