To help synthesize the many discussions during our second annual international conference on Policy Innovation in Impact Investing, we’ve pulled together some of the key conference takeaways that surfaced during the two days in Brazil. Below is a partial list of the many insights stemming from the conference, which together outline important considerations when using policy to grow impact investing. To see the full list of themes and other information on the conference, check out our Recap and Next Steps document.

1. Leverage Replicable Models

With a track record of policy design and development already available to researchers, thanks to the efforts of a number of pioneering national governments, there was significant interest from conference participants in addressing the time- and resource-intensive nature of impact investing policy by drawing on global lessons and not reinventing the wheel. This desire for shared knowledge and collaboration manifests itself in two main ways: demand for more publically available resources such as case studies and policy guides, and an appetite for coordinating with actors working across sectors or geographies. As an example of the former, the presentation on the Joint Initiative on Urban Sustainability referenced a policy and project finance “cookbook” with examples of relevant policies, financing mechanisms, and projects intended to help a broad audience learn from others’ experiences. Sustainable Returns for Pensions and Society, an industry-led initiative focusing on the integration of environmental, social and governance (ESG) considerations in pension fund management, is similarly working on a guide on responsible investment for asset owners focusing on what other countries are doing. Coordination and collaboration activities were highlighted during the Canadian Social Finance presentation on that nation’s Social Investment Task Force, which purposefully brought together a variety of stakeholders to consider a set of recommendations for impact investing policy and practice. Similarly, the Impact Investing Policy Collaborative (IIPC) is intentionally working to link researchers and policymakers from around the globe to encourage cross-border learning and sharing of best practices and lessons.

2. Determine Political Feasibility and Sustainability

Developing policies that have the support of the current government, but can also survive periods of transition, is key. Identifying and supporting ‘intrapreneurs’ within government is one tactic that might mitigate the unpredictability of political cycles. In Australia, the Department of Education Employment and Workplace Relations (DEEWR) has played the role of champion for impact investing. The Department’s leadership, creativity and advocacy have allowed Australia to make great strides. Recent developments initiated by DEEWR include a $35 million government contribution to a number of social enterprise funds, research on place-based impact investing and social impact bonds, and coordination of non-government actors. Australia’s experience contrasts with other countries, where leadership on impact investing policy is either diffuse or altogether lacking. In Brazil, for example, it is unclear what department should be engaged, creating a situation where advocacy happens on a primarily informal or arbitrary basis and is dependent on personal relationships. The development of more focused public sector roles and government departments could be an effective way to imbed and professionalize impact investing policymaking.

3. Use Independent Intermediaries to Build Infrastructure and Channel Government Investments

Maturing impact investing markets need effective mechanisms to measure impact, deploy capital, and create deal flow. Some of these needs can be met by specialized intermediaries and infrastructure that are intentionally designed and created to be political independent. While government may participate, and are often the largest investors in these entities, the intermediaries are not affected by political cycles and are likely to be more attractive to private investors. A conference presentation by Big Society Capital in the UK and Venture Capital Trust Fund in Ghana highlighted the potential for large sums of impact capital to be deployed quickly, effectively, and autonomously. Both initiatives were largely supported by initial public funding that was leveraged to attract private investors. For example, Big Society Capital has used £400m from dormant bank accounts to attract an additional investment of £200m from the UK’s four largest High Street banks The successful use of intermediaries to create the investment infrastructure for impact is also seen in the example of the US CDFI Fund. Since its creation in 1994, the Fund has awarded $1.4 billion of public funding to Community Development Financial Institutions (CDFIs) that invest directly in low-income communities. In addition the Fund uses tax credits to leverage an additional $29.5 billion in private-sector investments.