I invest into not-for-profits and I make money out of it some of you may be
money out of it some of you may be
money out of it some of you may be thinking this is unethical but that it
thinking this is unethical but that it
thinking this is unethical but that it goes against the principles of
goes against the principles of
goes against the principles of philanthropy and honestly I don’t blame
philanthropy and honestly I don’t blame
philanthropy and honestly I don’t blame you when I first heard about social
you when I first heard about social
you when I first heard about social investment I also had my doubts in the
investment I also had my doubts in the
investment I also had my doubts in the past I had given money to charity I had
past I had given money to charity I had
past I had given money to charity I had volunteered several times I had even
volunteered several times I had even
volunteered several times I had even helped fundraise for them so how can now
helped fundraise for them so how can now
helped fundraise for them so how can now make money out of them and more
make money out of them and more
make money out of them and more importantly why would I want to do so
importantly why would I want to do so
importantly why would I want to do so let me tell you a story every day when I
let me tell you a story every day when I
let me tell you a story every day when I go out from work I pass by a Starbucks
go out from work I pass by a Starbucks
go out from work I pass by a Starbucks and outside there’s a homeless man long
and outside there’s a homeless man long
and outside there’s a homeless man long ginger beard big smile he’s very chatty
ginger beard big smile he’s very chatty
ginger beard big smile he’s very chatty people give him change sometimes food
people give him change sometimes food
people give him change sometimes food sometimes cigarettes and he’s always
sometimes cigarettes and he’s always
sometimes cigarettes and he’s always very grateful but what makes him so
very grateful but what makes him so
very grateful but what makes him so unique if he’s always got a book in his
unique if he’s always got a book in his
unique if he’s always got a book in his lap it’s mostly adventure books I tend
lap it’s mostly adventure books I tend
lap it’s mostly adventure books I tend to think they’re his favorites and
to think they’re his favorites and
to think they’re his favorites and there’s a mix of sadness an empathy but
there’s a mix of sadness an empathy but
there’s a mix of sadness an empathy but also hope in this picture he gets enough
also hope in this picture he gets enough
also hope in this picture he gets enough coins to buy himself food he spends his
coins to buy himself food he spends his
coins to buy himself food he spends his night on a hostel whenever it’s cold
night on a hostel whenever it’s cold
night on a hostel whenever it’s cold outside but how could we make things
outside but how could we make things
outside but how could we make things better I often think to myself how could
better I often think to myself how could
better I often think to myself how could we empower him in terms of austerity
we empower him in terms of austerity
we empower him in terms of austerity with over 20 million people unemployed
with over 20 million people unemployed
with over 20 million people unemployed across Europe with youth unemployment as
across Europe with youth unemployment as
across Europe with youth unemployment as high as 40 percent in some southern
high as 40 percent in some southern
high as 40 percent in some southern European countries such as Spain with an
European countries such as Spain with an
European countries such as Spain with an increasing aging population with 27% of
increasing aging population with 27% of
increasing aging population with 27% of children at risk of poverty or social
children at risk of poverty or social
children at risk of poverty or social exclusion the welfare state is failing
exclusion the welfare state is failing
exclusion the welfare state is failing to work in the 1940s the welfare state
to work in the 1940s the welfare state
to work in the 1940s the welfare state took on the responsibility to protect
took on the responsibility to protect
took on the responsibility to protect society to build a safety net to protect
society to build a safety net to protect
society to build a safety net to protect the most vulnerable individuals and
the most vulnerable individuals and
the most vulnerable individuals and today
today
today today it’s throwing its hands up
today it’s throwing its hands up
today it’s throwing its hands up government cannot cope with the cap and
government cannot cope with the cap and
government cannot cope with the cap and provision in social services
provision in social services
provision in social services shifting demographics and changes in the
shifting demographics and changes in the
shifting demographics and changes in the global economy have left insufficient
global economy have left insufficient
global economy have left insufficient public funds to address today’s social
public funds to address today’s social
public funds to address today’s social issues and less likely the ones in the
issues and less likely the ones in the
issues and less likely the ones in the upcoming years the credential of
upcoming years the credential of
upcoming years the credential of capitalism around steadily raising the
capitalism around steadily raising the
capitalism around steadily raising the living standards of individuals is now
living standards of individuals is now
living standards of individuals is now questionable the principles of socialism
questionable the principles of socialism
questionable the principles of socialism around equal distribution of income and
around equal distribution of income and
around equal distribution of income and wealth it’s also questionable
wealth it’s also questionable
wealth it’s also questionable so forget ideology we need to stop
so forget ideology we need to stop
