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Ethic financing and social investment A European overview INAISE : International Association of Investors in the social Economy.

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Presentation on theme: "Ethic financing and social investment A European overview INAISE : International Association of Investors in the social Economy."— Presentation transcript:

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2 Ethic financing and social investment A European overview INAISE : International Association of Investors in the social Economy

3 Created in 1989, I N A I S E has grown rapidly as the movement of social investors gained importance, volume and visibility in a number of European and non-European countries : secretariat in Brussels - to collect and disseminate information on social finance - represent the members and the social finance sector - contribute to research projects 2002 : 50 members in 19 different countries

4 Member organisations invest in the following sectors:  Environment and sustainable development: renewable energy such as wind, solar and hydro-energy; energy efficiency; organic agriculture, food processing and retailing; nature conservation; eco-building; clean technology.

5 Health-care: health centres; community care; clinics and hospitals; programmes for the disabled; preventive therapies. Social economy: co-operatives; community enterprises; employee participation; employee buy-outs; micro and small enterprise creation and development, especially among unemployed, migrants, women.

6  Social development: social housing; community housing; employment generation; social services, community transport; charities; community groups and the voluntary sector.  Education and Training: school buildings; training courses; organisational development; alternative schools.

7  Culture and arts: artists; exhibitions, theatre; film; dance; local radios.  North-South: fair trade; small-enterprise start-ups through micro credit programmes; small business training and counselling; crafts, farming, small scaled- industries.

8 Members of INAISE : 4 main categories 1. Neighbourhood savings structures 2. Banks 3. Venture capital companies 4. Micro Finance Institutions

9 1. Neighbourhood savings structures ï collection of savings made locally and investment in local projects ï advice the entrepreneur and follow the project through ï low or zero interest on the savings  low interest loans ï risk is limited : close follow up of the project

10 Société financière coopérative de la NEF Collects savings and grants short, medium or long term loans to projects Support the creation of projects in - organic farming - health care - crafts & business (benefit society in general) - ecology & environment - education, art & culture - social rehabilitation & struggle against exclusion In 1000 EUR

11 Réseau Financement Alternatif - Netwerk « cricket savings accounts »  1987 : bonus of 1% of the total amount deposited on «cricket accounts»  : fixed bonus depending on the benefit margin of the partner bank  2001Netwerk 619,734 EUR  Réseau FA EUR  2002 Réseau FA EUR  2002 : total amount deposited on cricket accounts in Walloon region & Brussels = 44.8 millions EUR

12  do not aim at profit : finance sustainable projects + are transparent organisation  banking licence  more services  select the project or sector  specific funds : wind fund, solar fund, north-south …. 8 on 10 banks member of INAISE = millions EUR (equity + entrusted funds) = 780 millions EUR (lending) 2. Banks

13 Resources and lending (31/12/2002) 8 banks member of Inaise

14 1980 : start of the bank in the Netherlands 1993 : branch in Belgium 1995 : branch in UK 2004: branch in Spain

15 Investment Funds äTriodos Green Fund : organic farming, renewable energy… äTriodos Added Values Fund: enterprises listed on the stock exchange äTriodos Fair Share Fund: micro finance banks in developing countries äTriodos Renewable Energy Fund: wind energy, solar energy

16 International Funds ä Triodos-Doen and Hivos-Triodos Fund: funding to small banks in developing countries ä Solar Development Group: solar companies or individuals in developing countries ä Triodos Venture Capital Fund: growing companies (organic food and renewable energy) ä Triodos Climate Clearing House: sustainable forestry and renewable energy projects

17 Total entrusted funds: 729 millions EUR Total lending in 2002 : = millions EUR = projects

18 3. Venture capital companies CIGALE : club of 5 to 20 persons - 5 year period invest their savings ( EUR) in equity of small enterprises network of 110 active Cigales 1500 members since 1983 : million EUR invested 2/3 in services - 1/3 in craft industry & agriculture

19 4. Micro Finance Institutions  In Europe : * ADIE, WEETU… * Crédal, Mag 2 Finance…  In developing countries : Buro Tangail (Bangladesh)

20 WEETU (UK) : micro credit to help low income women start up business  Full circle : peer lending  2 years : 100 persons involved in peer lending groups, reimbursement rate 100%  Training, networking and support  Funds : local authorities, foundations, NGO ’s, European funds...

21 Research….  : Job creation  : Upscaling social investment  2001 : Getting the framework right

22 Upscaling social investment  Publications : newsletter, conference reports, case studies, book « Banking and social cohesion »…  First European Forum on Social Investment  Discussion list : social banking, sofilaw (legal issues)  INAISE Web site : update information on member ’s activities, social finance…

23 Getting the framework right  Partnership with New Economics Foundation (UK).  Good practice of government support measures for local and micro-finance to create local employment.  Handbook : illustrate good practice and provide tools for officials and practitioners to assess the potential of different measures.  Dissemination of the results and network with regional, national and EU officials through a website

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