INVESTMENT IMPACT REPORT - PREMIUMS4GOOD 2019-2020
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Premiums4Good™ Investment Impact Report 2019-2020
Premiums4Good Investment Impact Report 2019-2020
At a glance
About QBE
QBE is listed on the Australian Securities Exchange (ASX) and headquartered in Sydney.
We employ more than 11,000 people in 27 countries. QBE is a general insurance and
reinsurance company. Overview
Across our operations, we offer commercial, personal and specialty products and risk
management solutions to our customers. Welcome5
Our purpose is to give people the confidence to achieve their ambitions. Our focus on Premiums4Good snapshot 8
sustainability, and the identification of current and emerging environmental, social and
governance (ESG) trends, is an integral part of achieving this purpose, understanding the Investment summary 2018 – 2019 10
needs of our customers and ensuring the sustainability of our own business.
Investment highlights 13
About Premiums4Good International Finance Corporation Social Bond 13
Premiums4Good is an innovative initiative that sees QBE invest everyday premiums to make International Bank for Reconstruction and Development (IBRD) 15
an extraordinary difference to communities across the globe. Sustainable Development Bonds
Through Premiums4Good, we invest customers’ premiums into investments that have Cheyne Social Impact Property Fund 17
additional social or environmental benefits at no extra cost to the customer.
Motability Operations 19
These investments include social impact bonds, social bonds, green bonds and infrastructure,
supporting a range of projects and programs that seek to create change. Ontario (province of) Green Bonds 21
From renewable energy initiatives and sustainable infrastructure, to social services and
Youth CONNECT Social Benefit Bond 23
programs to support vulnerable people and communities – Premiums4Good helps us,
together with our customers and partners, make a difference. National Housing Finance and Investment Corporation (NHFIC) 25
Social Bonds
About our Premiums4Good investment approach Kāinga Ora – Homes and Communities Wellbeing Bonds 27
Premiums4Good supports our belief that we can deliver attractive risk-adjusted returns and The Ford Foundation Social Bond, Series 202029
business value, while also seeking to deliver positive social and environmental impact.
Future Shapers Social Impact Bond31
We have a globally consistent approach to impact investment across our North American,
European and Australia Pacific operations. Benevolent Society ‘Resilient Families’ Social Benefit Bond33
To help us grow Premiums4Good, select customers can also choose to contribute more and
opt in to allocate 25% of their premiums to the initiative.
Our ambition is to grow our impact investment allocation to USD 2 billion by 2025.
QBE Insurance Group Limited | ABN 28 008 485 014
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Premiums4Good Investment Impact Report 2019-2020
The 2019-2020 Premiums4Good investment impact report again We recognise there is growing consensus that the financial services
demonstrates our leadership in the impact investment sector. This sector needs to find ways to direct capital flows into investments
report highlights the impact that our customer premiums are making that can support the transition to a lower carbon, climate-resilient
to individuals and communities across the globe. economy and the investments we make through this program
This collaborative
support this drive.
Premiums4Good is a unique initiative that sees QBE integrate
social value with business value by connecting insurance The program also provides evidence that other financial institutions
customer premiums to growing demand for impact investments. too can direct a portion of their funds to impact investments and
program strengthens Premiums4Good supports QBE’s belief that we can deliver attractive
risk-adjusted returns and business value, while also seeking to deliver
positive social and environmental impact. This collaborative program
we hope that Premiums4Good can contribute to transformation of
capital markets and long-term sustainable change.
Thank you to all our customers, partners and staff who continue to
ties with customers
strengthens ties with customers and partners and invests in projects
support this valuable program. Together we are making a difference
that drive a better future for people and the planet.
to communities across the globe.
Earlier this year, we announced that we were expanding the program
and partners and with an ambition to grow our impact investment allocation to USD Together, we’re making a difference.
2 billion by 2025. We’re nearly halfway to this target already and Yours sincerely,
continue to be encouraged by the support shown by our customers,
invests in projects that
partners and employees.
As we publish this report, we have USD 904 million invested across
66 investments including social impact bonds, social bonds, green
drive a better future for bonds and infrastructure - supporting a range of initiatives from
renewable energy and sustainable infrastructure, to social services
and programs to support vulnerable people and communities.
people and the planet.
Gary Brader
Premiums4Good has also been key in our response to the COVID-19
Group Chief Investment Officer
pandemic. We’ve been able to direct funding to a number of
QBE Insurance Group
global initiatives that are supporting vulnerable individuals and
communities hit hard by the health and economic impact of the virus.
We’re financing healthcare initiatives, microfinance opportunities for
women and small business owners and financial support for charities
around the globe.
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Premiums4Good Investment Impact Report 2019-2020
Premiums4Good snapshot Key areas of geographical impact
Premiums4Good has a global reach. The below map indicates key geographical regions invested in through its pool of
assets as at June 2020. Significantly, the Premiums4Good investment pool invests in developing markets across the globe.
Ambition to grow
66 securities
our impact investments to
USD 2
billion
invested in by QBE as part of Europe
Premiums4Good in June 2020,
up from 43 in June 2019
by 2025
11 impact areas
United
Canada Kingdom
USD 904
Asia
United States
million
India
Latin America
total invested in Premiums4Good invested in by QBE as part of Africa
Australia
at the end of June 2020 Premiums4Good in June 2020
New Zealand
Industry recognition Sustainable Development Goals
Aligned with 17 Sustainable Development Goals and the Global Priorities to 2030
We support the aims and objectives of the United Nations Sustainable Development Goals (SDGs) which arose through
collaboration between governments, civil society, the private sector and academia. The SDGs seek to address the world’s most
pressing environmental and social challenges and form part of a wider 2030 Agenda for Sustainable Development. At QBE we
AWARDS aligned our sustainability agenda to support advancement of these global goals. As a universal agreement to work towards a
better future, the SDGs align closely with our own purpose to give people the confidence to achieve their ambitions.
