In September 2015, the United Nations reached agreement on the 17 Sustainable Development Goals, to be achieved by 2030.
In order to successfully and timely reach these goals, it is estimated that at least USD 76 Trillion of funding is required. Funding of such magnitude, will require various sources, predominantly privately financed: private wealth, institutionals and special impact investment funds. In order to “seduct” investors to put their money where their mouth is, the projects need not only to be capable of achieving a notable impact on one or more these sustainable development goals, but also to generate a financial return. All these various forms of funding nowadays are called: Impact Investing.
But, how does one do that?
There is a range of possibilities and of funders varying from institutional investors who choose not to invest in companies involved in oil & gas, or in landmines – the so called “exclusions” – or institutionals who take a more active approach and choose to primarily invest in projects or other asset classes related to generating sustainable energy. Also, there are investors who are truly engaged. Last but not least there still are philantropists who invest in getting possible projects in a more or less investment grade state. The Unitied Nations Principles for Responsible Investments and the Equator Principles encourage funders to only invest in projects which meet minimum standards regarding the environmental and social aspects of the projects invested in.
There also projects of a different nature, which require a totally new way of thinking and of funding, creating new business cases, connecting disciplines which normally would not work together. Take, for instance, Commonland (http://www.commonland.com/en/about-us) a company with a completely different mindset and which is involved in mass land restoration projects in China, Spain and Australia. They are the reverse from the mission which has to be carried out by Staatsbosbeheer. Staatsbosbeheer needs to reinvent itself in order to not only preserve nature with a sustainable impact, but generating a good return at the same time. Both have in common that their projects require a long term view.
Choices need to be made: by investors, by companies and institutions involved in creating impact. The latter category need to come up with business cases which promise not only a return but also a level of impact which is capable of demonstrating the required level of social or environmental impact.
At this session the IPFA will bring together a range of speakers from the various fields mentioned before. Sylvo Thijsen, CEO of Staatsbosbeheer will kick-off and explain how – very close to home – Staatsbosbeheer is facing these challenges. Next, Willem Ferwerda of CommonLand will certainly inspire the audience with his story of the 4 returns, of which Inspiration is number One. A representative from the Dutch Ministry of Foreign Affairs will explain how the State contributes to impact investing opportunities abroad, for instance by initiatives such as the Dutch Good Growth Fund (http://english.rvo.nl/subsidies-programmes/dutch-good-growth-fund-dggf) and by its involvement in FMO. Finally, a representative from FMO, the Dutch IFI which – after IFC – is the largest impact investor in the world will explain how FMO achieves its impact objectives.
In the Panel Discussion they will be joined by a representative from PGGM's responsible investment team (https://www.pggm.nl/wat-vinden-we/Paginas/Impact-investment-concrete-problemen-oplossen.aspx, Dutch)
(http://english.rvo.nl/subsidies-programmes/dutch-good-growth-fund-dggf).
Previously, this session was announced as focussing on the theme Public Wealth of Nations, the book by Dag Detter and Stefan Folster. Unfortunately, Mr Detter was not able to attend the meeting, hence the new theme which, in the end, lies very close to the theme to be discussed at this session. When projects with an impact on public assets are being set up to generate a return as well, public wealth will grow.
The IPFA is grateful to the Ministry of Finance for hosting this session.
The agenda is outlined below.
Registration 3.30pm
4.00pm Welcome by the Host
Wouter Raab, Director of the PPI unit, Ministry of Finance
4.10pm Introduction to the Theme
Arent van Wassenaer, Chairman, IPFA Netherlands
4.15pm How Staatsbosbeheer Creates Public Wealth by also Generating Impact
Silvo Thijsen, CEO, Staatsbosbeheer
4.35pm The 4 Returns of Commonland
Willem Ferwerda, Ceo, Commonland
4.55pm Impact Investing for Development
Selwyn Moons, Deputy Director of the Sustainable Economic Development Department, Ministry for Foreign Affairs
5.05pm The Role of a Dutch IFI in Creating Impact
Yvonne Bakkum, Managing Director, FMO Investment Management
5.25pm Panel Discussion
Moderated by: Arent van Wassenaer, Chairman, IPFA Netherlands
Silvo Thijsen, CEO, Staatsbosbeheer
Willem Ferwerda, Ceo, Commonland
Yvonne Bakkum, FMO Investment Management
Selwyn Moons, Deputy Director of the Sustainable Economic Development Department, Ministry for Foreign Affairs
Gert-Jan Sikking, Senior Advisor Responsible Investment, PGGM
6.05pm IPFA Update
Arent van Wassenaer, Chairman, IPFA Netherlands
6.10 Closing Remarks
Wouter Raab, Director of the PPI unit, Ministry of Finance
6.15pm Networking Drink Reception kindly hosted by the Ministry of Finance
For more information, please contact Laura Cafora e: lcafora@ipfa.org