ethic financing and social investment a european overview inaise : international association of...
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Ethic financing and social investment
A European overview
INAISE : International Association of Investors in the social Economy
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.
1992 : 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
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.
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.
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.
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.
Members of INAISE : 4 main categories
1. Neighbourhood savings structures
2. Banks
3. Venture capital companies
4. Micro Finance Institutions
1. Neighbourhood savings structures
collection of savings made locally and investment in local projects
advice the entrepreneur and follow the project through
low or zero interest on the savings low interest loans
risk is limited : close follow up of the project
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
Réseau Financement Alternatif - Netwerk« cricket savings accounts »
1987 : bonus of 1% of the total amount deposited on «cricket accounts»
1999-2002 : fixed bonus depending on the benefit margin of the partner bank
2001 Netwerk 619,734 EUR Réseau FA 371 800 EUR2002 Réseau FA 190 314 EUR
2002 : total amount deposited on cricket accounts in Walloon region & Brussels = 44.8 millions EUR
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
= 1 491 millions EUR (equity + entrusted funds) = 780 millions EUR (lending)
2. Banks
Resources and lending (31/12/2002)8 banks member of Inaise
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
Triodo
s (Neth
erlan
ds, ..
.
GLS Gem
einsc
hafts
ban..
.
Banca
Etic
a (Ita
ly)
Merk
ur (D
enmark
)
Freie G
em.(S
witzer
land)
Caisse
Des
jardin
s
Ekoba
nken
Charit
y Ban
k (UK)
Total
Resources 2002 (1000 EUR)
Credit 2002 (1000 EUR)
1980 : start of the bank in the Netherlands
1993 : branch in Belgium
1995 : branch in UK
2004: branch in Spain
Investment Funds
Triodos Green Fund : organic farming, renewable energy…
Triodos Added Values Fund: enterprises listed on the stock exchange
Triodos Fair Share Fund: micro finance banks in developing countries
Triodos Renewable Energy Fund: wind energy, solar energy
International Funds
Triodos-Doen and Hivos-Triodos Fund: funding to small banks in developing countries
Solar Development Group: solar companies or individuals in developing countries
Triodos Venture Capital Fund: growing companies (organic food and renewable energy)
Triodos Climate Clearing House: sustainable forestry and renewable energy projects
Total entrusted funds: 729 millions EUR
Total lending in 2002 : = 386 587 millions EUR = 2 704 projects
3. Venture capital companies
CIGALE :
• club of 5 to 20 persons - 5 year period
• invest their savings (8 - 45 EUR) in equity of small enterprises
• network of 110 active Cigales
• 1500 members
• since 1983 : 1.981 million EUR invested
• 2/3 in services - 1/3 in craft industry & agriculture
4. Micro Finance Institutions
In Europe : * ADIE, WEETU…* Crédal, Mag 2 Finance…
In developing countries : Buro Tangail (Bangladesh)
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...
Research….
1997-1998 : Job creation
1999-2000 : Upscaling social investment
2001 : Getting the framework right
Upscaling social investment 1999-2000
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…
www.inaise.org
Getting the framework right - 2001
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 www.localdeveurope.org