Banksia Foundation Shared Value Project Finder Awards Ethical Corporation’s global
Sustainability Awards 2019 Shared Value Awards Responsible Business Awards
Green Insurer
Banksia Large Business Finalist, Australia of the Year, Australia Finalist
Award, Finalist, United Kingdom, 2019
Australia, 2019
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Premiums4Good Investment Impact Report 2019-2020
Investment summary
2019-2020
As the Premiums4Good program grows, we have continued to invest in a way that shows the potential
of capital markets to direct funds to areas of both near-term and long-term resilience for our community,
customers and partners.
Over the year, we’ve increased the value of investments from USD440 million at the end of 2019, to USD904 million.
In alignment with QBE’s wider commitment to addressing climate risk, we continue to invest in renewable energy projects and other
initiatives around the globe that are designed to address the physical and transition risks and opportunities of climate change.
Since March 2020, we have made more than USD40 million in new investments which support private and public sector businesses
and programs in countries and communities exposed to the economic and health effects of the COVID-19 pandemic.
Highlights of this period included:
• Investment into an International Finance Corporation social • Most recently, we invested in the Ford Foundation social bond that
bond that is funding initiatives to support those impacted by the is providing support to charitable organisations globally that have
COVID-19 pandemic. The proceeds of IFC’s social bonds support seen their funding diminish due to the COVID-19 pandemic. Grants
vulnerable communities and help people gain access to essential are focussed on building resilience in the non-profit sector and
services, including healthcare and microfinance, as well as stabilising and strengthening the social justice sector.
financing opportunities for women and small business owners.
As the Premiums4Good program and impact investing continues
• Premiums4Good invested in a number of World Bank (IBRD) bonds to develop we revised our impact framework, with review from the
which support sustainable development and economic growth, Classification of Social Investments Committee (COSI), to Moderate,
and more recently which aim to support health and wellbeing and High and Deep impact categories to reflect the growing types of
support the global response to COVID-19. deeper impact investments we seek.
• We added to investments with Community Development Finance Since 2014, we have added our voice, as a global institutional
Institutions in the US like The Reinvestment Fund (TRF), and Low investor, to support the demand for impact investments at a scale.
Income Investment Fund (LIIF) through our investment in the LIIF Further development of these types of investments will enable us
Sustainability Bond. LIIF supports poverty alleviation through to efficiently invest for positive impact. We continue to engage with
access to housing, and patient capital for borrowers in lower socio- government, industry and community sector partners to advance the
economic urban communities in the US. transformation of capital markets.
• Further attention to social and affordable housing across the globe, In 2019-2020, we shared the Premiums4Good story with other
including Cheyne Social Housing Fund (UK), National Housing financial services organisations at the Global Impact Investing
Finance Investment Corporation (NHFIC) in Australia and in New Network, UN PRI, and the Asia Pacific Impact Summit among
Zealand through Kāinga Ora (formerly Housing New Zealand). others. We provided input to the Australian Federal Government
Department of Social Services, and the Australian Social Impact
• Motability Operations continues to support financial inclusion and
Investing Taskforce, and the UNDP SDG Impact draft standards which
access to transportation and independence to thousands of people
are advancing impact practice in the green, social and sustainability
with a disability and their carers across the UK.
(GSS) bond market and in private equity. These efforts are important
• Increased investments in the growing issuance of green and to support the alignment of financial flows towards impact and
social bonds funding renewable energy, energy efficiency and achieving the UN Sustainable Development Goals by 2030.
clean transportation in Australia, UK, and Asia. For example,
The intended positive outcomes of these investments showcases how
improving energy efficiency and clean energy in Ontario,
these investments are changing lives and helping us support people
Canada, through continued investment in the provincial
in the communities we operate in while also delivering attractive, risk-
government’s green bond program.
adjusted financial returns.
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Investment summary 2019-2020 Premiums4Good Investment Impact Report 2019-2020
Securities and investment totals 2015–2020
Premiums4Good Investments Total investment in qualifying
securities USD million
Total number of securities
Impact area and location of impact as at June 30 2019 USD 145m* 2015 6*
Australia and Europe Developing
New Zealand and UK North America markets Total
Environment
Food & Agriculture 1 1
Resource Efficiency, Recycling, Re-use & Conservation 1 1
Sustainable Energy 4 7 9 20
Total 4 7 9 2 22 USD 360m* 2016 18*
Social
Education & Employment 1 1
Financial Inclusion 2 1 3
Health 1 1 2
Housing & Social Real Estate 4 1 1 6
Social Care & Provision of Community Services 1 1 3 5
Social Inclusion, Diversity & Gender 1 1
Urban & Community Development 3 3
USD 455m* 2017 26*
Total 6 4 9 2 21
Grand total 10 11 18 4 43
Impact area and location of impact as at June 30 2020
Australia and Europe North Developing
Global New Zealand and UK America Asia markets Total USD 440m* 2018 32*
Environment
Food & Agriculture 1 1
Resource Efficiency, Recycling, Re-use & Conservation 1 1
Sustainable Energy 2 8 9 12 31
Water 1 1 2
Total 3 8 9 12 1 2 35
Social USD 633m** 2019 43**
Education & Employment 2 2
Financial Inclusion 1 3 1 5
Health 2 1 1 4
Housing & Social Real Estate 6 1 2 9
Social Care & Provision of Community Services 1 1 3 5
Social Inclusion, Diversity & Gender 1 1 2
Urban & Community Development 1 3 4
Total 3 9 5 10 1 3 31 USD 904m** 2020 66**
Grand total 6 17 14 22 2 5 66
Primary impact areas, impact areas, geographies and Sustainable Development Goals in this report are mapped and categorised by QBE in line with our QBE impact investment definitions
and classifications. Please note that individual investments or investees may classify these differently. *Figures as at 30 December. **Figures as at 30 June.
