Date

01.2023

SpainNAB, Harmon and Afi Urge the Public Administration to Act as a Catalyst for Investment in the “Impact Economy”

SpainNAB, Harmon Corporate Affairs and Afi organise a session in Spain’s Congress of Deputies to call for greater public–private collaboration to advance the impact economy.

Madrid, 19 January 2023. SpainNAB, the Spanish National Advisory Board for Impact Investment; Harmon Corporate Affairs, Spain’s first consultancy specialising in non-market strategies; and Afi, a leading Spanish firm in independent consultancy and training, held an event this Thursday in the Congress of Deputies to highlight to policymakers and public institutions the need to strengthen dialogue and public–private collaboration in order to build an “impact economy.”

Under the title “Impact Economy and the Public Sector: Rethinking Investment with the Drive of the Administration,” the session brought this new economic model to the legislative sphere through a series of discussions on what impact investment is and what challenges and opportunities it presents.

Opening the event, Meritxell Batet, President of the Congress, stated that “we are in a context where concern for sustainability is increasingly crucial and permeates all areas of collective action. Rethinking market logic from the perspective of the environmental and social impact of business activity is a key challenge if we want the economy to serve the creation of a better world.” She also emphasised that “the synergies that can emerge between the public and private sectors in this direction are highly relevant today,” concluding that “those of us who hold political office—as well as those in the private sector—have a duty to reflect and to act as quickly as possible.”

The event brought together over 150 participants, including representatives from public institutions, government officials, members of the main political parties, and figures from the private sector and civil society.

Impact investment seeks to address social and environmental challenges while generating measurable, transparent, and positive outcomes through the responsible and efficient use of resources. Achieving this requires stronger public–private collaboration to mobilise finance towards this emerging economic trend.

Juan Bernal, President of SpainNAB and Managing Director of CaixaBank AM, stressed that “the transition towards an impact economy as a transformative tool is not optional, and the public sector has a fundamental role to play in ensuring its success.” He added that “SpainNAB is today a multi-sector organisation committed to strategic private-sector partners, and we must aspire to make it equally transversal across the entire parliamentary spectrum representing Spanish society.”

Increasing Investment through Public–Private Cooperation

According to the report “Impact Investment in Spain 2021,” produced by SpainNAB and the Esade Center for Social Impact, capital allocated to impact investment in Spain reached €2.4 billion in assets under management by the end of 2021—12% more than in 2020. These figures illustrate both the sector’s potential in building a new economic model and the need to continue increasing financial resources in this field.

Carmen Basagoiti, President of Harmon, noted that “events like today’s create meeting points between different political forces and allow civil society to bring an institutional collaboration perspective.” She called for “a strong commitment and push from the public sector to make this possible,” concluding that “what remained was to place the impact economy on the public agenda—and today we’ve taken that first step.”

The Public Administration plays a key role in attracting private investors to the sector and providing greater legal certainty. Key factors for the growth of impact investment include a stronger public-sector presence, the development of standardised methodologies for impact measurement and management, and an increase in institutional investors.

Public institutions can channel investment into projects aligned with societal challenges, help achieve the 2030 Agenda and sustainability strategies, and strengthen the capacity of the third and fourth sectors. Impact investment is also a central mechanism for deploying Next Generation EU Funds.

In this regard, César Cantalapiedra, Partner at Afi, observed that “public administrations now have the opportunity to design policies that support sustainable growth and employment. Spain’s receipt of a second tranche of the Recovery and Resilience Mechanism should serve to explore ways of boosting impact investment by attracting private capital through blended finance and results-based contracts, also ensuring fiscal sustainability.”

2023: A Pivotal Year for Spain in Advancing the Impact Economy

This event in the Congress marks the beginning of a key year for Spain’s leadership in promoting the impact economy, which will culminate in the GSG Global Impact Summit, to be held in Málaga on 2–3 October 2023. Organised by the Global Steering Group (GSG) and SpainNAB, the summit is the world’s leading annual gathering on impact investment.

The City Council of Málaga will play an important role in the organisation, and the city’s mayor, Francisco de la Torre, delivered the institutional closing remarks at the Congress.

Coinciding with Spain’s Presidency of the Council of the European Union, the Málaga summit will bring together international professionals and leaders to showcase how innovation and transparency are converging to channel capital flows that address urgent business, political, and social challenges. Its goal: to promote a transition towards economies that generate solutions.

Finally, SpainNAB used the event to present its #CaminoalImpacto Manifesto, aimed at individuals and institutions across the investment, business, third-sector, public-administration, academic, and media communities. The manifesto invites voluntary endorsement and commitment to advancing the “impact economy” within each actor’s field of action.

Author

Harmon

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