We engage in foresight, research and experiments enabling Finland to succeed as a forerunner in sustainable well-being

We engage in foresight, research and experiments enabling Finland to succeed as a forerunner in sustainable well-being.

• We engage in foresight, research and experiments enabling Finland to succeed as a forerunner in sustainable well-being.

• Our vision of a sustainable future forms the basis for practical action all the way down to the details.

From May 2014 till December 2016

• From May 2014 till December 2016

• Focus on well-being promotion

• Impact goals

• Active impact investing ecosystem
• Impact investing model (financing instruments etc.) in use in Finland

Scoping the Finnish market; defining social challenges, seeking impact actors to tackle these challenges and increasing awareness & interest among private investors

• Scoping the Finnish market; defining social challenges, seeking impact actors to tackle these challenges and increasing awareness & interest among private investors

• Collecting and creating publicly available comprehensive benchmarking data

• Developing and setting the industry standards for measurement

• Supporting the development of impact investing fund in Finland

• Launching and building Social Impact Bond pilots

• Organizing workshops and events to enhance cooperation among relevant stakeholders

• Coordinating the development of a common definitions and terminology

• Supporting the development of using social marketing as a tool for behaviour change

Members and Deputy Members

• Members and Deputy Members

• The Ministry of Finance / Director Pentti Pikkarainen, Chairman The Ministry of Social Affairs and Health / Director Veli-Mikko Niemi

• LocalTapiola Asset Management Ltd / CEO Tom Liljeström, Vice-chairman Ilmarinen Mutual Pension Insurance Company / Director Esko Torsti

• FIM Ltd / CEO Teri Heilala Taaleritehdas Plc. / Investment Manager Heikki Nystedt

• Finland’s Sustainable Investment Forum / Board Member Riikka Sievänen Finnish Business Angels Network / Chairman Jaakko Salminen

• Me-säätiö (foundation) / Managing Director Ulla Nord Kone Foundation / Vice-chairman Ilona Herlin

• Finland Chamber of Commerce / CEO Risto E.J. Penttilä Arvo Finnish Association of Social Enteprises / CEO Kimmo Lipponen

• The Association of Finnish Local and Regional Authorities / Special Advisor Jari Vaine The Ministry of Employment and the Economy / Labour Market Counsellor Jussi Toppila

• SOSTE Finnish Federation for Social Affairs and Health / Secretary General Vertti Kiukas Valo, Finnish Sports Confederation / Secretary General Teemu Japisson

• The Prime Minister’s Office / Head of Unit Sirpa Kekkonen The Prime Minister’s Office / Ministerial Advisor Taina Kulmala

• VATT Institute for Economic Research / Director General Anni Huhtala Aalto University / Professor Otto Toivanen

• Finnish Innovation Fund Sitra / Director Timo Lindholm Finnish Innovation Fund Sitra / Head of Focus Area Mika Pyykkö, Secretary

Can be used, when…

• Can be used, when…

• the buyer (public sector) wants to purchase outcome / impact
• investments have to be done very up-front compared to expected social impact and financial return
• there is a very large or narrow population group
• there are political issues or practical risks

• Strong future orientation with focus on preventive measures

• Functional and financial modeling and impact measurement

1. Determine demand and define target demographic group (preliminary)

• 1. Determine demand and define target demographic group (preliminary)

• 2. Verify the development of the effect, costs thereof during the past 2-5 years and future trends; compare change in wellbeing of target demographic group against demand

• 3. Verify causes for cost development

• 4. Define root causes for cost development and opportunities to prevent these

• 5. Define the target results (social and economic)

• 6. Define the activities necessary to affect root causes (service / operational package)

• 7. Select organization(s) to implement service package 

• 8. Calculate the net execution costs for the service package

• 9. Conduct a cost-benefit analysis: achievable benefits vs. required investment

• 10. Final decision on establishing SIB à program planning etc.