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Investment highlights Premiums4Good Investment Impact Report 2019-2020
International Finance Corporation
Social Bond
Case study: Mali Shi (Inclusive Finance and Agribusiness 2019)
Primary impact area:
Social
Impact area:
Financial Inclusion
Commencement date:
2020
Geographic location of impact:
Global
SDG alignment:
IFC was the first issuer to bring a social bond IFC has been a lamplighter in the
to market after COVID-19 began to spread sustainable bonds market through its
globally, pricing a USD 1 billion benchmark legacy issuances as well as efforts to create
global bond – its largest ever social bond best practices and market standards. Since
– on the same date that the World Health 2016, IFC has chaired the Social Bond
Organisation declared the virus a pandemic. Working Group which governs updates to
Despite market volatility, the deal gathered the Social Bond Principles.
exceptional investor interest of over USD
In addition, with overwhelming interest
3.4 billion, demonstrating that investors
about financing avenues for corporates
are keenly interested in supporting social
during these difficult times, IFC published
outcomes in this environment. Since its
a Social Bonds Case study to illustrate
inaugural issuance in 2017, IFC has now
In light of COVID-19 and the how issuers from various industries in Building agricultural for approximately 20 percent of the Together, the financing will enable Mali Shi
raised a total of USD 3 billion through 30
worldwide social and economic the private sector can use social bonds to global supply of shea. Shea butter is used to build the country’s first active modern
social bonds across 10 currencies. productivity is critical for Mali,
raise financing to combat the crisis. This as an alternative to cocoa butter in the shea butter processing plant, increasing
challenges of the coronavirus, which ranked 182nd out of 188
As coronavirus disrupts emerging markets/ additional guidance demonstrates that the cosmetics and food industries. A lack of incomes for the 120,000 shea producers
social bonds are now front and developing countries, social bonds can Social Bonds Principles are immediately countries on the 2018 United technology and modern industry means who supply nuts to the company. Over 95
center of the thematic bond offer an avenue for public and private applicable to efforts addressing the Nations Human Development that Mali produces virtually no industrial percent of these producers are women,
market. Demand is higher than sectors to access vital capital for healthcare COVID-19 pandemic. shea butter. Most of Mali’s shea nuts are for whom the secure livelihood is critical.
sustaining jobs, and economic recovery.
Index. Ninety percent of poor
sold raw or processed locally into low- The income provides families with critical
ever as social bonds hold the Improving access to finance, technology
IFC is proactively educating investors of
people in Mali live in rural quality artisanal shea butter, keeping the funds for school fees for children and
keys to unlocking the benefits for the benefits of changing capital markets
and markets for women is a key focus for
towards achieving positive social and areas, and drought, instability country on the fringes of the lucrative and household expenses.
under-served communities in the IFC, with proceeds of social bonds going
environmental impact through these and conflict have increased the fast-growing industrial shea butter market.
As part of IFC’s work towards
to projects and lending that address For a conflict-affected country like Mali,
developing world. financial products. IFC is leading dialogue incidence of poverty. strengthening Mali’s ability to produce
barriers for participation by women in where over 42 percent of the population
about frameworks and transparency about industrial shea butter locally, IFC will
the economy. In many parts of the world, lives in poverty, this is an opportunity
IFC, a member of the World Bank Group, is impact reporting to investors, including, Mali Shi is a nut processing company offer training in business skills, finance,
good-quality jobs and access to assets are lost – especially for the approximately one
the largest global development institution with the support of the International in Mali that produces shea butter. The and management to members of 100
out of reach for millions of women. Lack of million mostly poor, rural women who
focused exclusively on the private sector. Capital Market Association and private project is expected to increase the women-led cooperatives that work
safe and affordable transport, violence and work in Mali’s shea value chain.
sector partners, as the new Chair of the incomes of the individual women nut with Mali Shi. IFC will also help the
The proceeds of IFC’s Social Bonds support disproportionate care responsibilities can
Green, Social and Sustainability Bonds collectors that will supply the company IFC and program partners provided a company improve energy efficiency,
vulnerable communities and help people restrict access to jobs and hinder prosperity.
Steering Committee. loan of EUR 2.5 million to Mali Shi – a environmental and social management,
gain access to essential services, including The disruptions of COVID-19 amplify many Mali is the world’s second-largest
healthcare and microfinance as well as shea nut processing company based on traceability of its products and
of these existing inequalities. For women producer of the shea nut and accounts
creating opportunities for women and small the outskirts of Mali’s capital, Bamako. international food safety standards.
entrepreneurs, access to finance is a strong
business owners. enabler of success.
Quick f
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Investment highlights Premiums4Good Investment Impact Report 2019-2020
International Bank for Reconstruction and
Development (IBRD) Sustainable Development Bonds
Indonesia: improvement in solid waste management
Primary impact area:
Social, Environment
to support regional and metropolitan cities
Impact area: The project aims to increase the proportion of the population in selected urban
Water, Health
areas who have regular household waste collection, increased capacity for landfill
and solid waste disposal, and ensuring that the beneficiaries of these programs
Geographic location of impact:
are largely women. By improving solid waste management to support regional
Global
and metropolitan cities, it will improve drainage, reduce flooding risk, and reduce
plastics and waste which ends up in the ocean - affecting the global fishing
Investment commencement:
2020 industry and livelihoods.
