EU Webinar Series #3

Transcription

1 EU Webinar Series #3 Social Impact Bonds in the EU 5 March 2015 EVPA is kindly supported by: With the financial support of the European Union

2 GoToWebinar Tips & Tricks (1/2) Getting Started You are able to Open and Hide your Control Panel Note: the control panel will collapse automatically when not in use by a participant. To keep it open participants can click the View menu and uncheck Auto-hide Control Panel. To Join Audio: Choose Mic & Speakers to use the VoIP. If you choose Telephone, you will receive the PIN for the webinar. Dial using the information provided in the registration confirmation. If you have technical issues accessing the Webinar please call Ivelina Ivanova in the EVPA Brussels office on +32 (0) EVPA is kindly supported by: With the financial support of the European Union 2

3 GoToWebinar Tips & Tricks (2/2) Q&A Time You can address questions in written form to our panellists. Those will be directed to them and aswered during the Q&A time. Participants will be kept muted. This session is recorded. If you have a technical issue while connected to the Webinar please submit a text question or comment to the organisers using the Questions panel. EVPA is kindly supported by: With the financial support of the European Union 3

4 Welcome to EVPA s Webinar! EVPA is kindly supported by: With the financial support of the European Union 4

5 SIB Webinar e-moderators Jane Newman Social Finance Elinor de Pret EVPA EVPA is kindly supported by: With the financial support of the European Union 5

6 EU Webinar Series EVPA & Public Affairs by Elinor de Pret EVPA EVPA is kindly supported by: With the financial support of the European Union 6

7 SIB Webinar Welcome to our e-speakers! Emilie Goodall Impact+, Bridges Ventures Roger Bullen Evidence-Based Social Investments Ltd Antonio Miguel Instituto de Empreendedorismo Social Teele Raun Good Deed Foundation Camilla Backström Forum for Social Innovation Sweden EVPA is kindly supported by: With the financial support of the European Union 7

8 e-moderators e-speakers SIB Webinar Panelists Emilie Goodall Director of Projects, Impact+, Bridges Ventures Roger Bullen Chief Executive, Evidence-Based Social Investments Ltd Company Director, Roger Bullen Consultancy Ltd Antonio Miguel Teele Raun Camilla Backström Jane Newman Elinor de Pret Coordinator, Social Investment Lab, Instituto de Empreendedorismo Social (IES) (Portugal) Social Impact Bond Project Manager, Good Deed Foundation (Estonia) Senior Advisor, Impact Investing & Impact Measurement, Forum for Social Innovation Sweden International Director, Social Finance Board Member, EVPA Public Affairs Manager, EVPA EVPA is kindly supported by: With the financial support of the European Union 8

9 PART II PART I SIB Webinar Programme 1.1 Emilie Goodall A Global Snapshot 1.2 Roger Bullen The UK Commissioner Experience 1.3 Antonio Miguel SIBs in Portugal 1.4 Teele Raun SIBs in Estonia 1.5 Camilla Backström The Nordic Perspective 2.1 Jane Newman Conclusions 2.2 Q&A Session (moderated by Jane Newman and Elinor de Pret) EVPA is kindly supported by: 9 With the financial support of the European Union

10 Before we start The SIB Model by Jane Newman Social Finance Private Investors 5 1 Public Authorities 4 Intermediary 2 Service Providers 3 Independent Evaluator 1. Investment 2. Working capital 3. Social outcomes; government savings 4. Performance-based payment 5. Principal and interest EVPA is kindly supported by: With the financial support of the European Union 10

11 1.1 SIBs A Global Snapshot by Emilie Goodall Impact+, Bridges Ventures EVPA is kindly supported by: With the financial support of the European Union 11

12 Social Impact Bonds: A global snapshot Emilie Goodall, Director of Projects Impact+, Bridges Ventures 5 March 2015

13 Current SIBs in operation USA: 5 Canada: 1 UK: 29 Netherlands: 1 Belgium: 1 Germany: 1 Australia: 2

14 SIBs under development USA: c.20 Canada UK: c.60 Ireland Sweden Portugal Belgium Germany Israel Pakistan India South Korea Uganda Mexico Colombia South Africa Swaziland Mozambique Australia

