Social impact investing

Social Impact Investing (SII) involves investing money in projects that give lower than market financial returns in exchange for social impact. SII helps to make the world a better place for all of us.

The Achieve Foundation is creating an environment where SII can partner in opportunities that achieve the best outcomes for people with disability.

Read about our involvement at the Impact Investment Summit 2023

Timing for investments

Now is the time to take advantage of rapid growth in SII. There is major interest from investors and the government sector, and a lot of room for SII growth in the disability area because of:

Demand. The Responsible Investment Association Australasia (RIAA) suggests that demand for impact investment products has the potential to rise to $100 billion by 2025

Capacity. Less than 1 per cent of SII is invested in any projects related to people with a disability; there are more than 4 million people with disability in Australia

Value. There is a growing body of evidence that social impact investing works. The most recent evidence can be found in a report from Big Society Capital (BSC) in the UK which is considered a pioneer and global leader with more than 80 projects launched in the last decade . BSC’s report states that the benefit-to-cost ratio of social impact bonds (a form of SII) in the UK is 10.20, implying that every £1 spent by the UK government generated £10.20 of public value.

Social impact investment opportunities

The opportunities for SII to contribute to outcomes for people with disability have yet to be fully explored. The Achieve Foundation has partnered with Social Ventures Australia (SVA) to grow this field, with a focus on the areas of housing, employment and enabling technologies.

In 2020, the Global Impact Investing Network put the global SII market value near $1 trillion. SII can provide the resourcing needed for innovation, particularly where there are barriers to accessing other sources of capital.

Facilitating investments

Effective ‘catalytic’ intermediaries are key to driving innovation. They can connect investors, investees and agencies in a field that is new for many parties.

Intermediaries link needs, solutions and investment, and can also develop the innovative financial mechanisms needed. Intermediaries will help build the groundwork needed for SII to reach its potential, including:

Sector expertise. This includes cultural and logistic investment-readiness among investees.

Quality outcomes data. Expectations and approaches to measuring outcomes and impact performance vary. In the disability context, it is important to include a clear focus on outcomes generation. This will avoid the activity and outputs focus that has too long plagued the sector.

Changes to ‘ableist’ attitudes. SII demands a new approach that recognises and employs the expertise of people with disability in both understanding barriers and creating solutions. Rather than ‘beneficiaries’, people with disability are active players involved in co-creating products and services.

Download the What’s next? Opportunities for Social Impact Investing to Deliver Outcomes for People with Disability report.