SDG alignment:
Securing funding for health and
wellbeing projects has become ever
more urgent with the emergence of
the COVID-19 virus. International The World Bank (International Bank Health and Wellbeing Oceans & Water
for Reconstruction and Development,
Bank for Reconstruction and IBRD) operates as a global development
Development (IBRD) is a member cooperative owned by 189 nations and
of the World Bank Group. IBRD has been the world’s largest source of
development finance for the past 70 years.
bonds support the financing of a The IBRD bonds support the financing 3-5% of global GDP is derived from the
It provides its members with financing,
range of sustainable development expertise and coordination services so of a range of sustainable development oceans, providing livelihoods and an
projects and programs in member they can achieve equitable and sustainable projects and programs in member countries, important source of food. Further, oceans
economic growth. including health. and coastal vegetation helps to regulate
countries, including health and
global climate.
wellbeing, and more recently All financing is directed towards the World A second bond that QBE invested in was part
Bank’s two main goals: to end extreme of the IBRD’s effort to raise awareness about Less than 2% of the world’s oceans are
the country-level response to
poverty and promote shared prosperity. the institution’s health programs, with an protected. Threats to oceans and life below
detect and respond to COVID-19. emphasis on how the IBRD is working with water include the destruction of marine
In addition to this, they support QBE invested in a number of IBRD bonds member countries to support their efforts habitats, overfishing and pollution including
which support sustainable development and to prevent, detect, and respond to the rapid plastics. Warming waters and emissions are
sustainable livelihoods and food economic growth, and more recently which spread of COVID-19. causing sea level rises, coral bleaching and
through the improved ecological aim to support health and wellbeing, and stronger storm surges, affecting coastal
health of oceans and waterways. support countries response to COVID-19. habitats as well as livelihoods.
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Investment highlights Premiums4Good Investment Impact Report 2019-2020
Cheyne Social Impact Property Fund
Case study: Accessible homes improving lives
Primary impact area:
Social
Impact area:
Housing & Social Real Estate
Geographic location of impact:
UK
Investment commencement:
2018
SDG alignment:
The Fund’s recent social impact review for properties providing bespoke housing,
including modifications, for people with learning disabilities identified ‘compelling
evidence that the Fund is having a real impact on individual lives, enabling meaningful
improvements to the health, wellbeing, relationships and independence of people with
learning disabilities, as well as improvement in the lives of their families.’
The Fund investment has had an impact for the people through improved accessibility,
as well as people feeling more settled, having more freedom – all of which are
associated with happiness, confidence and sociability.
Access to affordable, secure, and Two residents, Joe and Emily, ‘had all but stopped walking in their previous home’ and
suitable housing is an important their mobility improved as a result of living in the property with widened hallways
determinant of health, and is and levelled floors. Joe’s family believed that had Joe remained living in the previous
home, he would have stopped walking altogether: “going back to that time, he lost his
an important foundation for
confidence in walking. He’d got to hold onto something. Where he lived, there wasn’t
participation in employment and room for his walker, and so he was going from chair to table to door frame.”
community. Poor quality housing
Similarly, Emily’s father observed how his daughter is now able to walk more freely
has detrimental effects on both around the home, where Emily had previously been reliant on an electric chair.
for previously homeless adults, adult social To date, the Fund has invested in 882
physical and mental health. care and supported living for people with homes across the UK. Cheyne will QBE’s investment in the Fund “It has got a nice, wide hallway. Emily can walk with support, but if it was narrower, then
The financial stress related to physical and/or learning disabilities. deliver 389 new build homes which are has allowed us to address the the support staff would have to be walking behind her or in front of her, or not walking
maintaining secure housing and allocated for affordable, sub-market greater-than-ever need for with her, but it’s wide enough to be able to do that. ...In the past, she was using her
Cheyne’s Impact Real Estate team acquires long-term, affordable housing
and private tenures; and purchased 155 electric chair much more. Now, they’ve been able to do more walking with her. Her
lack of affordable housing may or builds properties and then leases them to
street properties which are leased to local in the UK. It’s more important walking is much better than it was.”
amplify poor mental health. social sector organisations at affordable rates.
organisations to provide tenants with than ever to develop secure
and affordable housing – and A physically accessible home also offers a safer environment for people such as Charlie,
Increasing supply of affordable housing supported living (care), and stables homes
The Cheyne Social Impact Property Fund close the gap between supply who suffer from seizures.
supports a wide span of people in the to those at risk of harm or homelessness.
was launched to help tackle chronic community, including key workers, by and growing demand Charlie moved out of his family home into a property established for residents with
shortages of housing for disadvantaged More than 70% of properties purchased
increasing supply of housing under ethical limited mobility. Moving to an accessible property was vital in mitigating the risk to his
groups and address the challenge of social or built by the Fund have supported
market rents. Further, by improving the life during seizures, compared to the limited access in their family home. Not only does
and affordable housing. affordable housing purposes (i.e. those
supply of affordable homes, the fund also the presence of at least two staff on site now make it safer to manage the seizures, the
that are somewhat below market rent) and
Cheyne works with organisations that supports reducing the costs that local accessible layout of the property also enables emergency services workers to attend to
support housing supply for people such Stuart Fiertz
are delivering services such as social Council authorities may pay to fulfil duties to Charlie at his bedside, when needed.
as key workers - in locations as diverse as Co-Founder and
housing, elderly additional care, housing provide homelessness prevention and relief.
Sheffield, Bristol, Luton and Barnet. Head of Responsible Investment
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Investment highlights Premiums4Good Investment Impact Report 2019-2020
Motability Operations
Case study: Owen’s Story
Primary impact area:
Social
Impact area:
Financial Inclusion
Geographic location of impact:
UK
Investment commencement:
2010, 2019
SDG alignment:
Motorsport fan and YouTuber Owen has been a Motability Scheme customer since
he was five years old. Now aged 22, and driving himself, Owen believes that the
Scheme offers “excellent peace of mind”.
Owen has spina bifida, so has reduced mobility in his legs. His friends and family
members often ask him how he drives, they think it’s ‘magical’ he explains, “I’ve
thought about posting videos on my YouTube channel explaining how I drive and
how the Scheme works.”
“My car allows me to do all the things I want to, to go out and see friends, go to
motorsport events and stay independent.”
Case study: Bianca’s Story
Access to reliable transportation
enables independence, choice
and control. Motability Operations
delivers affordable leasing to
more than 600,000 disabled
people in the UK.
