Impact investing is about a very simple, progressive idea: markets and money for good. Impact investing is built on the belief that financial tools can play a powerful role in solving the massive global challenges of our day, and that capital markets should work for good as well as profit. This vision is realized through investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return.
Every month, PCV will give you a roundup of what’s new in the field, what conversations are taking place, and how you can get involved. Here are some highlights from March:
Impact Investing Creates Actual, Old-Time Bipartisanship
Reps. Todd Young (R-IN) and John Delaney (D-MD) have introduced legislation in the House (H.R. 1336) that would establish a $300 million federal fund for state and local initiatives that base their payments on results. Companion legislation is expected soon in the Senate from Chairman Orrin Hatch (R-UT) with co-sponsor Sen. Michael Bennet (D-CO). Read more.
A New Twist On Social Impact Bonds
The Richmond Community Foundation, in Richmond California, has found a new way for the city to sell social impact bonds to raise money — which the community foundation can use to buy up many of the city’s 800 abandoned homes. Local workers will then rehabilitate the homes, which would then be sold to people through first-time home buyer programs. Read more.
New PRI by Gates Foundation
Gates Foundation has made its largest ever program related investment (PRI): $52 million of equity in CureVac (a biopharmaceutical company working on technology that could produce vaccines faster, cheaper and more effectively). This is a new kind of investment, and a move that has positive implications for other social enterprises looking for funding. Read more.
Impact Investing Lands A Big Fish
BlackRock — the world’s largest asset manager — is throwing its weight behind social impact investing. Deborah Winshel, former president of the Robin Hood Foundation, is joining the firm to lead the practice. Not only will BlackRock be scaling up its socially responsible investments, but it’s also joined with the National Resources Defense Council to create an index which directly excludes fossil fuel and fossil fuel exploration companies. Read more.
New Efforts To Get More Data On The Impact Investing Market
The Global Impact Investing Network (GIIN) has synthesized and published data on 300+ funds featured on its searchable fund database, ImpactBase. This report—the GIIN’s first comprehensive analysis of the data in ImpactBase—aims to highlight observable trends that will provide actionable data for impact investors. Also: our Global Learning Exchange on Social Impact Investing (GLE) and GIIN hosted a webinar on March 4, 2015, showcasing a new report from the Organization for Economic Co-operation and Development (OECD), Social Impact Investment: Building the Evidence Base. Watch the webinar.
Social Good From SXSW
In between the music and tech, you might have missed the mix of public and private stakeholders meeting to talk up social impact investing. This year’s expanded Social Good Hub and Startup Village brought government, nonprofits, foundations, and social enterprises front and center with a strong message: we can and should act on a level playing field with corporations and for-profits. Read more.