so forget ideology we need to stop turning to government for magical
turning to government for magical
turning to government for magical solutions instead we need to address the
solutions instead we need to address the
solutions instead we need to address the capital market and seek how money can
capital market and seek how money can
capital market and seek how money can leverage positive change so how can
leverage positive change so how can
leverage positive change so how can money from the capital markets make
money from the capital markets make
money from the capital markets make meaningful and impactful interventions
meaningful and impactful interventions
meaningful and impactful interventions or let’s put it another way how can we
or let’s put it another way how can we
or let’s put it another way how can we incorporate value into our investments
incorporate value into our investments
incorporate value into our investments in an effective way and I’m not talking
in an effective way and I’m not talking
in an effective way and I’m not talking about investing with impact because
about investing with impact because
about investing with impact because we’re all in favor of a business that
we’re all in favor of a business that
we’re all in favor of a business that creates jobs that improves lives but
creates jobs that improves lives but
creates jobs that improves lives but that’s not really dealing with the issue
that’s not really dealing with the issue
that’s not really dealing with the issue social investment supports organizations
social investment supports organizations
social investment supports organizations whose main mission needs to address that
whose main mission needs to address that
whose main mission needs to address that change to create that positive change to
change to create that positive change to
change to create that positive change to generate greater outcomes let’s say
generate greater outcomes let’s say
generate greater outcomes let’s say charity the runs hair care homes or
charity the runs hair care homes or
charity the runs hair care homes or energy community company or a charity
energy community company or a charity
energy community company or a charity supporting homeless people social
supporting homeless people social
supporting homeless people social investment is there to channel the
investment is there to channel the
investment is there to channel the necessary funds into these organizations
necessary funds into these organizations
necessary funds into these organizations so they can deliver their services and
so they can deliver their services and
so they can deliver their services and generate greater social outcomes but
generate greater social outcomes but
generate greater social outcomes but social investment also seeks for a
social investment also seeks for a
social investment also seeks for a financial return and there’s a
financial return and there’s a
financial return and there’s a preconceived idea that anything social
preconceived idea that anything social
preconceived idea that anything social does not need any accountability it’s
does not need any accountability it’s
does not need any accountability it’s social therefore it’s good philanthropy
social therefore it’s good philanthropy
social therefore it’s good philanthropy does good right but immediately for
does good right but immediately for
does good right but immediately for questions for
questions for
questions for in my head the first how do we ensure we
in my head the first how do we ensure we
in my head the first how do we ensure we are consistently achieving greater
are consistently achieving greater
are consistently achieving greater social outcomes the second how do we
social outcomes the second how do we
social outcomes the second how do we maximize the value of our intervention
maximize the value of our intervention
maximize the value of our intervention the third how does this promote greater
the third how does this promote greater
the third how does this promote greater efficiencies and the fourth how does
efficiencies and the fourth how does
efficiencies and the fourth how does this encourage social innovation the
this encourage social innovation the
this encourage social innovation the social investment is not here to
social investment is not here to
social investment is not here to substitute other programs it’s here to
substitute other programs it’s here to
substitute other programs it’s here to complement them and grants and donations
complement them and grants and donations
complement them and grants and donations have played a key role in the
have played a key role in the
have played a key role in the development of the social sector but
development of the social sector but
development of the social sector but charitable donations in government can
charitable donations in government can
charitable donations in government can only take us this far so as a social
only take us this far so as a social
only take us this far so as a social investor we request the financial return
investor we request the financial return
investor we request the financial return in order to bring back that level of
in order to bring back that level of
in order to bring back that level of accountability an interest therefore
accountability an interest therefore
accountability an interest therefore represents three things first
represents three things first
represents three things first sustainability because we invest into
sustainability because we invest into
sustainability because we invest into organizations that have sustainable
organizations that have sustainable
organizations that have sustainable business models therefore there is a
business models therefore there is a
business models therefore there is a proven evidence of demand for their
proven evidence of demand for their
proven evidence of demand for their services and products second improved
services and products second improved
services and products second improved efficiencies because in times of