“The investments by institutions
Motability Operations (MO) operates
like QBE supports our ability
the Motability Scheme which enables
to operate the Motability
disabled people to exchange certain
Scheme sustainably which in
mobility allowances to lease a new car,
turn means we can continue
Wheelchair Accessible Vehicle, scooter
to enhance the lives of
or powered wheelchair, providing worry- The Motability Scheme has given Bianca and her family a new lease of life,
disabled people across the
free independence and meeting their enabling them to continue to go on journeys and adventures together. Bianca
UK by providing reliable and
transportation needs. people and their families benefit from the products, which in turn may have lower has a five-year-old son Anthony, who has cerebral palsy. Bianca explains how the
worry-free solutions for their
mobility available through the Scheme; from running costs. Scheme has allowed them to spend time together as a family -
Around a third of eligible people in the transportation needs.”
everyday journeys to the shops or doing with Anthony’s brother and sister.
UK choose to use their Disability Living MO’s business model is designed to ensure
the school run, to accessing healthcare,
Allowance or Personal Independence their operation is stable and sustainable in “They didn’t just take into account that I have a disabled child, they took into
education and employment.
Payment to lease a Motability Scheme car the long term. This enables them to provide account my whole family.”
which comes with a worry-free package MO’s customers are keen to look for customers with sustained affordability
of insurance, maintenance, breakdown greener choices and as such, MO offers a throughout the economic cycle. All profit Dominic Hart “The Motability Scheme has made a massive difference to my life, we wouldn’t be
assistance and an allowance of 60,000 range of lower-emission vehicles including is retained in the Scheme for the benefit Head of Treasury at able to go on the journeys and adventures we go on without the Scheme.”
miles. Today, over 600,000 disabled hybrids, combined fuel and new technology of customers. Motability Operations.
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Ontario (province of) Green Bonds
Case study:
Primary impact area: Clean Transportation
Environment
Impact area:
Sustainable Energy
Geographic location of impact:
N America
Investment commencement:
2017, 2019
SDG alignment:
The Eglinton Crosstown LRT
project is a $5.3 billion (2010 $)
investment by the Government
of Ontario to expand transit in
Toronto and is currently under
construction with scheduled
completion in 2022. The Eglinton
Crosstown LRT was selected in
2014 as the first green project
to receive funding from the
inaugural Green Bond issue and
“Since its start in 2014 until now, financed in subsequent green
Improving access to public
Ontario’s Green Bond program
transport, new mobility options bonds issued by the Province.
has evolved and will continue
and improving energy efficiency to evolve to reflect market The new LRT line will bring 19 new kilometres
are central to improving the developments. Going forward, of rapid transit to Toronto, connecting
we expect Green Bonds to Mount Dennis in the west to Toronto Transit
liveability of our cities. The Commission’s (TTC) Kennedy Station in the
continue to have an important
Province of Ontario Green Bond role in our borrowing program. east, and will include a 10 km underground
program helps Ontario finance Funding from partners such tunnel in its central section between Keele
as QBE has allowed us to help Street and Laird Avenue.
transit and other environmentally
finance clean transportation,
friendly projects across It will have 25 stations and stops, link to
energy efficiency and
54 bus routes, three subway stations and
the Province. conservation, and climate
three GO Transit lines. It is anticipated to
adaptation and resilience
be up to 60 per cent faster than today’s
Projects funded under the program can projects.”
existing bus corridor service. In addition
include clean transportation, energy
to moving people across the city more
efficiency and conservation, clean energy
quickly, the Eglinton Crosstown LRT will
and technology (such as smart grid
ease traffic and congestion by providing a
infrastructure and storage and renewables), QBE is invested in two of the province’s the Eglington Crosstown Light Rail Transit Healthcare Hamilton – West Fifth Campus, St. reliable travel alternative. The LRT vehicles
forestry, agriculture and land management, green bonds issued since 2014. Together, (LRT), Finch West LRT and GO Expansion. Joseph’s Healthcare London (Parkwood) and Mike Manning are electric powered and produce near
and climate adaptation and resilience the bonds finance clean transportation and In addition, the bonds finance energy St. Thomas, and the ErinoakKids Centre for Executive Director & Chief Investment zero emissions, making them the right
projects. The financing excludes fossil fuel energy efficiency and conservation projects. efficiency projects such as the Centre for Treatment and Development. Officer, Ontario Financing Authority choice for the environment.
and nuclear energy projects. Some of the transportation projects include Addiction and Mental Health, St. Joseph’s
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Youth CONNECT Social Benefit Bond
Image credit: Leapfrog Investments Case study: Ben’s Story
Primary impact area:
Social
Impact area: “We thank QBE for their
Housing & Social Real Estate
investment, which is helping
to reduce youth homelessness
Geographic location of impact:
in Queensland. Through their
Queensland, Australia
support for this world-first
Social Benefit Bond, QBE is
Investment commencement:
2017 helping to create brighter
futures for young people
SDG alignment: who would otherwise have
nowhere to turn.”
Ben* was referred to the Youth CONNECT program early in 2019 by
a youth homelessness service. At the time he was couch surfing
and sleeping rough.
Gary Edwards
After about 6 months in the program, Ben was able to move into a Youth CONNECT
Chief Executive Officer
self-contained one-bedroom unit in Brisbane. Since moving into his own home,
Churches of Christ in
Queensland his case manager noted a huge improvement in Ben’s situation, with him now also
starting casual employment at the local Hungry Jacks outlet.
Ben has an extensive placement history from his time in statutory care. He was from
his mother when he was about six years old, and subsequently had “too many places
to count.” He was placed in different foster care and residential homes, as well as
being placed in youth detention on several occasions, although he has not offended
now for three years.
Six years ago, Ben’s mother passed way. He expresses deep grief and sadness that he
was not given the opportunity to know his mother better. Ben identifies as Aboriginal,
but does not know his Traditional Clan Group or any details surrounding his culture.
