Two large Social Impact Bonds launched in Finland
Social Impact Bonds
The Social Impact Bond (SIB) is a form of impact investing. In an SIB, institutional and private investors fund services that promote well-being and assume the risks associated with the provision of these services. Projects are given precise, measurable targets, which reflect the desired increase in well-being. The public sector only pays for results that are in line with the set targets. (Source: Sitra)
An SIB agreement is a tool for systemic change. The public sector can use this tool to develop its procurement procedures, moving away from simply purchasing goods and services towards the acquisition of results and impact. Each year, central government and local authorities in Finland make procurements valued at approximately 35 billion euros, so achieving an impact also means the more profitable use of billions of euros of tax revenue. (Source: Sitra)
Social Impact Bonds encourage targeted investments in well-being. Agreements are drafted so that all parties – the public sector, investors and service providers (including Social enterprises) – benefit. They are real win-win-win deals.
2 big SIBS launched
Epiqus Työhyvinvointi I (“Tyhy-SIB”) is a Social Impact Bond (SIB) that provides occupational wellness and preventive occupational healthcare services for public-sector employees in Finland. It is commissioned by several municipalities. Impact is measured as the reduction in the number of of sick-leave days compared to historical baseline-data times the cost of a sick-leave day. Epiqus Työhyvinvointi I is the first SIB in the Nordic countries, and a qualifying social entrepreneurship fund under the EuSEF regulations. (Source: Epiqus)
Epiqus Kotouttaminen I (“Koto-SIB”) is a SIB that provides fast-track integration training and employment for immigrants seeking international protection in Finland. It is commissioned by the Ministry of Economic Affairs and the Employment. Impact evaluation is conducted as a Randomized Control Trial and measured through differences in tax collections and unemployment benefit payments between control and target groups. Epiqus Kotouttaminen I is the largest SIB in Europe, and a qualifying social entrepreneurship fund under the EuSEF regulations. (Source: Epiqus)
In addition to the two actively investing SIBs (described above), a third SIB focussed on child welfare and youth social exclusion has been launched. This “Lapsi-SIB” (“Children SIB”) has been commissioned by KL-Kuntahankinnat through a framework agreement benefiting several Finnish municipalities. (Source. Epiqus)
Other SIBS are on their way.