What is happening in Europe on social impact investments
The European Commission is investing in Social Impact Innovation and Investing, establishing:
- a regulatory discipline;
- a certification and accreditation system for the European social funds of venture capital
Furthermore, the aforementioned Commission has decided to set up a fund, called European Social Investment and Entrepreneurship Fund (ESIEF), with a financial allocation of EUR 90 millions, operating as a fund of funds and, therefore, allowing the capitalisation of several funds specialized in SII throughout Europe, also with the intervention of private investors,
What is happening in Italy on social impact investments
Italy also began to deal with Social Impact Investing, joining the Task Force promoted by the British Government with its own Advisory Board. In a marginal way, various foundations are also involved in it, not only banking ones. Fondazione Etica made Social Impact Investing part of its mission since 2008, even before the Human Foundation, born in 2013.
Also some banks took some steps, especially in the loan-based sector: the bank that dared the most in the social field was UBI Banca. They issued around 70 Community Social Bonds, for a countervalue of approx. EUR 800 million, allowing disbursement of more than EUR 3 million as a donation and loan allocation for approx. EUR 19.5 millions.
On the other hand, with regard to the equity-based sector, the case of Oltre Venture Capital should be highlighted, which with venture philanthropy raised over 7 million euros from private entities, then completely invested in 17 new Italian companies (health, microfinance, social housing).
However, although something has also moved in Italy, to date the planning of social policies in our country are still based on the traditional scheme according to which the State fully covers social expenditure, while private investors and entrepreneurs focus on business, and the on donations and other forms of philanthropy.