His disconnection from his cultural identity has added to his sense of loss in relation
to his mother, and while he is aware of a few family members, he has fallen out of
An estimated half a million The Youth CONNECT SBB provides a options and followed by assistance with The program launched in 2018 contact with the majority of his family and is unsure how to reach out and reconnect
‘housing-first’ program for young people finding employment, education, personal and by the end of Year 2, 121 young
Queenslanders have experienced with them.
aged 15-25 who are leaving statutory care development and life skills. Youth at risk people have engaged with the
homelessness in their lifetime, and at risk of homelessness. The objective of falling into homelessness with few program at various stages of their Ben did have a kinship care placement with his uncle, but it was during a time he
with many of these aged under is to develop the resilience of young supports are supported into an independent, journey to independence and was committing criminal offences. He has deep shame surrounding his behaviour
people who are homeless or at risk of connected future. successful adulthood. at this time and what his uncle must think of him, which has prevented him from
25 years. Youth CONNECT
homelessness. reaching out.
Social Benefit Bond addresses By building resilience and independent Youth CONNECT participants include
Youth CONNECT is delivered by Churches living skills for young people, a high proportion of Aboriginal Ben is reluctant to participate in cultural events within the community, battles with
homelessness for young people
of Christ in Queensland, in partnership with the program aims to: and Torres Strait Islander young ongoing depression, and is socially anxious and struggles to speak to new people.
leaving out-of-home care or the Queensland Government. The ‘housing- Ben’s case manager has observed that he is talented at drawing and has suggested
people, reflecting the ongoing
juvenile detention and will help • Reduce incidence of homelessness
first’ approach supports young people find over-representation of Aboriginal they try an art class together run by a local Aboriginal group. Ben does not think he is
or reliance upon specialist
more than 300 people over homefulness—a stable home environment and Torres Strait Islander children good enough to go and expresses embarrassment over the praise.
homelessness services
where they can feel at home, have agency and young people who are in, or
six years in three locations Ben’s story provides an insight into the everyday struggle of young people who have
and experience independence—so that they • Reduce interactions with the who have been in, statutory care.
in Queensland. experienced significant trauma to feel a sense of connection and self-worth. These
can then focus on employment, education, justice system Youth CONNECT programming for young people are disconnected from their family and their history, and this impacts
work-readiness and personal development. these young people aims to embed
• Improve mental and physical health on their own sense of self. For young people who are Aboriginal and Torres Strait
an understanding of the strength of Islander the disconnection from their cultural identity exacerbates their sense of loss.
The Youth CONNECT Program provides
• Support social and cultural connectedness culture for indigenous young people.
early intervention and support for individual
The Youth CONNECT team have committed to progressing Cultural Strengths Plans
participants, and involves the finding of • Improve education and for all Aboriginal and Torres Strait Islander young people.
appropriate, stable and supported housing employment opportunities.
* Case studies have been de-identified. Images are not of the individual
| 23 | PREVIOUS NEXT | 24 |Investment highlights Premiums4Good Investment Impact Report 2019-2020
National Housing Finance and Investment
Corporation (NHFIC) Social Bonds
Case study: Unity Housing Company Limited, South Australia
Unity Housing Company
Primary impact area:
Social
Impact area:
Housing & Social Real Estate
Geographic location of impact:
Australia
Investment commencement:
2019
SDG alignment:
In Australia housing supply “Through our social bond
issuances, investors have the
has not kept up with demand, opportunity to invest in AAA
particularly in major metropolitan rated, Government-guaranteed
areas, impacting the ability of social bonds, helping to address Arron’s home is a building block of independence
the significant and prevailing
Australians to find affordable Living with cerebral palsy has not discouraged Arron from enjoying an independent and
financing gap in Australia’s
accommodation. The Australian community housing sector. The rewarding life. Having a two-bedroom home provided through Unity to call his home, with
Government established the first two social bonds have generous living space and 24/7 support located nearby, enables Arron to have a fulfilling
assisted community housing and empowering life.
National Housing Finance and
providers in saving around “Compared to where I was, my living room now used to be my whole apartment in the other
Investment Corporation (NHFIC)
AUD 93 million in interest – place so this is a lot better,” he says. “My journey has been interesting. I’ve had a lot of
in 2018 to improve housing helping them increase their external support and a lot of encouragement. I’ve got some really good carers. I’ve started
outcomes for all Australians. operational capacity, support going out a bit more now that I have better conditions for living.”
further developments and
The NHFIC operates the Affordable Housing Tenants and residents in social housing QBE supported both of NHFIC’s bonds new builds, develop disability Arron attended Underdale High School then went on to study naturopathy at a school of
Bond Aggregator - which provides cheaper include low-income tenants, young people, accommodation and provide natural medicine, where he received three individual certificates. “I did it to improve my
issued in 2019 which enable investment
and longer-term secured finance for people with disabilities, older women over community programs to further knowledge,” he says. “I don’t use it much now, but I still retain the knowledge.”
in social and affordable housing at an
Australian Community Housing Providers 55, and vulnerable and disadvantaged institutional investor scale. By the end support those most in need.” Arron’s cat, Tina, is a constant and affectionate support. “I got her from the RSPCA and
(CHPs) by issuing bonds in Australia’s debt families and individuals. of 2019, the combination of both bond she’s nearly 21 years old,” he says. “She’s a very annoying but lovable cat.”
capital markets. issuances brought the total value of loans
Wrap around services for tenants range from Arron’s attitude to life is “pretty straight forward and to the point”. “I don’t mince my words,”
In 2019, NHFIC issued two social bonds to youth services and employment services, the NHFIC Board had approved to more than
he smiles. “It’s got me into trouble over the years but my outlook on life is pretty positive –
support loans to CHPs which increase the financial and literacy skills training, training AUD 830 million, supporting the delivery
as long as I have got a roof over my head, food in the house and Tina is taken care of.
supply and quality of social and affordable and employment counselling, to mental of more than 1000 new, and 3600 existing, I enjoy my surroundings, where I live and my everyday life.”
