global context; local solutions: innovation & investment sandy blackburn-wright april 2014 ...
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Global Context; Local Solutions:Innovation & Investment Sandy Blackburn-WrightApril 2014
Global Issues are Driving Change
Our Future World: Global megatrends that will change the way we live, CSIRO, 2012; Australia to 2050, third Australian intergenerational report, Australian Treasury, January, 2010 et al
Australia
Ageing and growing population
Escalating demand for services
Economy in transition with reduced tax base
Environment vulnerable to climate
change
Growing gaps between sub-groups and communities
Need to boost productivity and
innovation
Funding for Services Faces Challenges
Source: Accenture & Oxford Economicshttp://www.accenture.com/au-en/company/newsroom-australia/Pages/future-demand-public-service.aspx
❏By 2025, public service expenditure is forecast to be US$419bn, or 24% of GDP
❏Projected demand on current trajectory is an additional $54 billion per annum in 2025 (or 3% of GDP
❏Ageing population and healthcare are main drivers
Payment by Outcomes and Social Impact Investment
Initiatives being lead by State
Governments, particularly
Queensland, ACT and NSW
❏Focus on outcomes-based contracting arrangements
❏Risk adjusted return to providers of services❏Co-definition of the desired outcomes and
social innovation to produce service delivery models
❏Focus on prevention and cost savings over time
❏Requires open data arrangements and detailed measurement
❏May require capital raising and risk sharing structures
Traditional investment vehicles + diversification
Calvert Foundation – community investment notes
GS Social Impact Fund
There is Growing Global Momentum
Source: www.businessweek.com, 6 June 2013See also https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/225547/G8_Social_Impact_Investment_Forum_-_Outputs_and_Agreed_Actions.pdf
❏ Impact Australia Report, 2013
❏ Impact Investments: Perspectives for Australian Superannuation Funds
❏ Impact Investments: Perspectives for Australia Charitable Trusts and Foundations
New Reports to Support Investment
Available to download on www.impactinvestingaustralia.com
Role of Philanthropist and Foundations
❏ Making grants as a Social Venture Capital❏ Reducing risk for hesitant mainstream
investors through leveraging grants❏ Funding the establishment of a social risk
rating framework to stimulate institutional investment
❏ Funding intermediation and investment readiness activities
❏ Unlocking corpus to impact investing
Primary Catalyst
Role