OECD SOCIAL IMPACT
INVESTMENT PROJECT:
FROM PHASE I TO II
Social Impact Investment Taskforce Plenary
London, U.K.
9 July 2015
Karen E. Wilson
Statistics and Development Finance Division
Development Co-operation Directorate, OECD
• Work commissioned at G8 Social Impact Investment Summit in London in June 2013
– Support from representative organisations of the Taskforce (Canada, Germany, UK)
– Presentations of ongoing work at SIITF meetings (2013-2014)
• OECD Social Impact Investment expert meetings
– Discuss existing data sources and processes to move towards comparable int’l data
– March 2014 (Paris) and June 2014 (London)
• Integrating SII work across the OECD
– Presentations in committees (34 member countries + observers) + OECD Forum 2015
– Strategic cross-OECD initiatives: NAEC, Inclusive Growth + G7/G20 initiatives
– Linking to work across OECD Directorates
• Phase I Report
– Preliminary version published in February 2015
– Reach to OECD and non-OECD countries + SII practitioners
2
OECD Social Impact Investment Work:PHASE I
3
Social Impact Investment:
Building the Evidence Base
Key Chapters of OECD Report:
Overview on Social Impact Investment
Social Impact Investment Framework
Characteristics and Attributes of Social Impact Investment
Context Setting: Differences in social needs and service delivery across selected countries
Social Impact Investment Market Data: Initial Findings
Policy Actions and Implications
• Expanded set of countries
– New members of International Steering Group
– Other OECD and non-OECD countries
• Case studies
– Developed and developing countries
– Variety of sectors/social need areas
– Mix of SII financing instruments
• SII workshops to exchange experiences on specific topics
– Instruments, social needs/sectors, etc.
• Expert meetings (international data collection and indicators)
– July 2015 (London)
– Jan/Feb 2016 (Paris)
– July 2016 (following ISG plenary)
– Jan/Feb 2017 (Paris)
• Phase II report
– Potentially to launch in June 2017 at GSG plenary
4
OECD Social Impact Investment Work:PHASE II
Health Education Housing Agriculture Environment Employment Other
Africa:-Kenya-Nigeria-South Africa
X X X X
Asia/Pacific:- Australia- China- India- Japan
X X X X X
Europe/MENA:- France- Germany- Israel- Italy- Portugal- UK
X X X
Latin America:- Brazil- Columbia- Mexico
X X X X
North America:- Canada- US
X X X
5
Possible Countries and Sectors for
Case Studies (for discussion)
• Measurement:
– Measure SII in the framework of private sector investment in the new SDGs.
– Continue to convene international discussions on SII data collection and indicators.
• Evidence base:
– Provide a more comprehensible and comparable view of SII across countries.
– Increase understanding about social impact investment in the context of the broader financial markets in developed and developing countries.
• Practice sharing:
– Further knowledge of social impact investment instruments and their applicability in a variety of sectors and across different country settings through the development of detailed case studies and workshops.
• Policy:
– Identify, monitor and assess policy actions taken to further the SII market.
– Platform for discussion with policy makers
6
Objectives of Phase II
Framing within the new Sustainable
Development Goals
• The SDGs will be adopted in September 2015 at the UN meetings in New York
– Implications for developed and developing countries.
• The Third International Conference on
Financing for Development will take place in
Addis Ababa, Ethiopia in July
– The FfD conference aims to build support
for the implementation of the post-2015
development goals.
– To achieve the SDG targets, the private
sector will need to be an active partner.
The new SDGs will integrate social, environmental
and economic goals into an universal agenda.
The OECD is actively involved in the FfD and SDG discussions
8
Selected Sustainable Development Goals of
relevance for Social Impact Investing
Source: Zero draft of the outcome document for the UN Summit to adopt the post-2015 Development Agenda
Goal 2:
End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Goal 8:
Promote sustained, inclusive and sustainable economic
growth, full and productive employment and
decent work for all
Goal 7:
Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 11:
Make cities and human settlements inclusive, safe,
resilient and sustainable
Goal 4:
Ensure inclusive and equitable quality education and promote
lifelong learningopportunities for all
Goal 3:
Ensure healthy lives and promote well-being for all
at all ages
9
SDG 3: Ensure healthy lives and promote well-being
for all at all ages
Health:
$51-80B*
Reduce global maternal mortality ratio to less than 70 per 100 000 live birth
Maternal death per
100 000 birth
(UNSD, OECD)
Reduce by one third premature mortality from non-communicable
diseases
Preventable mortality from non-communicable
diseases (OECD)
Subjective well-being (OECD)
Achieve universal health coverage
Public and private health care coverage (share of
population) (OECD)
Coverage of tracer interventions for prevention and
treatment services (UNSD)
Notes: -Estimates for developing countries only, from UNSDSN (2015): Financing Sustainable Development: Implementing the SDGs through Effective Investment Strategies and Partnerships for developing countries only. - Indicators from UNSD (2015): First proposed priority indicator list and OECD (2015) Supporting the implementation of the post-2015 agenda.
