24 July 2017 | Internet

Why the money is used: the investment with social impact arrives

Several initiatives promote the financing of activities with positive effects for the society and the planet

Silvia Stang

What has under the magnifying glass of the investors? The possible yield of a financial instrument, the term in which will be able to recover the capital and the risk that is assumed with respect to a possible loss of real or even nominal value is questions that traditionally are considered. But there is a movement in the world of finances that proposes to use a lens: the one that allows to see how they are going away to use the resources and what effects are going to cause in the society and the environment.

To the investments based on putting the center in that aspect (without losing of view other factors, as the yield) the impact flame €œ€. Somehow, it is the financial leg of the forms of the economy that sets out to produce goods and services with brings back to consciousness reason why it happens around, determining concrete goals that they have to do with the improvement of the quality of life - on everything in vulnerable populations and with the reduction or the reversion of the caused damages the planet.

€œWe are at a time of shift of paradigms, a time marked by the 2008 global financial crisis, the successive crises in our country, the sprouting of a form to produce that it has to do with brings back to consciousness of which the resources are finite, and a generation of young people whom it pushes so that the change takes place€, it affirms Mar­a Laura Tinelli, director of Acrux Partners, a consultant of investments of impact with center in South America. Tinelli is one of the promoters of the Work group of Investment of Impact, who integrate the I.A.D.B., companies as MercadoLibre, Nature and Galicia Bank, organizations as the Avina Foundation and the Buenosairean government, among others social actors. From that group it is tried to stimulate one first stage of investments of this type.

€œWe are in the heat of process to obtain bottoms, we already have confirmations of investors by a third of the US$ 120 million which we set out to reach, and we hoped to formalize in the next months the impact bottom to fund projects in Latin America€, he affirms Gonzalo Costa, founding partner of NXTP Labs, that contributes resources to tie initiatives with the technology. NXTP is part of the mentioned work group, and recently it was selected by the Multilateral Bottom of Investments (Fomin) of the I.A.D.B., that will contribute to US$ 5 million to him.

Objective is to fund between 30 and 40 companies that operates in FinTech (financial services), AgTech (farming activity), EdTech (education), CleanTech (services which they reduce or they avoid the contamination), marketplaces (commercialization spaces), SaaS for SMEs (services of software), collaborative economy (disposition of own resources for economic activities) and disruptive technologies, whenever they have tie goals with the social thing.

€œThe entrepreneurs of Latin America have much work made in innovation and technologies, and they also have much of frustration by the deficiencies that there are in the region in the matter of health, education, house, water, energy€¦€, indicates Susana Garc­a Robles, main official of investments in charge of the Group of Funding in Early Stages of the Fomin, of the Inter-American Development Bank (I.A.D.B.). Those frustrations (that can thus be read from the personal perception and that hide after the statistics which they mark to forts social deficits) are, somehow, the source of inspiration for great part of the impact projects, which they pay attention as objective to contribute solutions to part of those problems.

For the Garcias Robles, who encourage the impact investment must consider it as a starring question and not of niche. The promoters of this type of finances say that, with time, all the investments will have to be conceptually of impact, because they trust that the new economies (the viable forms of production) must plot the course so that the activity, in its totality, in line puts with the principles of the respect by the atmosphere and the people.

From the Fomin one began to invest in environmental bottoms more ago than 20 years. And today Garcia Robles considers an error that at that one first moment has relegated the question to obtain or not an economic return. Because the learned lesson indicates that if there is no return, the investment is finished and, therefore, there is no social impact.

Yields

€œA market return can coexist with the social impact€, affirms Fernando Chuit from Pegasus, that by these days he is arming his own bottom of social impact, to which anticipates to destine US$ 30 million. €œWe want that 50% come from local investors and 50% of the outside, and hoped that he is conformed before year end€, Chuit says. The aim will be to fund projects that look for to solve problems of the emergent middle-class (access to house, attention to adults majors, for example) or which they are related to environmental subjects (tasks of recycling or generation of energies of renewable sources). The results that are obtained from social and the environmental thing must be measurable and informed, it adds. €œHe is genuine that, simultaneously, looks for financial returns and that this one is an option for the traditional investor€, adds.

Tinelli reinforces that vision when saying that there is a change in the concept of philanthropy: one goes of the idea to donate to the one to put the own resources to disposition - and way of investment so that it is used them of strategic way in a project that is sustainable in the time.

In the world, the identified investments of impact arrived this year at US$ 114,000 million, according to a report of the Global Impact Investing Network, an organization with headquarters in New York. Of that total, only 5% are in Latin America.

Locally, an initiative that began to be funded with this type of instruments is platform EMI: for their development $ 230,000 of the bottom were reversed so far Turns. €œEMI is a platform that facilitates the search of work to the average and low sectors of the society, and at the same time helps the companies to find faster and of more efficient way to the candidates; one is based on the use of artificial intelligence€, it explains Pablo Sim³n, founder of Turns, a bottom that is working in rising capital to arm a plan to 4 years.

In the mission to encourage the impact investment, the roll of the governments appears as fundamental, if it is considered that the problems that look for to attack are such that any solution that does not involve multiple actors or that does not look for, as a whole, an expansive effect, will not obtain a long-range transformation for the society.

From the GCBA they indicate that they are working in the launching of a bond, under the modality of a €œbond of social impact€. The impact bonds are instruments that offer a tied rate of return to the fulfillment of an objective that implies a social improvement. According to Adolfo D­az Valdez, director of Strategic Planning of the Buenosairean government, in these days is defining target at which he will score, the model of hiring of those who will give services for the fulfillment of the goals, and the metric ones to evaluate the results. The plan would be ready towards August ends, according to adds the civil servant.

Also with participation of the sectors public and prevailed, the calls green bonds set out to obtain resources to fund the careful economy of the environment. Pablo Cortinez, coordinator of Businesses and Atmosphere of the Vida Silvestre Foundation, warn that in this aspect, Argentina goes very behind other countries, even of the region. It remembers that the first emission of this type in the country was the realised one in February by the province of La Rioja, by US$ 200 million, for the construction of a Aeolian park, that is to say, for the generation of energies of renewable sources.

€œIt is moment of which Argentina puts the batteries€, Cortinez says, that he made his labor trajectory in the world of finances until arrived at the foundation. That fusion, the one of the world of the funding with the one of the activities that promote the responsible economy, is necessary so that to produce from an understood model of good viability, it has force and continuity.

Source: La Naci³n

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