Global Context; Local Solutions: Innovation & Investment Sandy Blackburn-Wright April

Global Issues are Driving Change Our Future World: Global megatrends that will change the way we live, CSIRO, 2012; Australia to 2050, third Australian intergenerational report, Australian Treasury, January, 2010 et al Australia Ageing and growing population Escalating demand for services Economy in transition with reduced tax base Environment vulnerable to climate change Growing gaps between sub-groups and communities Need to boost productivity and innovation

Funding for Services Faces Challenges Source: Accenture & Oxford Economics service.aspx ❏ By 2025, public service expenditure is forecast to be US$419bn, or 24% of GDP ❏ Projected demand on current trajectory is an additional $54 billion per annum in 2025 (or 3% of GDP ❏ Ageing population and healthcare are main drivers

Payment by Outcomes and Social Impact Investment Initiatives being lead by State Governments, particularly Queensland, ACT and NSW ❏ Focus on outcomes-based contracting arrangements ❏ Risk adjusted return to providers of services ❏ Co-definition of the desired outcomes and social innovation to produce service delivery models ❏ Focus on prevention and cost savings over time ❏ Requires open data arrangements and detailed measurement ❏ May require capital raising and risk sharing structures

Traditional investment vehicles + diversification Calvert Foundation – community investment notes GS Social Impact Fund

New Instruments - eg Social Impact Bonds

There is Growing Global Momentum Source: June 2013 See also

Global Institutions Driving Change International Impact Investing Taskforce

Potential Size of the Market over 10 years

❏ Impact Australia Report, 2013 ❏ Impact Investments: Perspectives for Australian Superannuation Funds ❏ Impact Investments: Perspectives for Australia Charitable Trusts and Foundations New Reports to Support Investment Available to download on

Role of Philanthropist and Foundations ❏ Making grants as a Social Venture Capital ❏ Reducing risk for hesitant mainstream investors through leveraging grants ❏ Funding the establishment of a social risk rating framework to stimulate institutional investment ❏ Funding intermediation and investment readiness activities ❏ Unlocking corpus to impact investing Primary Catalyst Role