15 SIBs in development in the UK, by issue Policy Issue No. operational No. in development Adoption 6 2 Family Therapy & Foster Care 3 25 Unemployment Housing & Homelessness Reoffending Health Disability 0 1 Addiction 0 2 Education 0 1 Youth 0 1 Totals 29 60

16 Three distinct SIB structures: Direct model e.g. Sweet Dreams, Saskatchewan, Canada

17 Three distinct SIB structures: Intermediated model e.g. New Horizons, UK

18 Three distinct SIB structures: Managed model e.g. Adolescent Behavioural Learning Experience, New York City, US

19 What is the value of a social impact bond? Enable outcomes payers to Focus resources on outcomes Invest in intervention and preventative services Stimulate innovation Enable service providers to Have scope to innovate Grow services Deliver better outcomes Enable investors to. Link financial returns to social outcomes Catalyse entrepreneurial solutions

20 Achieving these intended benefits may require behavioural shifts Leading to longer-term system change We say we re here to make a difference but we don t know whether we are or not. Government doesn t know whether we are or not. What s changing in practice is a cultural shift within teams. Internally, it has given the team a sharp focus on delivering more evidence-based provision [ ] We feel our more evidence-based approach has helped in winning new contracts.

21 Bridges Ventures LLP 38 Seymour Street London W1H 7BP Telephone +44 (0) Bridges Ventures LLP is authorised and regulated by the Financial Conduct Authority

22 1.2 UK Commissioner Experience by Roger Bullen Evidence-Based Social Investments Ltd EVPA is kindly supported by: With the financial support of the European Union 22

23 The Essex Social Impact Bond A Local Authority based SIB funding interventions for young people at the edge of care: The commissioner experience

24 The Essex SIB: Intensive evidence-based interventions: 2 Multi Systemic Therapy (MST) Teams Referral capacity: 380 families SIB intermediary: Social Finance LTD MST Provider: Action for Children Performance target: 110 young people diverted from care or custody Projected savings: 17.3m gross over the life of the scheme Savings: 10.3 net

25 The rationale for a SIB: Need: high numbers of children in care, high cost, poor longer term outcomes Savings: budget deficits, history of failed internal investment Risk: displacement of risk to investor System: shift towards prevention, evidence-based and solution focussed, building family strengths and resilience, reducing future dependence and demand Transformation: sustainable and outcomes driven, outcomes-led commissioning, council transformation

26 Counterfactual: Methodology: historical case review 650 cases from an appropriate referral window, at least 30 months in the past Eligibility filters: age, case type, MST exclusionary and eligibility criteria Benchmark data: establishing performance pre-mst: The number entering care The number that didn t enter care The aggregate care days spent Average length of stay in care

27 Outcome and Payment Metric: Primary outcome / triggers payment: Outcome: The reduction in aggregate care days spent as compared to the counterfactual control review Duration: To the maximum of the average length of stay as observed and set by the counterfactual control review (30 months)

28 Challenges: Complex commissioning: Current co-development model reduces competitive element, runs against procurement regulation, introduces difficulty with specification and lack of price transparency Market barriers: Narrow market for Social Investment and Finance Intermediaries (SIFIs), intervention providers with capacity to work within a SIB structure, lack of choice and competition Long development lead ins: Out of step with presenting needs and financial cycles High development and transactional costs: Legal and technical, procurement and post contract governance Commissioner capacity: Financial austerity, reduced capacity, staff turnover, changing organisational structures

29 Opportunities: New EU Procurement Directives: Innovation Partnerships, flexibilities for social care and social enterprises Financial support: Big Lottery Fund, Cabinet Office Support in UK New models: Standardisation, supporting greater ability to specify, replicate and scale Outcome pricing: Transparent and tuned to Local Government value for money principles Provider led: Investor / Provider partnerships

30 1.3 SIBs in Portugal by Antonio Miguel Social Investment Lab, IES EVPA is kindly supported by: With the financial support of the European Union 30

