The increasing interest for social impact investing from both organised civil society and the commercial sectors brought some EU Member States to explore innovative approaches like Social Outcomes Contracting (SOC) and Social Impact Bonds (read an example here).
In January 2019, the Advisory Hub launched the Advisory Platform for Social Outcomes Contracting to support countries wishing to develop outcomes-based financing approaches.
Objectives of the Advisory Platform
The advisory platform supports the development and use of social outcomes contracts as a strategic and operational tool for delivering social impact and innovation. The main objective is to address key social inclusion challenges in Europe, thus contributing to increasing our societies’ well-being while reducing the financial burden on governments’ budgets. The platform was launched in partnership with the Finnish Ministry of Social Affairs and Health and the Finnish Innovation Fund Sitra.
Watch how Finland uses SOC to support migrant integration:
The EIF funded the KOTO SIB programme with an investment of EUR 10 million from EFSI. EFSI is the central pillar of European Commission's Investment Plan for Europe, the so-called "Juncker Plan".
Social Outcomes Contracting Conference
On 19 and 20 September, the Advisory Hub together with the EU Commission, Sitra and the Finnish Ministry of Social Affairs and Health organised a conference on the “Ecosystems for Wellbeing: Social Outcomes Contracting Platform” in Helsinki.
The event brought together representatives of EU Member States’ governments, public sector authorities, National Advisory Board members on Impact Investing, philanthropic organisations and other impact players.
Opened by Finnish State Secretary from the Ministry of Finance Maria Kaisa Aula, the event focused on showcasing support opportunities available to EU Member States interested in developing Social Outcomes Contracting. The panellists outlined successful examples in Finland, Belgium and Slovenia. During the conference, working groups co-created of a joint action plan that includes support for pilot projects in the EU, the creation of a dedicated page on the Advisory Hub website and other activities such as awareness and capacity building.