Social Impact Stock Exchange

Torino Social Impact / Social impact stock exchange

The Torino Social Stock Exchange, launched by Torino Social Impact in October 2019, aims to create a capital market dedicated to businesses that intentionally, additionally, and measurably achieve positive social impact and in which transactions are based on both financial value and the value of the measured social impact.

The project stems from the desire to provide additional financing opportunities (in particular, venture capital or long-term debt) to companies that would have difficulty obtaining them today because they are characterized by a radically different value proposition than companies traditionally present in financial markets.

The Social Impact Stock Exchange is a project to create a capital market dedicated to companies that intentionally, additionally, and measurably achieve positive social impact

The simulated quotation

On 23 February 2022, the Kick-off event of the last phase of verification of the feasibility conditions for the creation of a Social Impact Exchange was held: the simulated listing.

The simulated listing consists of the accompaniment of at least 8 pilot enterprises in the process of preparation for listing by teams of specialised subjects in order to demonstrate the soundness of the starting hypotheses and identify any barriers to be removed in order to reach the final objective of creating a capital market dedicated to impact enterprises.

Specifically, a working group will be set up for each pilot company with the task of drafting a listing document that, in addition to containing promises of economic results, also highlights promises of change and expected social impact.

The companies that are participating in the trial are 8, have diversified characteristics in terms of corporate structure, legal form, sector of activity and size, have registered offices in 4 different Italian regions (Piedmont, Lombardy, Trentino Alto Adige and Emilia Romagna) and activities spread throughout the country.

For the realisation of the simulated listing process, which is expected to be completed by the end of 2022, several specialised operators have also been involved, who will intervene by providing accompanying services and pro-bono consultancy to the pilot companies during the course of the experimentation.

As part of the Social Impact Stock Exchange project, the experimentation of the simulated listing process is being carried out thanks to the contribution of the Compagnia di San Paolo Foundation and the Turin Chamber of Commerce.

The promoter committee

On Apri 26 2021, the Promoting Committee of the Social Impact Exchange, chaired by Guido Bolatto, Secretary General of the Turin Chamber of Commerce was set up, open to the membership and involvement of interested stakeholders.

The Promoters are: Paolo Biancone (University of Turin); Guido Bolatto (Turin Chamber of Commerce); Mario Calderini (Turin Social Impact); Davide Dal Maso (Avanzi Sostenibilità per Azioni); Giorgio Fiorentini (Bocconi University); Giovanni Gallo (Confcooperative); Andrea Ganelli (Leading Law); Mario Montalcini (Studio Dottori Commercialisti Associati); Paolo Mulassano (Compagnia di San Paolo); Paolo Petrucci (Legacoop Piemonte); Eleonora Rajneri (Università degli Studi del Piemonte Orientale); Roberto Randazzo (Legance); Elisa Rosso (Torino Social Impact); Raffaella Scalisi (Torino Social Impact).

Current participants: GianPaolo Badiini (Investimenti Solidali s.p.a.); Paola Bellotti (Coopfond); Pietro Bracco (AndPartners); Stefano Cacchi Pessani (Bonelli Erede); Alessandro Corbari (Nexus); Pierangelo Decisi (Sigit S.p.A.); Claudia Fiaschi (Forum Terzo Settore); Dario Prunotto (Unigens); Giuseppe Cais and Alessandro Baldo di Vinadio (Studio BGR Tax and Legal); Marella Caramazza (Cottino Social Impact Campus e Centro di competenza per la valutazione e misurazione dell’impatto sociale).

The feasibility study

Carried out in 2019 with the aim of verifying the feasibility conditions for the creation of a Social Impact Exchange, the feasibility study includes benchmarking with international experiences (London, Singapore, Spain, New York, Johannesburg), analysing the supply and demand system, identifying the access requirements and related control processes, and defining the financial sustainability model.

The working group that realised it saw the contribution of the Turin Chamber of Commerce; Compagnia di San Paolo Foundation; CRT Foundation; Tiresia International Research Centre on Social Impact of the Milan Polytechnic; Bocconi University; University of Turin; Cottino Foundation; and the company Avanzi, specialised in sustainability projects, which had already carried out a study on the subject in 2009. The best international practices of existing Social Exchanges were analysed: SSX – Social Stock Exchange (UK), IIX – Impact Investment Exchange (Singapore and Mauritius), JSSE – Jamaica Social Stock Exchange, MM – Mission Markets (USA), SVX – Canada Social Venture Connexion, Bolsa de Valores Sociais (Brazil), SASIX – South African Social Investment Exchange (South Africa), KSIX – Kenya Social Investment Exchange (Kenya), LGX – Luxembourg Green Exchange, Bolsa Social (Spain). The analysis made it possible to trace the main characteristics of these experiences and to identify strengths and weaknesses.

The international benchmark was followed by a qualitative and quantitative analysis of supply and demand to identify potential stakeholders on both fronts, attractiveness factors, investment choice factors, admission requirements, and measurement criteria. Therefore, a possible structure for a capital market for social enterprises was outlined, with the creation of ‘social’ segments of already existing markets and the inclusion of additional requirements. The legal form will not be the discriminating factor, but rather the formal declaration of the will to achieve social impact, understood as that intentionally sought with indicators established ex ante and assessable ex post and in undercapitalised areas.

The results of the feasibility study were presented on 30 September 2020 at the event Financial Markets for Impact: Model and Feasibility Study for a Social Exchange as part of the 8th CSR and Social Innovation Fair.