Social Impact Bond Ticino – Advisory Board

Lugano – From May 2016 SBE has taken steps to establish a working group with the aim of creating a Social Impact Bond (SIB) in Ticino to solve a social or environmental issue on the territory. The working table or Advisory Board is constituted by Mr Daniele Lotti, CEO of the Electric Company Sopracenerina, Mr. Giovanni Vergani, CEO of Addwise, Mr. Gianluca Colombo, Professor of Management and Entrepreneurship, University of Italian Switzerland, Mr. Alberto Stival, Deputy Director of the Centro Studi Bancari and responsible in Ticino for Swiss Sustainable Finance, and Ms. Samantha Caccamo, CEO of Social Business Earth.

A Social Impact Bond was launched in Bern in 2015 with the aim of integrating refugees and asylum seekers into work. A group of businessmen led by the President of Fokus Bern, Peter Stämpfli, supported the initiative and the SIB has raised CHF 2.7 M from non-profit foundations and organizations. The objective of the SIB in Bern is to increase the employment rate of refugees and asylum seekers by 20-30% over the next five years.

The financial instrument has been designed by Marc Baumann of Invethos with the aspiration to obtain precise and measurable results. In fact, if the achievement of these results falls between 95% and 105% of the target, Canton Bern will pay the benefits provided and will pay a bonus at the end of the pilot project, following a bonus malus system. Private investors will perceive a measurement variable return proportional to the level of the overarching objectives without exceeding 5% when going above 40% of the targets. The maximum loss to investors if there is a failure to achieve targets is 4.9%. It is worth mentioning that the service provider also operates with a bonus malus system. Max bonus 1.5% Max malus -1.5%

The issue of work placement of refugees was chosen by Canton Bern. Following the example set by Canton Bern, the Advisory Board of the SIB in Ticino will collaborate with the Canton to identify a social or environmental problem to address and solve with the creation of a sustainable and innovative financial instrument. Such instrument will have a social impact by leveraging on the power of sustainability and entrepreneurship.

The Advisory Board of the SIB in Ticino meets regularly and is open to welcome new members who support the initiative.