TOWARDS AN IMPACT INVESTMENT ECOSYSTEM: From CSR to the Jamaica Social Stock Exchange. Dr. Claire A. Nelson Futurist & Sustainability Engineer

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1 TOWARDS AN IMPACT INVESTMENT ECOSYSTEM: From CSR to the Jamaica Social Stock Exchange Dr. Claire A. Nelson Futurist & Sustainability Engineer

2 IMAGINE The Gleaner Virtual Edition January 31, 2030 The Jamaica Social Enterprise Development Fund (JAMSED Fund) meets US$50M-50K Enterprises Challenge. The Jamaica Social Enterprise Development Challenge Initiative launched at SEBI 2017 has met its targets of raising $US50M through diaspora capital equity and loan investments to 50,000 small and micro businesses. Claire A. Nelson Ph.D.., The Futures Forum,

3 IMAGINE Jamaica Observer Online Edition.. January 26, 2030 The Jamaica Research and Innovation Development Corporation (JARIDCO) wins global S&T Innovation award. The neutraceutical giant JARIDCO, founded in 2020, is a traded company on the Jamaica Social Stock Exchange, is a mutually owned social enterprise formed by the BioMedtech Associates the Jamaica XXI Investors Club - a diaspora investment B Corp.

4 IMAGINE Jamaicans.Com January 26, 2030 The Jamaica Rural Economic Empowerment Partnership (JAREEP) meets 5,000 community agriindustry micro-enterprises goal. JAREEP - a special initiative of the Jamaican Mission Investors Alliance, a network of Foundations and Philanthropists which established the program to address the twin challenges of unemployment and underdevelopment in rural Jamaica under the banner Farm the Future. Claire A. Nelson Ph.D., The Futures Forum,

5 AGENDA A Vision for Change Jamaica Vision 2030 Jamaica - The Place of Choice to Live, work and raise our families. The Sustainable Development Goals (SDGs) define (17) global priorities and aspirations for 2030.

6 AGENDA 2030: Role of Business Business is a vital partner most urgent societal challenges. in achieving the Sustainable Development Goals. Companies can contribute through their core activities, and we ask companies everywhere to assess their impact, set ambitious goals and communicate transparently about the results. Ban Ki-moon, United Nations Secretary-General

7 UN GLOBAL AGENDA combat inequalities within and among countries & build peaceful, just and inclusive societies - protect human rights and promote gender equality & the empowerment of women and girlsto ensure the lasting protection of the planet & its natural resources - create conditions for sustainable, inclusive and sustained economic growth, shared prosperity and decent work for all

8 JAMAICA VISION 2030 JAMAICA a Place of Choice to Live, Work, Do Business and Raise Your Families F (Economic Growth, Equal Opportunity, Social Equity, Environmental Regeneration/ Sustainability) ENTER IMPACT INVESTING!

9 WHAT IS IMPACT INVESTING an investment approach intentionally seeking to create both positive financial return as well as positive social or environmental impact that is actively measured (WEF). Impact investments target a range of returns from below-market to above-market rates, depending upon the circumstances, by placing capital in businesses, non-profits, and funds that can harness the positive power of enterprise.

10 TYPES OF INVESTING Grant capital/mission Investment to a not for profit Equity investment in a social enterprise or impact fund Program related investment (PRI) to a not-for-profit Loan to a community development financial institution (CDFI) Retirement account investing in a fixed income bond fund that seeks and measures social impact

11 IMPACT INVESTMENT ECOSYSTEM the landscape of market mechanisms, entrepreneurial methods, organizations and institutional arrangements and incentives providing goods and services to, or using and enabling the productive capabilities of disadvantaged sections of the society, in such a way as to make a measurable impact on wider social transformation and sustainability objectives.

12 Known by Many Names and Variants Socially Responsible Investing Sustainable and Responsible Investing Social Venture Capital Investing Double or Triple Bottom Line Investing Ethical Investing Mission-related Investing Green Investing Values-based Investing ESG (Environment, Social, Governance) Investing

13 Impact Investing Ecosystem Elements Sources of Capital Organizations or individuals who control their own funds which they use - private foundations, venture capitalists, both accredited & unaccredited investors. End Users of Capital Organizations that convert capital into social and environmental impact - not-for-profits and social enterprises. Intermediaries of Capital bridge between the sources of capital and the end users of capital dependent on external funding, e.g. CDFI. Field Builder not exclusive from the other three, a field builder is an organization that is doing any kind of work to grow or mainstream impact investing.

