Pradeep Jethi

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Innovative financing for
social enterprises
The Social Stock Exchange
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Disclaimer
This Presentation is provided for information purposes only by the Social Stock Exchange (“SSE”) which is not
authorised by the FCA or operating as a Recognised Investment Exchange (RIE) and does not constitute an offer to sell
or an invitation or solicitation of an offer to buy any security. SSE makes no representation or warranty as to the
accuracy, reliability, or completeness of any of the information contained in this Presentation, and said information may
not be relied upon in connection with any investment or listing decision. This Presentation is provided on a confidential
basis and may not be copied, reproduced, distributed, disclosed or published, in whole or in part, to any person for any
purpose whatsoever without the prior written consent of SSE.
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Impact Investing Defined
 an investment approach seeking regulated
securities whether private or public
 intentionally seeking to create both financial
return and positive social or environmental
impact
 impact is actively measured
 typical sectors: health, education, social
housing, charity finance, sustainable
agriculture, sustainable transport, renewable
energy, clean-tech, waste/water/recycling
 an investment style, not an asset class, that
accentuates positive impact
www.socialstockexchange.com
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About the Social Stock Exchange
PM Launch at G8 Social Impact
Investment Forum

platform that aggregates impact investment
opportunities (not a transaction venue)

raise the global visibility of businesses that
generate social and environmental impact*

connect social impact businesses with global
impact investors (lower cost-of-search)

validation and articulation of social or
environmental impact

grow the number of publicly-listed social impact
businesses

retail primarily invests in publicly-traded
securities
*We describe these as ‘Social Impact Businesses’
www.socialstockexchange.com
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SSE Member Companies
Accsys Technologies Plc
Ashley House Plc
Assura Group
Places for People Group Plc
Primary Health Properties Plc
Scope
Good Energy Group Plc
Straight Plc
Halosource Inc
V22 Plc
ITM Power Plc
ValiRx Plc
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Entrepreneurs’ Needs
 improved access to finance
 visibility amongst aligned investors
 input, assistance, know-how from
experienced investors
 mission lock and control through corporate
form, authenticated impact reporting or
social objects
 enabling environment: commissioning, tax
incentives, pension fund stimuli, technical
assistance
www.socialstockexchange.com
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Investors’ Needs
 fair returns: market rates on a risk-adjusted
basis
 evidence of impact: engaged investor
relationship
 impact outcomes are actively measured
 good business plans, good management
teams, good market opportunities
 exit potential
 product and portfolio
www.socialstockexchange.com
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The SSE Proposition
 increased visibility and improved access to
capital
 public securities with a yield or growth profile
 on-going brand awareness with global impact
investors
 validation and articulation of social or
environmental impact
 opportunities universe from which to create
retail products
www.socialstockexchange.com
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SSE
Impact Investment
Social Impact Business
Traditional
Responsible
Sustainable
Thematic
Impact-First
Philanthropy
Impact only
Competitive Returns
ESG Risk Management
ESG Opportunities
High-Impact Solutions
Limited or no focus
on ESG factors of
underlying
investments
Focus on ESG risks
ranging from a wide
consideration of ESG
factors to negative
screening of harmful
products
Focus on ESG
opportunities
through investment
selection, portfolio
management and
shareholder advocacy
Focus on one or a
cluster of issue
areas where social or
environmental need
creates a commercial
growth opportunity for
market-rate or
market-beating
returns
Focus on one or a
cluster of issue
areas where social or
environmental need
requires some
financial trade-off
No regard for societal
impact
Operational practices
(ESG) do not create
negative societal
impact
Operational practices
(ESG) create some or
significant positive
societal impact
Core business model
(product or service)
generates positive
outcomes for the
population at large
Core business model
(product or service)
generates positive
outcomes for
underserved groups
No evidence
Disclosure in selfprepared CSR report
Disclosure against
ESG standards:
FTSE4Good, GRI
For SSE: mandatory
impact report using
expert providers.
Impact is measured;
intentionality is
sought through
articulation of
problem to be
solved
For SSE: mandatory
impact report using
expert providers.
Impact is
measured;
intentional model to
solve market failure
problem for
underserved
Clean energy
company;
Emerging markets
healthcare fund;
Micro-finance
structured debt fund
Accsys, PHP, Good
Energy, Straight
(SSE current or
targets)
Fund providing debt or
equity to social
enterprises and/or
trading charities.
Impact
Evidence
Impact
Intensity
Focus
Finance only
Examples
UNPRI
Global Compact
BAT, William Hill
PE firm integrating
ESG risks into
investment analysis;
Negatively-screened
‘ethical’ investment
fund
Nestle
McDonalds
For SSE: impact
report on a/the
business unit creating
societal value
“Best-in-Class” SRI
or ESG funds; Longonly public equity fund
using deep integration
of ESG to create
additional value
Unilever
Kingfisher
Focus on one or a
cluster of issue
areas where social or
environmental need
requires 100%
financial trade-off
FSE Fund, SCOPE
bond
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Get in Touch
We invite you to join us as we work together to help demonstrate that public markets
can deliver both financial and social value.
Please get in touch with SSE’s experienced team members to find out more.
Contact
Pradeep Jethi
[email protected]
Tomas Carruthers
[email protected]
Alison Fort
[email protected]
Jon Grayson
[email protected]
Serena Vento
[email protected]cialstockexchange.com
Diana Robinson
[email protected]
www.socialstockexchange.com
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