Nathan Dal Bon
housing, maintenance of social housing and health support and services to address social and affordable homes, ultimately
social wraparound services. domestic and family violence. benefiting tenants on lower incomes. NHFIC CEO *Unity Housing is one of the CHPs which have received finance through NHFIC.
| 25 | PREVIOUS NEXT | 26 |Investment highlights Premiums4Good Investment Impact Report 2019-2020
Kāinga Ora – Homes and Communities
Wellbeing Bonds (previously Housing New Zealand)
Case study: Te Waka Urungi – Intensive Tenancy Management
Primary impact area:
Social
Impact area:
Housing & Social Real Estate
Geographic location of impact:
New Zealand
Investment commencement:
2019, 2020
SDG alignment:
Kāinga Ora
Increased supply of social and
Kāinga Ora’s role is to
affordable housing is vital for contribute to sustainable,
meeting the needs of the most Kāinga Ora inclusive and thriving Intensive Tenancy Management focuses on complicated
vulnerable New Zealanders and a communities. QBE’s investment tenancy cases that require a greater level of care and attention.
in our Wellbeing bond
crucial step in moving individuals program helps us achieve
By pulling together a wide network of different support
In leading the Government’s priorities for development and retrofit for housing stock.
towards building better lives. our social, environmental and services, the Intensive Tenancy Management team can
housing and urban development, Kāinga The bonds also support environmental
Ora provides emergency, transitional and outcomes: through energy-efficient housing wellbeing objectives. Kāinga understand and address the issues tenants are facing in order
Kāinga Ora supports people across New Ora has a significant task ahead
affordable housing. It provides social designs and construction, the bond is set to turn lives around.
Zealand to have good quality, affordable in delivering housing and
housing services for high risk, high need to reduce emissions and waste – building
homes, and live in strong, healthy support to those in need and
people, delivers public housing and works greener, more sustainable communities. Jessica, a 24-year-old mother with two children, Ruby and Jacob, who were in
communities. Kāinga Ora’s approach to at risk. We see the importance
towards sustaining tenancies, and where it the care of their grandparents, lived with their whole family in the same home.
sustainability is aligned with the New Zealand The financing, over 4 years, hopes to see of impact investing continuing
can move people to housing independence Jessica had physical and mental health issues and had made multiple suicide
Government’s commitments including the 5,295 people housed with new and/or to grow and evolve with the
and social and economic participation in New attempts. There was a very challenging family dynamic and a lack of support
UN Paris Agreement and the Sustainable retrofitted social housing accommodation; investor community requiring
Zealand society. from other agencies.
Development Goals (SDGs), and its focus on 192 new and/or upgraded facilities for positive socio-economic
wellbeing as a measure of the Government’s Kāinga Ora provides services to a cross supported housing for customers that need outcomes to align with The Intensive Tenancy Management team advocated for Jessica, for the
Living Standards Framework (LSF). section of the community, including those intensive support to continue to live in their investment mandates. necessary support from other agencies, and referred Jessica for help getting work
with health issues, disabilities and those homes; and 49 new and/or upgraded facilities and built a trusting relationship. By building these connections across existing
Kāinga Ora Homes and Communities
that are socially disconnected. Kāinga Ora that include mobility concerns. agencies and departments, vulnerable people such as Jessica are engaged with
(incorporating Housing New Zealand)
provides tailored services and housing suitable and existing government programs, rather than presenting at times of
operates as the NZ public housing landlord, In addition, wrap-around support will be
solutions for individuals and families in need crisis. Jessica now has her own space to focus on her health, with other agencies
and is focussed on partnering with the provided for customers identified as most at
of additional support. and whānau also providing support. She is more assertive, confident about the
development community, Māori community, risk of poor wellbeing outcomes. Since first
Sam Direen future and focused on getting her children back in her care.
and local and central government on urban The Wellbeing Bonds are issued under ICMA established (October 2018), intensive tenancy
Treasurer
development projects. Sustainability Bond framework, and fund management has supported 520 tenants.
| 27 | PREVIOUS NEXT | 28 |Investment highlights Premiums4Good Investment Impact Report 2019-2020
The Ford Foundation Social Bond, Series 2020
Primary impact area:
Social
Impact area:
Provision of Community &
Social Services
Geographic location of impact:
North America, global
Investment commencement:
2020
SDG alignment:
The COVID-19 pandemic presents an existential threat to the global
economy, relations among nations and global health. In the United
States, the pandemic has brought into sharp relief the results of decades
of growing inequality in our economics, politics, and culture. The
pandemic will likely accelerate some of the negative economic trends
that serve to compound these inequities and the sense of hopelessness
that an increasing number of Americans feel.
The communities that are hardest hit by the pandemic must have a voice in influencing
recovery and reimagining a “new normal” that is more just and inclusive. Social justice and
nonprofit organizations play a vital role in organising and advocating on behalf of these
Following the rapid economic effect in early on supporting visionary leaders and in coming years directed at building communities, but they are already experiencing significant harm from the economic fallout of
The non-profit or third sector 2020 of the COVID-19 virus, and the impact organisations working in key social justice the resilience in the NFP sector and the pandemic. According to a Nonprofit Finance Fund survey in 2019, only 25% of nonprofits
provides an important connector this had on the non-profit sector due to the issues: civic engagement and government; stabilising and strengthening the sector’. have at least six months of cash reserves on hand. On average, the unrestricted net assets of
between government and drop in charitable giving, and deepening gender, racial and ethnic justice, technology black-led organisations are 76% smaller than the assets of their white-led counterparts. In the
This is a commercial social bond
need due to the recession, Ford Foundation and society; natural resources and climate U.S., nonprofits employ more than 10 percent of the private workforce or approximately 12.3
philanthropic funders and under- issued a USD1 billion social bond offering to change; future of workers; creativity and free
issuance by Ford Foundation, rated AAA
(Moodys)/AAA (S&P), and issued in line million people. The economic demise of nonprofit organisations will have a ripple effect on
served populations, people and increase grant funding and support viability expression (US Only), and cities and states overall jobless rate in the U.S that is formidable.
with the ICMA Social Bond Principles.
communities in need, to address of charitable organisations. The proceeds of (US only).
