Tasks of the Centre of Expertise for Impact Investing
The key task of the Centre of Expertise for Impact Investing is to assist public sector actors in outcomes contracting. Instruments used for this purpose include the Social Impact Bond model, SIB.
The Centre of Expertise for Impact Investing launched operations in January 2020. It is part of the administrative organisation of the Ministry of Economic Affairs and Employment, but serves the entire public sector.
The essential thing about the SIB model is that the public sector determines the desired outcomes, not the method of service provision, and only pays for verifiably produced outcomes. This approach allows service providers to identify new, effective practices.
Making outcomes contracting all about proactive and preventive action helps to prevent human and environmental problems, and saves public funds.
Outcomes instead of deliverables
The Centre of Expertise helps public sector organisations to understand when to use outcomes contracting and to analyse what kind of wellbeing and economic benefits can be achieved.
Such modelling of societal benefits requires an in-depth understanding of the challenge involved; the underlying root causes and the changes needed to address them. This analysis enables the public sector to determine the appropriate indicators to verify proven outcomes, and the reward paid for such outcomes.
Support for the impact investing market
Although the main task of the Centre of Expertise is to support the public sector in outcomes contracting, it also cooperates with other key actors involved in impact investing, such as investors and service providers, to expand the impact investing market.