Sparking Financial Innovation

The Innovation Window is our springboard for transformative financial innovations that pave the way for significant advancements in impact finance. We focus on activating the potential of novel concepts that seek to influence the world positively, targeting development through the lens of the sustainable development goals. By offering both traditional and repayable grants, we lay the groundwork for projects at the critical juncture of their journey – whether they are outlining the blueprint of feasibility, proving the concept's viability, or scaling operations to reach new levels.

Our dedication is to projects that have not only the vision but also the capacity to turn into powerful catalysts for private capital mobilization towards  the Sustainable Development Goals (SDGs). Our attention is particularly centered on nations that are eligible for Official Development Assistance (ODA), where the need and potential for impactful change are most profound. It's here that we spark the flames of innovation, supporting financial innovations through feasibility studies, proof of concept, and expansion grants. Our commitment is to empower regions where our initiatives can foster the most growth and catalyze meaningful private capital mobilization towards the SDGs.

Catalyzing Scalable Growth

The Product Window is where potential meets practicality, fostering the evolution of impactful ideas into scalable realities. Here, we concentrate on expanding impact investment products by providing first loss capital to de-risk commercial private capital at scale. This critical first step reduces the barriers for subsequent private investment, transforming projects from simply viable to truly attractive for a wide range of investors.

By deploying our catalytic capital, we make strategic investments that lower risks and provide the support necessary for impactful ideas to become investment-ready and achieve growth. Our approach includes an array of financial instruments, starting with first loss investments and guarantees to safeguard and encourage private investments. As these initiatives mature, we anticipate the inclusion of comprehensive technical assistance and payments for outcomes, which will reinforce their resilience and capacity for scale.

With a vision to ignite change across a diverse spectrum of needs, our window operates with a dynamic approach. We host two calls for proposals annually, making available up to CHF 5 million for investment in each call. These calls are strategically thematic; one is dedicated to environmental and climate change imperatives, ensuring our planet's health and our collective future. The other call turns to social challenges, aiming to build resilient societies and foster the development of human capital, addressing the urgent need for social innovation and inclusion in our rapidly changing world.

Our aim is not just for good projects to survive but to thrive, by investing in them in a manner that catalyzes private investment at the necessary scale. Through the SDG Impact Finance Initiative's Product Window, we commit to not only fuelling the growth of projects but also their scale, ensuring their benefits ripple outward to create systemic change.

Shaping the Impact Ecosystem

The Framework Conditions Window is where we build the pillars of a robust impact finance landscape. This window focuses on nurturing the roots of an environment conducive to growth and innovation in impact investing. Our actions are deliberate and targeted; we grant funds and create partnerships that address the core areas necessary for a thriving ecosystem. This includes pioneering research and analyses, shaping policy development, and advocating for systemic changes that underpin the global shift towards impactful investment practices.

Our key priorities are:

• Perception of Risk: We aim to recalibrate the understanding of risk in impact investing, particularly in developing markets. By engaging with rating agencies, we advocate for assessment frameworks that acknowledge the unique aspects of risk in blended finance structures, creating a foundation for informed decision-making and trust.
• Question of Liquidity: We foster mechanisms that enhance liquidity and facilitate structured exits in the impact investing sphere. Through policy recommendations and strategic support, we seek to build a more fluid market that can adapt and respond to the evolving needs of investors and beneficiaries alike in order to transform impact investing from a niche to a widely accessible investment pool.
• Regulation & Fiduciary Duty: Our endeavor is to influence policy and adjust mandate restrictions to empower a broader spectrum of investors—from retail to large-scale pension funds—to engage with impact investing confidently and ethically.
• Definition of Impact Investing: We stand for clarity and consistency, supporting efforts to anchor a standardized definition of impact investing within regulatory and legal frameworks. This clarity is vital for market integrity and scalability.
• Impact Measurement Standardisation: Advocating for standardized metrics and methodologies is at our core, promoting efficiency and comparability that can unite the impact investing community under a universal framework.

In the policy context, a significant development is the ongoing formation of a National Advisory Board on impact investing for Switzerland. This board, set to integrate into the Global Steering Group for Impact Investing (GSG), will serve as a critical platform for dialogue and strategy for enhancing impact investing within the nation. Expected to launch by the end of 2024, the NAB will become a pivotal force in shaping activities under this window, driving forward the discussions and decisions that will strengthen Switzerland's position in the global impact investing narrative.