14 Potential Stakeholders Individuals Banks and Credit Unions Foundations Community Development Finance Venture Capitalists & Private Equity Investors Pension Funds Colleges and Universities & Religious Institutions Investment Management Firms Institutional Investors Money Managers Family Offices

15 WHAT IF? 11% of the charity expenses of Jamaicans could be transformed into social capital investments in Jamaica? 11% of the social safety net expenditures via remittances from the diaspora could be invested in social enterprise development in Jamaica? 11% of the financial investments in Jamaica were focused on transforming social equity in Jamaica? ENTER SOCIAL STOCK EXCHANGE

16 VISION 2030 for FINANCIAL SECTOR OUR VISION Economic growth which allows us to drive values of social impact and environmental development needed for inclusive prosperity OUR MISSION To develop, implement and support the creation of an impact investment ecosystem through participatory industry engagement and creative design

17 Jamaica Impact Investment Exchange The Jamaica Impact Investment Exchange (JAMIIX) exists to support the achievement of inclusive sustainable prosperity by promoting various pathways that contribute to improvements of responsible investing practices in Jamaica. Key inter-related elements: Social Stock Exchange (The Trading platform & Brokers) CSR Index (The measurement systems & Regulators) Impact Investment Funds (The Financiers) Socially Responsible Enterprises and Projects (The Products)

18 WHY JAMIIX Increased transparency, so that "social investors" can make educated choices and "social impact entities" i.e. SEs, NGOs, SI Funds receive needed capital. Improve efficiency and effectiveness of responsible capital available by bringing together the diverse group of stakeholders in the field. Provide opportunity for impact investment to retail investors, and make the field more attractive to institutional investors globally.

19 EVOLUTION OF SSEs Brazil, the Bolsa de Valores de Sao Paulo (BOVESPA) 2003, the first philanthropic donation arm of the Brazilian stock exchange, considered the pioneer of social stock exchanges. South African Social Investment Exchange (SASIX) 2006, philanthropic initiative with the Johannesburg Stock Exchangeoffers ethical investors a platform to buy shares in social projects. Kenya Social Investment Exchange, 2009, promotes access to funding for Kenyan entities that incorporate a triple bottom line approach (might be inactive).

20 EVOLUTION OF SSEs Impact Exchange, a collaboration between Impact Investment Exchange (IIX) and the Stock Exchange of Mauritius (SEM) (July 2013) full-scale social stock exchange with an ability to issue and trade shares and bonds of social enterprises from across the globe. Singapore: Impact Exchange 2013, a public SSE. aims to function similarly to the UK SSE by providing information about valued social businesses and impact investing funds. Includes nonprofits in its list of issuers, which can issue debt securities such as bonds.

21 EVOLUTION OF SSEs U.K. Social Stock Exchange (June 2013) designed to connect the general public (not just accredited investors) with impact investments. Social Venture Connexion (SVX) -Canada (September 2013) connects capital-seeking social enterprises and accredited investors. SVX approves issuers (social ventures, impact investing funds, and nonprofits) for membership.

22 EVOLUTION OF SSEs They differ in a number of ways, including: the type of activity undertaken (actually facilitating trading or playing more of a matchmaking role) who can invest (the general public or just accredited investors the degree to which listed social enterprises must be focused on addressing a social issue

23 WHAT NEXT? Create an Impact Investment Alliance as industry association to include Foundations, Family Offices, NGos Establish Trading platform (Social Stock Exchange) Design a Jamaica CSR Index & Compact Create Public/Private Dialoguep for Establishment of Regulations and Policies Conduct Training for CSR Impact Measurement for All Stakeholders

24 IMAGINE 2030 JAMIIX The Jamaica Impact Investment Partnership surpassed its targets and achieved US$100M in impact investments through the Jamaica Social Stock Exchange, creating over 500,000 jobs and US$100M in niche high value exports since Brand Jamaica is soaring high as crime continues to decline with Jamaica falling to the bottom 40 percentile of violent countries. Immigration to the island is at an all time high as Jamaica becomes more and more the place of choice to live, work, do business, and grow your family.

25 The Audacity of Regeneration The Audacity of Hope Change the Mind - Development starts with identity Change the Behavior - Development needs empowerment Change the Rules - Development calls for equality Change the Game - Development demands equity

26 THE FUTURE IS OURS TO CREATE!!!! Envision it! Believe it! Make it! JAMAICA..LAND WE LOVE

27 THANK YOU FOR LISTENING Dr. Claire A. Nelson Futurist & Sustainability Engineer White House Champion of