Social Impact Investing

SOCIAL IMPACT INVESTMENT: BUILDING THE EVIDENCE BASE
Table 4.1. List of attributes for Social Target Areas
CHARACTERISTICS Attributes of the Characteristic Eligibility *
Typically
Philanthropy
Community
Culture
Arts
1. Social Target Areas
Core SII
areas
Ageing
Disability
Health
Children and Families
Public order and Safety
(Affordable) Housing
Unemployment
Education and Training
IN
IN
IN
IN
IN
IN
IN
IN
Other areas,
leaning
towards
mainstream
Agriculture
Environment and Energy
Water and Sanitation
Financial Services (incl. Microfinance)
ICT
* Eligibility used in the OECD definition for the purpose of this report. The areas not clearly listed as being core SII are context
dependent (see section 4.2.2).
Source: OECD.
4.18 It should be noted that there is often a degree of overlap between social areas. Not only can
issues cut across various social areas, but actions in one area can have an impact or spillover into other
areas. Chapter 5 discusses social issues and their implications in further detail and also points to examples
such as the intersection between health and ageing areas.
4.2.2. Beneficiary context
4.19 As discussed in the section above, some investment activity might target areas that would not fit
within the typical SII. However by addressing the needs of populations at risk or those living in
underserved or developing areas, regions or countries, some of those transactions might be considered to
be SII (Table 4.2 below). Financial services can be used as an example. In developing regions, in which
access to financial services may be limited, providing financial services in economically disadvantaged
areas, with eventual returns on investments would be considered SII as these investments can lead to
improvements in the living conditions of the population. While some of these types of investments may be
considered in the sphere of development finance, they can also be considered to be in a broader definition
of SII.
4.20 The same principle applies to IOT, an agriculture company whichbreeds sea cucumbers in
Madagascar and one of the portfolio companies of Investisseurs and Partenaires, a SII intermediary (see
WGIM, 2014). 8 While such a business would not be considered SII if operating in developed countries, the
social dimension arising from the contribution to the fight against hunger and through the improvement of
employment and living conditions for local populations, means it could be considered to meet SII criteria.
8 . Further information can be obtained through I&P’s website, available at:
http://www.ietp.com/entrepreneurs_en/#profil
© OECD 2015 47