efficiencies because in times of
efficiencies because in times of austerity organizations will want to
austerity organizations will want to
austerity organizations will want to reduce costs to become more productive
reduce costs to become more productive
reduce costs to become more productive and this is usually linked to innovation
and this is usually linked to innovation
and this is usually linked to innovation and third impact we want to generate
and third impact we want to generate
and third impact we want to generate greater outcomes we want to know what is
greater outcomes we want to know what is
greater outcomes we want to know what is happening with our money so how many
happening with our money so how many
happening with our money so how many homeless people have been supported into
homeless people have been supported into
homeless people have been supported into stable accommodation or how many
stable accommodation or how many
stable accommodation or how many families have now access to affordable
families have now access to affordable
families have now access to affordable clean energy and what if we went one
clean energy and what if we went one
clean energy and what if we went one step further and what if we said that
step further and what if we said that
step further and what if we said that the returns will depend on the outcomes
the returns will depend on the outcomes
the returns will depend on the outcomes achieved the greater the outcomes the
achieved the greater the outcomes the
achieved the greater the outcomes the greater the returns this is called
greater the returns this is called
greater the returns this is called payment by results and is very common in
payment by results and is very common in
payment by results and is very common in the UK let’s take an example a charity
the UK let’s take an example a charity
the UK let’s take an example a charity that works with homeless people
that works with homeless people
that works with homeless people it supports them into stable
it supports them into stable
it supports them into stable accommodation it’s
accommodation it’s
accommodation it’s helps them find the job it trains them
helps them find the job it trains them
helps them find the job it trains them to find a job and it reconnects them
to find a job and it reconnects them
to find a job and it reconnects them with their families and relatives we
with their families and relatives we
with their families and relatives we engage with a local authority which
engage with a local authority which
engage with a local authority which after a five-year valuation will repay
after a five-year valuation will repay
after a five-year valuation will repay investors based on the results achieved
investors based on the results achieved
investors based on the results achieved based on the reduced number of rough
based on the reduced number of rough
based on the reduced number of rough sleepers the number of homeless people
sleepers the number of homeless people
sleepers the number of homeless people that have been supported into stable
that have been supported into stable
that have been supported into stable accommodation and the number of homeless
accommodation and the number of homeless
accommodation and the number of homeless people that have now a part-time or a
people that have now a part-time or a
people that have now a part-time or a full-time job
full-time job
full-time job I’m men do by doing so you are aligning
I’m men do by doing so you are aligning
I’m men do by doing so you are aligning the interests of government whose
the interests of government whose
the interests of government whose desperate for the outcomes the interest
desperate for the outcomes the interest
desperate for the outcomes the interest of the social investor who seeks for
of the social investor who seeks for
of the social investor who seeks for that financial and social return the
that financial and social return the
that financial and social return the interest of the charity whose mission is
interest of the charity whose mission is
interest of the charity whose mission is to support those individuals and the
to support those individuals and the
to support those individuals and the beneficiaries themselves the homeless
beneficiaries themselves the homeless
beneficiaries themselves the homeless the rough sleepers or in my case my
the rough sleepers or in my case my
the rough sleepers or in my case my ginger beard homeless friend rather than
ginger beard homeless friend rather than
ginger beard homeless friend rather than designing an intervention to meet a need
designing an intervention to meet a need
designing an intervention to meet a need like most public interventions do we are
like most public interventions do we are
like most public interventions do we are preventing escalation of a social issue
preventing escalation of a social issue
preventing escalation of a social issue in an effective way because we are
in an effective way because we are
in an effective way because we are working with organizations that
working with organizations that
working with organizations that understand the problem and understand
understand the problem and understand
understand the problem and understand the root cause of the problem because
the root cause of the problem because
the root cause of the problem because they’re in the field and we’re paying
they’re in the field and we’re paying
they’re in the field and we’re paying for the results so social investment is
for the results so social investment is
for the results so social investment is reshaping the relationship between the
reshaping the relationship between the
reshaping the relationship between the financial gain and the common good and
financial gain and the common good and
financial gain and the common good and what’s really interesting about these
what’s really interesting about these
what’s really interesting about these organizations is that they’re determined