• Implemented as part of Sitra's Impact Investing focus area (The first SIB in Nordic countries)

• Objective

• Provide municipal/state employers with a service package that enables them to promote occupational wellbeing and thereby e.g. reduce sick leaves in their own organisations

• Parties to the agreement

• Municipal/state employer and Epiqus Occupational Well-Being I Fund (Epiqus, social enterprise managing the fund / project)

• Service funding and pricing

• Service will be produced on the basis of SIB funding

• The customer organisation will be automatically liable only for its own participation fee (EUR 15 / person)

• As the actual outcome-based service payment, the customer organisation will pay a separately agreed proportion of the cost-savings generated by the reduction in sick leave and any other measurable positive developments

• Service providers

• The subcontractors of The Fund (Epiqus) Aino Health Management Oy, Headsted Oy, Tietotaito Group Oy and Trainers’ House Oyj

• Envisaged duration of contract per organisation 3 years

Support for development of holistic occupational well-being service approach:

• Support for development of holistic occupational well-being service approach:

• - Baseline survey
• - Plan for enhancing occupational well-being
• - Health management system
• - Services for hole organization and individuals
• Development of leadership (including an idea of early support)
• Development of working conditions
• Way of life interventions
• Support for scoping at work (recovering etc)
• Use of technology
• Etc
• - Occupational health services
• - Evaluation

• Service

• - Will be implemented by outcome based contract and useing SIB model, if necessary
• - Will be offered first ”only” to public sector organizations

3/14 Decision to start Impact Investing Focus Area and planning of occupational well-being project

• 3/14 Decision to start Impact Investing Focus Area and planning of occupational well-being project

• 4/14 First meetings with possible client organisations

• 9/14 Decision about service providers (coalition)

• 10/14 Public inquiry for Fund Manager with interest to build an occupational well-being SIB (fund)

• 12/14 Decission about the Fund Manager (Epiqus)

• 3/15 First client agreement get signed

• 5/15 Implementation get started in the first client organisation

• 11/15 First closing of Epiqus Occupational Well-Being I Fund

The customer organisation has 1,000 employees

• The customer organisation has 1,000 employees

• When the contract is signed, customer pays a one-off participation fee: EUR 15 per employee i.e. a total of EUR 15 000

• The Fund (Epiqus) pays the service provider coalition for activities carried out to promote occupational well-being; on average EUR 300 per employee per year i.e. a total about of EUR 300 000 per year

• After a year, the auditors will verify any changes occurring in the number of days of sick leave

• Compared to the starting point, the number of days of sick leave fell during the year by an average of two days per employee

• bonus to The Fund: 1 000 x 2 x EUR 175 or a total of EUR 350 000

• Restoration of invested capital EUR 300 000
• Return EUR 30 000 (10 %)
• Bonus to service providers etc. EUR 20 000

• After the first year, the aforementioned verification of changes in the number of days of sick leave will be performed every six months, with the project starting point as the point of comparison in each case

• Sitra is ready to invest EUR 1,5 million into this SIB; the first closing was November 10th in 2015 with Me-säätiö (foundation), Sitra and a private investor as anchor investors

• Goal

• Harmonisation of measurement methods (i.e. benchmarking)
• Identification of predictive indicators
• Diversification of outcome evaluation for performed measures
• Practical tools at different levels of each organisation
• Make use of information generated by the project in question or, where appropriate, existing data belonging to the Finnish Institute of Occupational Health, Keva (”Local Government Pensions Institution”) etc.
• The Ministry of Social Affairs and Health, the Finnish Institute of Occupational Health and Keva will be involved as partial funders and/or experts.

Objective

• Objective

• Speed up employment of immigrants, pilote new models of education and employment and combain education and work in a flexible way

• Status

• Project / Fund Manager has been chosen and is especially in charge of

• Plannning and managing the project
• Building up the financial instrument = fund (limited partership)

• Fund raising and managing the fund

• Organising according to the impact goals of the project education and employment activities of immingrants in co-operation with different service providers

• Follow up, interim reporting and the final reporting

Occupational Well-Being project up and running

• Occupational Well-Being project up and running

• Fast employment of immigrants

• -> Program / Fund Manager has been chosen on May 12th

• Promotion of Children’s, families’ and youth’s well-being

• - 10-40 municipalities

• Support of the elderly’s independence

• - 3-30 municipalities

• Advancing employment

• - 6-10 municipalities

• -> Procurement process for choosing the Program / Fund Manager (one organization or joint venture) to start

