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Innovative finance

Social Impact Bonds for Labour Market Inclusion

A collaboration between DRC Integration, two Danish municipalities – Viborg and Herning – and the Poul Due Jensen Foundation has set out to develop a new social investment model for labour market inclusion.

A social investment model that supports:

Positive social impact
Economic resilience

The project supports unemployed persons with non-western backgrounds who have been unemployed for a long period of time and live in Viborg and Herning. This is a group that does not benefit sufficiently from the current offerings in Denmark. The project runs from 2020 – 2022. The ambition is that a minimum of 50% of participants will become partially or fully employed through the duration of the project, and that the development of the investment model will lead to several new investable social impact projects with DRC and partners.

The municipalities will identify the unemployed persons, who will then participate in a tailor-made program based on DRC’s Business Training Program combined with the methodology of ‘Individual Placement and Support’ (IPS).

Based on this program, a Social Impact Bond (SIB) model will be developed focusing on two tracks: Documenting both the social impact and the economic effects. The latter will notably be primarily supported through longer-term cost savings made possible through the new model, which can support a social investment model.

The project will be documented and assessed in collaboration with the consultancy firm COWI, which will analyze the value of investing in individually planned programs. Legal experts from Kammeradvokaten will offer their advice on the legal framework that can support the investment model, and the Center for Public Innovation supporting the dissemination of learnings and results from the program.



Poul Due Jensens Fond
Poul Due Jensens Fond
Viborg municipality
Viborg municipality
Herning municipality
Herning municipality
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