Scaling The Use of Guarantees in U.S Community Investing

Credit-enhancement tools can be a powerful way to stimulate increased private-sector investment in solutions to social and environmental problems. Guarantees, one type of credit enhancement tool, offer exciting ways to leverage relatively small amounts of capital to address the real and perceived risks that keep many investors from participating in impactful deals.
Impact investing has become a hype for both private and non‐profit sectors, and this has also become true in Latin America. This report studies the effect this had on supporting growth of social enterprises.

The organization

Caspian invests debt and equity capital into high quality enterprises in India, with the intent to generate social and/or environmental impact alongside a competitive financial return. Their focus areas include financial inclusion, food & agriculture, affordable housing, healthcare and clean energy. They have a track record of making investments and supporting some of the best known social impact enterprises. As one of the early entrants and leaders in the impact investing space in India, they are also one of the few fund managers with a proven exit track record and are are currently raising their fourth fund. They look for companies with innovative business models and high quality entrepreneurs who demonstrate the intent to provide a healthy financial return along with a social return to investors and have adopted or are willing to adopt clear deliverables on social and/or environmental performance.

Certified B Corp status

Caspian is a Certified B Corporation, or ‘B Corp’. B Corps are for-profit companies that use the power of business to solve social and environmental problems in an ethical and transparent manner. There are over 2,100 Certified B Corps across 50 countries and 130 industries. Caspian is the first Indian Impact Investing firm to be granted a B Corp certification. ​ The B Corp certification by B Lab confirms that Caspian meets rigorous standards of social and environmental performance, accountability, and transparency. During the process, they have been evaluated on how our practices impact our employees, our community, the environment, and our customers. To learn more about a B Corp certification watch this video from B Lab.

The impact

The rise of the impact economy is creating both opportunities and imperatives for businesses, investors and Government. This report from the UK National Advisory Board on Impact Investing  offers five practical, actionable recommendations that can help the UK be a leader in building a more inclusive and sustainable economy, and tackle some of the greatest challenges of our time.
The EU budget faces a tough challenge to fund more with less. The EU is expected to play a bigger role in new policy areas like migration, internal and external security or defence. And Europe should also preserve its leading role on the global stage, as a major humanitarian and development aid donor and as a leader of the fight against climate change. That must be achieved with an EU budget that will only get smaller following the departure of the United Kingdom. This reflection paper looks at this challenge and puts the key elements for discussion on the table, structured around five scenarios. The report is available in 22 different languages.
The reflection paper opens up a vital debate on how the EU can best harness globalisation and respond to its opportunities and challenges. On the external front, the paper focuses on the need to shape a truly sustainable global order, based on shared rules and a common agenda. On the domestic front, the paper suggests tools to protect and empower citizens through robust social policies and providing the necessary education and training support throughout their lives. The report is also available in 22 languages.  
The Argentinian Government, based in Buenos Aires, is currently working to develop the first Social Impact Bond in Argentina. This will look to tackle vulnerable youth employability. More details to follow.
The B Corp Law in Argentina proposes a new legal from for companies that have: 1) purpose beyond profit for its shareholders, to include triple impact: economic, social and environmental, 2) Duty of Managers, that must consider medium and long term interests of stakeholders linked to the business including consumer, communities where the business operates, and the environment. 3) Reports and transparency:  annual reports about the company’s triple impact You can find out more about it here:
In this short video from the UK National Advisory Board, public officials look at what constitutes social value, and how it can be achieved in public procurement.
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