31 SOCIAL IMPACT BONDS IN PORTUGAL Code Academy Jr Improving educational outcomes for primary school students EVPA SIB Webinar, March 5th

32 Investment Grant CODE ACADEMY JR SIB OVERVIEW The social issue school failure The intervention model Code Academy Jr Cost and Revenue Profile Financial Structure Problem solving 125, ,000 75,000 School performance 50,000 25,000 Grant (costs) Investment (costs) Revenues 0 Custo Cost CML Max Pagamento Outcomes resultados payment 32

33 CODE ACADEMY JR SIB MAIN LESSONS PILOT PROJECTS (piloting is key to gain trust among commissioners, investors and soc orgs markets need live examples to relate to) ENGAGE WITH DIFFERENT PERCEPTIONS (crucial to map motivations and starting points in order to align interests) UNDERSTAND LOCAL CONTEXT THE DEAL IS NOT OVER ONCE THE SIB STARTS (understand what is the use that local market players see for Social Impact Bonds) (investors and commissioners are keen to visualise the learning process throughout the SIB period) 33

34 THANK YOU Q&A EVPA SIB Webinar, March 5th

35 1.4 SIBs in Estonia by Teele Raun Good Deed Foundation EVPA is kindly supported by: With the financial support of the European Union 35

36 Piloting the SIB in Estonia Challenges and insights EVPA Webinar Social Impact Bonds in the EU Ole osa muutusest

37 ESTONIAN CONTEXT PRIVATE tech start-ups 22nd out of 189 in the ease of doing business Independent since 1991 PUBLIC EU member since 2004 e-country NON-PROFIT growth until 2010 unstable funding Ole osa muutusest

38 KEY CHALLENGES UNTIL NOW 1. Committing state actors 2. Identifying potential investors Ole osa muutusest

39 CHALLENGE: Committing state actors - Government change and parliament elections - Some government agencies overwhelmed with work (e.g. due to reforms) - Tight schedules of the officials OUR APPROACH - Spokesman among government agencies e.g. Estonian Development Fund - Involving the state actors in mapping social problems - Securing support on the high official level early on Ole osa muutusest

40 CHALLENGE: Identifying potential investors - Young market and low volumes - Low awareness of CSR and sustainability among companies - Investor profile: looking for high IRR, interested in tech start-ups OUR APPROACH - Using references and one-to-one meetings - Involving spokesmen in the sector e.g. one of the biggest commercial banks in Estonia - Approaching via different actors e.g. corporations, umbrella organizations, private & corporate banking Ole osa muutusest

41 THANK YOU! Teele Raun Social Impact Bond Project Manager Heateo Sihtasutus / Good Deed Foundation teele@heategu.ee Ole osa muutusest

42 1.5 SIBs The Nordic Perspective by Camilla Backström Forum for Social Innovation Sweden EVPA is kindly supported by: With the financial support of the European Union 42

43 EVPA 5 MARCH 2015 SIBs in the Nordic Context Camilla Backström socialinnovation.se

44 Talking points A quick overview of the Nordic context SIBs in the different countries Drivers and barriers Where the discussion is at the moment

45 Nordic context Strong social contract Social democratic history Culture Silos Not yet a sense of urgency Profits from welfare services Public sector challenges

46 SIBs in the Nordics

47 Drivers and bariers

48 Needs and where the discussion is focusing at the moment Understand how SIBs fit into our legal framework Common view on how to measure impact Cross sector collaboration Welfare services and private profit

49 Nordic Model?

50 2.1 Conclusions by Jane Newman Social Finance EVPA is kindly supported by: With the financial support of the European Union 50

51 2.2 Q&A Session EVPA is kindly supported by: With the financial support of the European Union 51

52 Thank You! Don t hesitate to contact EVPA s Policy Team, should you have any follow-up question related to this webinar and / or to EVPA s activities! Dr. Lisa Hehenberger Research and Policy Director lhehenberger@evpa.eu.com Elinor de Pret Public Affairs Manager edepret@evpa.eu.com EVPA is kindly supported by: With the financial support of the European Union 52