Security-holders receive interest coupon
the bond will be allocated over the course Now more than ever, the Ford Foundation is committed to ensuring that key social justice
important issues of inequality and The Foundation ‘believes the non-profit payment, with a 30- and 50-year term. organisations protecting and promoting the rights and priorities of vulnerable and
of 2020-2022. These Special Allocation
social justice, ‘yet more than half Grants are focussed on building resilience
sector has been severely harmed by the
The funds will help stabilize and marginalised communities have the resources to be strong and resilient during the challenging
COVID-19 pandemic and its economic fallout,
of these organisations struggle to in the non-profit sector and stabilising and strengthen the non-profit sector along days ahead. The proceeds from the social bond will provide some of this key funding.
and that non-profit financial organisations
become financially sustainable strengthening the social justice sector.
will require substantial financial resources
with building the long-term resilience of Ford Foundation
social justice organisations in the US and
and meet that demand’. The Ford Foundation, founded in 1936, is one to continue to carry out their charitable
around the world.
of the largest philanthropic organisations missions. In response, the Foundation seeks
globally. The Ford Foundation focuses to substantially increase its grant making
| 29 | PREVIOUS NEXT | 30 |Investment highlights Premiums4Good Investment Impact Report 2019-2020
Future Shapers Social Impact Bond
Key Results
Sheffield Futures Over the course of the program, Future
Case study: Trevor’s Story
Primary impact area:
Social Shapers worked with 1319 young people
across Sheffield. The program supported
Impact area: both young women and young men: 43
Education & Employment percent of young people on the program
were female and 57 percent were male.
Geographic location of impact:
Some of the highlights:
UK
Investment commencement: 451
2015 young people have moved
on to college
Investment maturity:
2019
542
SDG alignment: young people have achieved
entry level qualifications so far
Trevor, 16, from Sheffield, was becoming increasingly isolated
722 and excluded from society with low school attendance and
achieved Level 1 qualifications
problems at home brought about by the dysfunction that can
92 be caused for families when living in poverty, until a Future
Shapers mentor stepped in to help Trevor get back on track
young people are now in
employment and manage his home life and education.
“QBE’s Premiums4Good initiative
Young people taking part in Future Shapers financed the Future Shapers program,
which helps vulnerable young people
783 When the Future Shapers mentor first met Trevor, he was very isolated, spending
most of his time on his own in his room using computers and not attending school
Sheffield have been given a better chance have shown an improvement
improve their educational attainment consistently. The Future Shapers mentor met with Trevor several times to build a
of finding a job by developing their skills, in behaviour and
and access to work. trusting relationship and look at ways to help Trevor engage with society again.
attitudes and understanding as they move
from education to the world of work. 915 have shown an improvement “My mentor really helped me to get back to school by helping me to set up a plan
with school for my return” he says.
“Through the focus on outcomes in in attitude.
Personal mentors offered support tailored the impact bond, Sheffield Futures,
Future Shapers supports the social to the young people’s specific needs. This
With arguments at home disrupting Trevor’s attendance at school further, the
worked with young people over three
and educational development of Future Shapers mentor continued to visit Trevor and during this time helped him
could include helping them to grow in years to establish a good foundation in
Ongoing impact with techniques to deal with his situation at home including tips for staying calm
young people in South Yorkshire, confidence, improve school attendance, gain education, employment or training, to
rather than getting angry. The disruption at home coincided with his year 11 exams
qualifications, take part in extra-curricular reduce the number of young people in
UK, helping them to get the While the social impact bond and the and the Future Shapers mentor worked with Trevor to ensure Trevor attended all
activities, socialise with other young people, Sheffield facing an uncertain future.
most out of life. Targeting 14 to program has come to an end, young his exams. At this point, Trevor was doing well at school and school said that he
look for work and more.
people who have been supported was their most improved student.
17-year-olds, the program was “We are so proud of the achievements of through the three-year program have
The program targeted young people
supported by the social impact who are at risk of not being in education, all of the young people on the program. continued to progress, and positive Unfortunately, just as things were starting to look up, events took a turn for the
Our mentors have seen young people worse and Trevor’s relationship with his family completely broke down. Trevor
bond program between 2015-2018. employment or training and dropping benefits for the young people involved
face their fears and gain the confidence have continued. was given a place to live within a young people’s housing project and his mentor
The Future Shapers program ‘through to cracks’ in the economy. This
needed to try new things; whether this helped and supported him to settle in there and to attend college.
identified young people who have poor
was financed through a social attendance at or have been excluded from is the high ropes, making friends or For example, in January 2020, a more
than 100 people in the Future Shapers Sometime later, Trevor is still living in the housing project and has gained new
impact bond between 2015-2018 school, who have experience in the youth learning something new and improving
life skills such as managing money and cooking his own food. Trevor is now
their educational attainment “ gained employment through local job
in the Youth Engagement Fund. justice system, are ‘looked after’, have
fairs with employers. managing his life well, the conflicts with his family have reduced, and he has
special educational needs or disability, or are improved his attendance at college.
Sheffield Futures delivered the
teen parents.
program, commissioned by the “My life has gained stability that I would never have achieved without the support
The project was launched in 2015 as a Gail Gibbons
Department of Work and Pensions of my Future Shapers mentor” he says.
social impact bond, under which investors CEO Sheffield Futures
(DWP), and local co-commissioner finance the project and receive payments “For the first time I feel like I’m in a position to look forward and start to build a future.”
Sheffield Council. based on results.
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