organizations is that they’re determined
organizations is that they’re determined and focused they believe in what they do
and focused they believe in what they do
and focused they believe in what they do and they know why they’re doing what
and they know why they’re doing what
and they know why they’re doing what they’re doing and that’s what makes them
they’re doing and that’s what makes them
they’re doing and that’s what makes them really focused and effective they really
really focused and effective they really
really focused and effective they really want to create that positive change let
want to create that positive change let
want to create that positive change let me share with you some examples so this
me share with you some examples so this
me share with you some examples so this is me say and me say is a hero rat she
is me say and me say is a hero rat she
is me say and me say is a hero rat she works for a poco a poco is a Belgian
works for a poco a poco is a Belgian
works for a poco a poco is a Belgian not-for-profit
not-for-profit
not-for-profit that trains giant African poets rats to
that trains giant African poets rats to
that trains giant African poets rats to search for landmines the founder of a
search for landmines the founder of a
search for landmines the founder of a Popo wanted to address the global mind
Popo wanted to address the global mind
Popo wanted to address the global mind problem so wires have transformed
problem so wires have transformed
problem so wires have transformed thousands of square kilometers of land
thousands of square kilometers of land
thousands of square kilometers of land into areas that nobody dares to enter in
into areas that nobody dares to enter in
into areas that nobody dares to enter in some African countries they’re up to
some African countries they’re up to
some African countries they’re up to nine mine related casualties per day a
nine mine related casualties per day a
nine mine related casualties per day a pope would trains these rats to search
pope would trains these rats to search
pope would trains these rats to search for the landmines they can search 200
for the landmines they can search 200
for the landmines they can search 200 square meters in 20 minutes it would
square meters in 20 minutes it would
square meters in 20 minutes it would take a human twenty five hours to do the
take a human twenty five hours to do the
take a human twenty five hours to do the same job in Mozambique a Popo has
same job in Mozambique a Popo has
same job in Mozambique a Popo has destroyed over 13,000 landmines and
destroyed over 13,000 landmines and
destroyed over 13,000 landmines and brought back over 1000 hectares of land
brought back over 1000 hectares of land
brought back over 1000 hectares of land into safe and productive use Mozambique
into safe and productive use Mozambique
into safe and productive use Mozambique has now been declared free of all
has now been declared free of all
has now been declared free of all landmines and no rat died let’s see
landmines and no rat died let’s see
landmines and no rat died let’s see another example this is Mark this is a
another example this is Mark this is a
another example this is Mark this is a payment by result scheme and mark is
payment by result scheme and mark is
payment by result scheme and mark is part of the teens and toddlers program
part of the teens and toddlers program
part of the teens and toddlers program in the UK one out of eight 16 to 24 year
in the UK one out of eight 16 to 24 year
in the UK one out of eight 16 to 24 year olds is neither working or training or
olds is neither working or training or
olds is neither working or training or in education teams and toddlers well we
in education teams and toddlers well we
in education teams and toddlers well we know basically the people young people
know basically the people young people
know basically the people young people with low educational attainment with low
with low educational attainment with low
with low educational attainment with low self-esteem and no role model to look up
self-esteem and no role model to look up
self-esteem and no role model to look up to is less likely to successfully
to is less likely to successfully
to is less likely to successfully transition into work training or
transition into work training or
transition into work training or education teams and toddlers is a UK
education teams and toddlers is a UK
education teams and toddlers is a UK charity that has developed a very
charity that has developed a very
charity that has developed a very successful program and it’s very simple
successful program and it’s very simple
successful program and it’s very simple what they do there is a teenager usually
what they do there is a teenager usually
what they do there is a teenager usually was disruptive behavior that gets
was disruptive behavior that gets
was disruptive behavior that gets assigned a toddler who needs extra care
assigned a toddler who needs extra care
assigned a toddler who needs extra care in nursery so this janitor suddenly
in nursery so this janitor suddenly
in nursery so this janitor suddenly becomes the toddler’s playmate and his
becomes the toddler’s playmate and his
becomes the toddler’s playmate and his role model therefore the teenager has a
role model therefore the teenager has a
role model therefore the teenager has a feeling of responsibility of belonging
feeling of responsibility of belonging
feeling of responsibility of belonging and he feels respected and it’s also a
and he feels respected and it’s also a
and he feels respected and it’s also a work placement opportunity for him
work placement opportunity for him
work placement opportunity for him results have shown
results have shown
results have shown that 97% of young people that have come
that 97% of young people that have come
that 97% of young people that have come through the teens and toddlers program
through the teens and toddlers program
