In-depth analysis on “Social impact investment: Best practices and recommendations for the next generation”

Project description:

Social impact investment is defined as «investments made into companies, organisations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return».  In line with global trends, the interest in and the size of the SII market has been increasing in Europe in recent years.  It remains to be seen how this trend will be affected by the turbulence on the financial markets resulting from the COVID-19 pandemic. With the next MFF programming period 2021-27 and the proposals for a new ESF+, a new InvestEU Fund and a revamped Reform Support Programme, the challenge will be to further develop this investment approach in order to make the most of the synergies that can be achieved by combining the innovative potential and accountability systems of the private sector with the financial guarantees, potential to scale up and advisory capacity of the public sector. Social impact investment can help to generate the resources needed to close the investment gap, a gap that will undoubtedly increase in the wake of the COVID-19 pandemic, and deliver the innovative approaches that will be vital to a successful recovery.

Objectives of the project:

The aim of the in-depth analysis is to give the members of the Employment and Social Affairs Committee a good understanding of what social impact investment is, the potential it has in terms of crowding-in private investment and combining public and private funding in order to achieve the SDGs, implement the European Pillar of Social Rights and realise the ambitions set out in proposals such as the Just Transition Mechanism. It will give a critical assessment of key research and data published on the subject and review the findings and recommendations of relevant evaluation reports. It will look at best practice, both at Member State and international level and identify the elements that are crucial to the design of a well-functioning social impact investment strategy in the future. Finally, it will make recommendations on action to be taken at EU level.

The research team will use the following methods:

• Literature review (key method, focus on studies and evaluation reports)
• Interviews with experts
• Media analysis

Project funding: European Parliament

Project leader: Visionary Analytics

Project partners:  CASE