25.10.2018 | CSR
On 3 October, the United States Department of Veterans Affairs launched a Social Impact Bond (SIB) worth $ 5.1 million to improve employment opportunities for veterans who suffer from post-traumatic stress disorder (PTSD). BNP Paribas is co-financing the fund in partnership with the US Department of Veterans Affairs, the Commonwealth of Massachusetts, the cities of Boston and New York, and the non-profit association Social Finance Inc.
The Veterans CARE (Coordinated Approach to Recovery and Employment) project will help 480 army veterans to find a stable, quality job. It will run over 3 years in New York, Boston, Brockton and Central and Western Massachusetts. Medical centres in the participating regions, which are linked to the American Veterans Administration, will offer individual placement and support (IPS) to beneficiaries. The medical centre of Tuscaloosa in turn will coordinate and supervise the project.
Various criteria will be used to assess the SIB’s success:
“ BNP Paribas has a proven track record of investing in pay for success projects in order to drive social change across the americas. through the veterans care project, we are determined to help improve employment possibilities for us veterans living with post -traumatic stress disorder. ”
CEO of BNP Paribas CIB Americas & Head of Global Markets Americas
Based on the principle of Pay for Success, SIBs (Social Impact Bonds) rely on innovative partnerships between public authorities and the private sector to address a major social issue, improve the living conditions of the people involved, and make a positive impact on society in general. With this system, private investors finance a social project in its trial phase without any guarantee that they will get back the sums they invest. Return on investment will depend on the project’s success in terms of social impact. For each new project, specific success indicators are determined and measured by independent experts.
In line with the UN’s Sustainable Development Goals (SDG), the CSR policy at BNP Paribas is based on 4 pillars that include the financing of a positive impact economy and forms an integral part of its business development plan for 2020. In recent years, the bank has multiplied initiatives in this field:
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