through the teens and toddlers program are now either in education training or
are now either in education training or
are now either in education training or working an 88% of them feel more
working an 88% of them feel more
working an 88% of them feel more confident and these are just two
confident and these are just two
confident and these are just two examples the sector is full of really
examples the sector is full of really
examples the sector is full of really inspiring social entrepreneurs that
inspiring social entrepreneurs that
inspiring social entrepreneurs that really want to make positive change but
really want to make positive change but
really want to make positive change but in order to do so you need money you
in order to do so you need money you
in order to do so you need money you need seed capital in order to develop an
need seed capital in order to develop an
need seed capital in order to develop an idea you need an initial investment know
idea you need an initial investment know
idea you need an initial investment know to train your rats you need capital to
to train your rats you need capital to
to train your rats you need capital to roll out the teens and toddlers program
roll out the teens and toddlers program
roll out the teens and toddlers program social innovation will not happen if
social innovation will not happen if
social innovation will not happen if there’s no money to back it social
there’s no money to back it social
there’s no money to back it social entrepreneurs will not thrive if there
entrepreneurs will not thrive if there
entrepreneurs will not thrive if there is no money to back them let’s see one
is no money to back them let’s see one
is no money to back them let’s see one last example of how social investment
last example of how social investment
last example of how social investment can generate positive change
can generate positive change
can generate positive change so Harry specters is a social enterprise
so Harry specters is a social enterprise
so Harry specters is a social enterprise that employs people with autism to make
that employs people with autism to make
that employs people with autism to make chocolates during its first two years of
chocolates during its first two years of
chocolates during its first two years of operation it employed twelve people and
operation it employed twelve people and
operation it employed twelve people and provided relief to 22 carers in the UK
provided relief to 22 carers in the UK
provided relief to 22 carers in the UK unemployment amongst people with autism
unemployment amongst people with autism
unemployment amongst people with autism is over 80% so Harry specters wanted to
is over 80% so Harry specters wanted to
is over 80% so Harry specters wanted to continue to grow to support more people
continue to grow to support more people
continue to grow to support more people with autism and was looking for
with autism and was looking for
with autism and was looking for investment well this is what happened a
investment well this is what happened a
investment well this is what happened a group of social investors and individual
group of social investors and individual
group of social investors and individual investors decided to invest into a bond
investors decided to invest into a bond
investors decided to invest into a bond with an 8% coupon investors receive
with an 8% coupon investors receive
with an 8% coupon investors receive principal repayments and the interest
principal repayments and the interest
principal repayments and the interest they can choose whether they receive it
they can choose whether they receive it
they can choose whether they receive it in the form of cash chocolate or mix of
in the form of cash chocolate or mix of
in the form of cash chocolate or mix of cash in chocolate when this intervention
cash in chocolate when this intervention
cash in chocolate when this intervention is going to save 40,000 pounds per
is going to save 40,000 pounds per
is going to save 40,000 pounds per individual per year just by shifting
individual per year just by shifting
individual per year just by shifting these individuals from public support
these individuals from public support
these individuals from public support into employment so the days of
into employment so the days of
into employment so the days of government
government
government providing welfare are gone and austerity
providing welfare are gone and austerity
providing welfare are gone and austerity will only make things more challenging
will only make things more challenging
will only make things more challenging social investment can filling the gap in
social investment can filling the gap in
social investment can filling the gap in a new and effective way but it needs all
a new and effective way but it needs all
a new and effective way but it needs all of us it needs all of us to challenge
of us it needs all of us to challenge
of us it needs all of us to challenge convention it needs all of us to make
convention it needs all of us to make
convention it needs all of us to make the right consumer choices let’s say you
the right consumer choices let’s say you
the right consumer choices let’s say you had today the option of two companies
had today the option of two companies
had today the option of two companies one a company simple business model no
one a company simple business model no
one a company simple business model no impact another a company that reinvests
impact another a company that reinvests
impact another a company that reinvests 50% of its profits in two projects in
50% of its profits in two projects in
50% of its profits in two projects in Africa which one would you choose let’s
Africa which one would you choose let’s
Africa which one would you choose let’s invest into the change we all want to
invest into the change we all want to
invest into the change we all want to see thank you
see thank you
see thank you [Applause]
[Applause]
[Applause] [Music]
”
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