10
SDG 4: Ensure inclusive and equitable quality
education and promote lifelong learning opportunities
for all
Education:
$38B*
Free equitable and quality primary and
secondary education for all
Share of children achieving minimum proficiency in reading,
mathematics and science at the end of lower secondary education (PISA
based) (OECD)
Completion rate
for secondary education (OECD)
Equal access for women and men to
affordable and quality tertiary education
Graduation rates at upper and tertiary
level (OECD)
Enrolment ratios by level and type
of education (UNSD)
Access to early childhood
development, care and pre-preliminary
education
Percentage of children under 5 years of age who are developmentally on track in health, learning and psychological well-
being (UNSD)
Enrolment rate at age 2 and
below, at age 3 and at age 4
(OECD)
Notes: -Estimates , for developing countries only, from UNSDSN (2015): Financing Sustainable Development: Implementing the SDGs through Effective Investment Strategies and Partnerships for developing countries only. - Indicators from UNSD (2015): First proposed priority indicator list and OECD (2015) Supporting the implementation of the post-2015 agenda.
11
SDG 4: Mean score of PISA performance (2012)
Source: PISA 2012
0
100
200
300
400
500
600
Me
an
sc
ore
PISA performance in reading, mathematics and science in 2012
Reading
Maths
Science
12
SDG 8: Promote sustained, inclusive and sustainable
economic growth, full and productive employment
and decent work for all
Employment:
no data available *
Reduce the proportion of youth not in employment, education or
training
Youth not in education,
employment or training (UNSD,
OECD)
Promote sustainable tourism that creates jobs and promotes local
culture and products
Sustainable tourism as a
percentage of GDP
Expand access to banking, insurance and financial services for all
Number of commercial bank
branches and ATMs per 100 000 adults
(UNSD)
Note:- Indicators from UNSD (2015): First proposed priority indicator list and OECD (2015) Supporting the implementation of the post-2015 agenda.
13
Youth not in education, employment or training
(NEET)
Source: OECD Employment Outlook 2014
0
10
20
30
40
50
60
Pe
rce
nta
ge
of
the t
ota
l la
bo
ur
forc
e in
ea
ch
ag
e g
rou
p
Unemployed rates 15 to 24 year olds in 2013
• Transition Phase (current):– Concept note on the role of SII in development finance
• Engaging in FfD and SDG discussions
• Drafting chapter on SII for DCR
– Scoping of initial 10 case studies • Developed and developing countries
• Phase II – Prepare and discuss detailed Phase II proposal with SIITF
and OECD committees, member countries and others.
– Secure commitments for Phase II work (by September 2015)
14
Next Steps
Social Impact Investment: Building the Evidence Base
February 2015: http://www.oecd.org/sti/ind/social-impact-investment.htm
For further information see July 2014 publication:
http://www.oecd-ilibrary.org/science-and-technology/new-investment-approaches-for-addressing-social-and-
economic-challenges_5jz2bz8g00jj-en
For further questions contact:
1) End poverty in all its forms everywhere
2) End hunger, achieve food security and improved nutrition, and promote sustainable agriculture
3) Ensure healthy lives and promote wellbeing for all at all ages
4) Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5) Achieve gender equality and empower all women and girls
6) Ensure availability and sustainable management of water and sanitation for all
7) Ensure access to affordable, reliable, sustainable and modern energy for all
8) Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all
9) Build resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation
10) Reduce inequality within and among countries
11) Make cities and human settlements inclusive, safe, resilient and sustainable
12) Ensure sustainable consumption and production patterns
13) Take urgent action to combat climate change and its impacts 14) Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15) Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification and halt and reverse land degradation, and halt biodiversity loss
16) Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17) Strengthen the means of implementation and revitalise the global partnership for sustainable development
16
17 Proposed SDGs
