10 visions for social finance in 2034 in Canada

Over the past several years, social finance has become an important tool for investors, corporates, charities, and governments alike.

As this ecosystem continues to grow in Canada, we reached out to leaders to ask them to take a peek into the future and what they believe social finance will look like ten years from now.

Filsan Farah, Program Lead, VERGE Capital at Pillar Nonprofit Network

In the next decade, I envision a social finance landscape brimming with innovation, new perspectives, and a robust focus on equity-centered impact. I see a proliferation of innovative financial instruments, tools, and practices emerging from place-based community finance organizations. 

As new and emerging community finance organizations continue to grow, the sector will become even richer in perspectives. I think technology and merging it with impact, such as blockchain, will play a bigger role in democratizing access to capital and amplifying impact by enabling transparent impact tracking.

Kelly Gautier, President, Rally Assets

In 2034, businesses will capture and disclose their environmental footprint and their impact on people, because consumers, governments and regulators will demand it. 

Philanthropic investors will be required to invest in line with their mission. Institutional investors will increase their allocations to impact investing because they have evidence of both financial and impact value generation. Private investors will invest heavily in impact out of concern for the legacy of their inaction and the futures of the next generation. 

So with this movement to the mainstream, social finance, per se, will be focused on the trickiest, most catalytic, hardest-to-finance areas, where innovation, creativity and deep impact conviction will be more essential to problem-solving than ever.

Andrew Greer, Co-founder, Purppl.com

Within 10 years the climate crisis and the polycrisis will force a reckoning with extractive capital. The only finance with a social license to operate will be just, equitable, and regenerative.

Measurable social and net positive environmental returns will be required for financing and investment. Women and Indigenous people will lead the way. 

What we view as traditional financing now, will be forced into a corner with extractive payday loans. 

Wren Laing, Investment Director, McConnell Foundation

Social finance will be a mainstream part of the financial system and all finance will be inclusive.

All finance will have a dual purpose of creating positive social and environmental impact alongside competitive returns. ESG risk mitigation will not be good enough, period.

The current echo chamber within social finance, where we see the same organizations and leaders around the same tables (ourselves included), will expand to include a diverse range of investors, asset managers and corporates of every size.

All stakeholders will see the climate crisis for what it is – an existential threat to humanity – and recognize the fundamental role that financial market participants play in driving forward solutions and being transparent about their results (both negative and positive).

Amanda Mayer, COO, Lawson Foundation

Looking ahead with optimism, I envision social finance becoming mainstream, with a significant increase in “investment grade” opportunities. Institutional investors will engage more in impactful investing, while current impact investors will leverage a full range of “blended finance” tools, including grants, impact investing, traditional investing, and other innovative methods.

I hope mainstream finance will also make substantial advancements in social equity, environmental justice, and labour/governance issues, particularly given the rising focus on ESG scrutiny and greenwashing regulations.

Sandhya Nakhasi, Co-CEO, Common Future

In a decade, social finance is finance. We can remove the modifiers we use to distinguish ourselves from mainstream structures and institutions because as a society we’ve reconciled with the fact that social, environmental, community-level impacts must be accounted for in all transactions. 

Leading the charge of this change are those who have been excluded and extracted from by our financial systems – these are our Black and Indigenous leaders and other leaders of colour who have been designing and refining regenerative economic solutions in their communities. We’ve recognized the value of their organizing principles and philosophies that strive towards achieving balance across all aspects of our economy and have codified them into our systems. 

Our financial sector is now centred around collective wellbeing, not capital accumulation, as the primary goal, and we are working in earnest to find answers to the question of what is enough to keep us sustained – as communities and as a planet.

Tim Nash, Founder, Good Investing

A decade from now, I log into my credit union account and see a snapshot of my 100% impact portfolio. At a glance, I see my impact score, the faces of people I’ve helped, and my annualized rate of return. 

Walking to shop at my grocery co-op, I pass the affordable housing project I helped finance with community bonds. The world is still f**ked, but a social economy has grown roots in Canada and is starting to flower.

Julie Segal, Senior Program Manager, Climate Finance at Environmental Defence Canada

The rules of the game need to change, with new financial policies and regulations that prioritize real sustainability. Impact investing focuses on the positive – but every investment decision has an impact, and right now, too many investments have a negative impact on the planet and people. 

Harmful investments should no longer be allowed to be the norm. Investing in ways that prioritize people while bringing down greenhouse gas emissions, building climate resilience, and supporting communities through the climate transition and climate damages are essential over the next decade.

Adam Spence, CEO, SVX

In ten years, I imagine social finance has transformed mainstream finance, and more importantly, it has demonstrably helped to tackle some of our most pressing problems from housing affordability to the climate and biodiversity crisis. 

I imagine that anyone and everyone can easily and safely invest for impact across their entire portfolio through their bank, financial advisor, and/or nifty fintech firm. I imagine a large and vibrant set of well-supported, well-capitalized and stable impact intermediaries and institutions that are providing access to capital for a wide range of impact organizations, enterprises and projects that are flourishing and driving impact at a local, national and global level.

I imagine we’re part of a connected and coherent national and global network where we are learning and collaborating with our peers across Canada, the Americas, and broadly, the Global South. 

And I imagine that we’ve figured out how to effectively integrate social finance with good public policy and community action in a broad, cross-sectoral approach that marshals all of our resources to drive social, economic and environmental justice. 

Lots to imagine in ten years! Maybe eleven?

Annika Voltan, Executive Director, Impact Organizations of Nova Scotia

By 2034, social finance tools will be widely recognized and accessed by social enterprises and non-profits. 

We’ll be beyond having to describe what it is, and organizations will be able to tip the balance of power in their favour so they can implement community-led solutions with autonomy and agency. 

This freedom will generate new ideas for positive change, and people will be compensated at levels that align with the value they create.