Social impact investing could herald a new era of safer road investment by making transparent the links between road safety measures and public health outcomes.
A new report by Social Finance and Impact Strategist, two leaders in policy development in the burgeoning ‘payment for success’ Social Impact Bond (SIB) market, argues that private sector financing through a road safety Social Impact Bond framework could bring new funding sources and new rigour to transport investment. The funding for the Social Impact Bonds is provided at risk by social investors whose financial return is aligned to the positive social impact of meeting pre-agreed social outcomes.
More than 1.2 million people are killed and up to ten million seriously injured on the world’s roads every year. Reducing this toll by 50% by 2030 will be the aim of a stand-alone target included in new United Nations ‘Sustainable Development Goals (SDGs)’ later this year. Published to coincide with the 3Rd International Conference on Financing for Development, the report ‘Breaking the Deadlock: A Social Impact Investment Lens on Reducing Costs of Road Trauma and Unlocking Capital for Road Safety’, commissioned by the FIA Foundation, highlights the need for increased financing for global road traffic injury prevention to achieve this target, but points out that significant improvements could be made if the billions of dollars of existing road infrastructure investment is deployed with the priority objective of realising social and financial savings from reduced injuries and fatalities.
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