• All possible investors have shown (quite) high interest

Neutral coordinator is valuable

• Neutral coordinator is valuable

• Concept has to be introduced more than once and from certain perspective to all stake holders

• Often have to start from very basic questions

• Practical guidelines help to understand

• Main stake holders have to sit at the same table soon enough and create a common language

• Intermediators have a very important role

• In terms of SIB

• Itself is not the issue, but a very good excuse

• Needs and desire of public sector is crucial

• It is very much (also) new kind of co-operation

• Modelling makes also measurement possible in a reasonable way

Building Social Impact Bond pilots to get public sector

• Building Social Impact Bond pilots to get public sector

• - to purchase outcome / impact

• - to invest to promotion and prevention in terms of well-being

• -> Occupational Well-Being SIB is up and running and four more funds in the making

• Sitra Impact Accelerator II

• Sustainable business model, economic and operational modelling, measurement

• Impact Accelerator for NGOs with the Ministry of Education and Culture and the Ministry of Social Affairs and Health, Finland’s Slot Machine Association and three ”umbrella” NGOs

• Interaction with possible investors, public sector representatives and other stake holders

• Guidelines for Impact Investor

• Guidelines of innovative procurement, payment by results and SIB model

• International co-operation

• Communication

10/13 Decision to start preparation of New working life and sustainable economy theme including Impact Investing Focus Area

• 10/13 Decision to start preparation of New working life and sustainable economy theme including Impact Investing Focus Area

• Impact Investing Fund of Finland and other studies
• Interviews of main stake holders

• 3/14 Decision to start Impact Investing Focus Area and planning of occupational well-being project

• 4/14 First meetings with possible client organisations of occupational well-being project

• 6/14 Impact Investing Focus Area get started

• 8/14 Final decision about the project plan of focus area

• 9/14 First meetings with possible co-operation partners including breakfast event for investors

• 9/14 Decision about service providers (coalition) of occupational well-being project

10/14 Public inquiry for Fund Managers with interest to build an occupational well-being SIB

• 10/14 Public inquiry for Fund Managers with interest to build an occupational well-being SIB

• 10/14 First market study (possible service providers)

• 11/14 Study tour to London

• 12/14 Decission about the Fund Manager of occupational well-being SIB

• 12/14 First national impact investing conference

• 1/15 First meetings with Mayors

• 1/15 Idea challenge get started (innovations for promoting children’s well-being etc)

• 3/15 First client agreement of occupational well-being SIB get signed

• 4/15 Idea challenge get finished

• 4/15 Modelling of the first SIB project concerning promotion of children’s, families’ and youth’s well-being get started

5/15 Implementation of occupational well-being SIB get started

• 5/15 Implementation of occupational well-being SIB get started

• 6/15 SIB workshop for municipalities

• 8/15 Decision to call a national impact investing taskforce

• 9/15 Modelling of a fast employment of immigrants SIB get started

• 9/15 First orientation discussions with taskforce candidates

• 10/15 SIB guidelines for public sector get published

• 10/15 First pilot of impact acceleration program get started

• 11/15 First closing of Epiqus Occupational Well-Being I Fund

• 11/15 New Non-Profit program (Start Ups and NGOs) beside Slush event

• 11/15 First meeting of National Impact Investing Taskforce

• 12/15 Second national impact investing conference

• 12/15 Procurement process of Fund / Project Manager of fast employment of immigrants SIB get started

1/16 First individual interviews of national taskforce members

• 1/16 First individual interviews of national taskforce members

• 1/16 Decision to start to develop circumstances for three new thematic SIB fund (Promotion of Children’s, families’ and youth’s well-being, Support of the elderly’s independence, Advancing employment)

• 1/16 First training pilot of social marketing get started

• 2/16 First impact investing pitching event

• 3/16 Second meeting of national taskforce

• 3/16 Second pilot of impact acceleration program get started

• 3/16 First workshop of thematic SIBs for municipalities

• 3/16 Proposal of NGO impact accelerator program piloting to the Ministry of Education and Culture and the Ministry of Social Affairs and Health

• 4/16 First regional investor meeting

• 5/16 Decission by the Ministry about the Fund Manager of fast employment of immigrants SIB

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