You are here

Social Finance and Impact Investing: Measuring Non-Financial Returns

The Social Finance and Impact Investing Working Party looks at Social Finance and Impact Investing and the measurement of non-financial returns

There are a number of non-financial return factors that have a clear impact on global well-being, and ultimately on financial returns, which should be included in investment considerations. These include:

  • externalities - the impact on those not directly involved in a transaction or decision – and how this might affect outcomes
  • social investment – including social impact bonds and the Universal Owner Hypothesis
  • the idea that institutions which address non-financial questions effectively will also provide improved financial outcomes (certainly in the long term).

The initial focus of this Working Party will be on Social Impact Bonds, including:

  • what they are
  • what work already exists on the topic
  • different examples from around the world and how they are treated differently
  • how to measure the Social Impact included in the return
  • possibility of interaction with peer-to-peer/group investing
  • how actuarial techniques can be applied to improve the financial and non-financial returns
  • interaction with ESG/SRI (in particular development of positive ESG measures, as opposed to negative screening “not investing in tobacco and weapons”).

We will also compare how actual Social Impact bonds are performing in various parts of the world, in both financial and social terms.

Outputs:

  • Presentation at the Momentum Conference 2015
  • Likely presentation at Asia Conference 2016
  • Presentation and discussion at Risk and Investment Conference 2014.
Chair: Matt Bacchus
Membership: 5
Established: 2013

Related documents

Contact Details

If you want more information about this research working party please contact the Communities Team.

professional.communities@actuaries.org.uk

Filter or search events

Start date
E.g., 27/09/2021
End date
E.g., 27/09/2021

Events calendar

  • Spaces available

    A panel discussion with investment representatives discussing the impact of investment on climate change and vice versa.

    This event is part of The Road to Glasgow: IFoA’s Sustainability Thought Leadership Series which will provide a platform for prominent contributors so that our members and others can understand the perspectives of a wide range of parties interested in the climate debate.

  • Spaces available

    Climate change is one of the greatest risks facing our world today. Addressing it will require multi-faceted solutions. Through this panel session, we will explore the different levers that can be used to meet net-zero targets including climate science and data, government engagement, and mobilising green finance.

  • Spaces available

    How governments and societies collectively respond to the climate crisis is increasingly being analysed through the lens of intergenerational fairness. Our expert panel will assess and explore the extent to which inter-generous fairness is being considered in climate policies, the lessons from those countries who are leading the way on fairness and justice in climate interventions, and more.

  • The Growth Mindset for Actuaries

    13 October 2021 - 8 December 2021

    Spaces available

    This practical course is aimed at actuaries at any stage of their career who want to develop their own growth mindset and apply it to their work setting and personal or professional lifelong learning. The content of the course builds on the lecture given by Dr Helen Wright on Growth Mindset as part of the President’s 2021 Lecture series, and will be delivered over a period of 2 months, from mid-October to early December.

  • Spaces available

    The climate crisis and the degradation of our planet will affect societies everywhere. How we address these threats will require solutions that transcend borders. As a global profession, the actuarial community is well-placed to consider and propose effective risk management solutions to help manage the climate crisis.

  • Spaces available

    Content will be aimed at all actuaries looking to understand the issues surrounding mental health in insurance and in particular those looking to ensure products and processes widen access for, and are most useful to, those experiencing periods of poor mental health.