In a scenario of social impact investments estimated at US$ 1.1 trillion worldwide[1] and of recurring demand of investors and public policies focused on the impact economy (with these activities projected to grow in Brazil), on August 17, 2023 was published the Presidential Decree # 11,646, establishing the National Impact Economy Strategy – Enimpacto. This Decree revoked Decree # 9,977, of August 19, 2019, which already dealt about the same matter (previously called the “National Strategy for Impact Investments and Businesses”).
The purpose of Enimpacto is to articulate bodies and entities of the federal public administration, the private sector and civil society to promote an environment favorable to the impact economy, defined by the Presidential Decree as the “economic modality characterized by the balance between the search for financial results and the promotion of solutions to social and environmental problems, through ventures with a positive socio-environmental impact, which allow the regeneration, restoration and renewal of natural resources and the inclusion of communities, contributing to an inclusive, equitable and regenerative economic system”.
Under the monitoring and coordination of the Impact Economy Committee, coordinated by the Ministry of Development, Industry, Trade and Services, these are the principles of Enimpacto:
(a) the expansion of the supply of capital by mobilizing public and private resources;
(b) the increase of impact businesses by disseminating the culture of socio-environmental impact assessment, generating data that gives visibility to impact investments and businesses, supporting business development, promoting the integration of socio-environmental impact solutions into the production chains of private companies and fostering technical support to ventures in the impact economy sector;
(c) the strengthening of intermediary organizations that offer incentives and support for the development of the impact economy, working to train and educate entrepreneurs, to generate knowledge and process data, statistics and information to the sector;
(d) the promotion of an institutional and regulatory macro-environment favorable to the impact economy; and
(e) the inter-federative coordination with states and municipalities to promote the impact economy.
The actions of the Impact Economy Committee are focused on impact investment funds, training courses, startup acceleration programs, university programs and specific legislation for the sector, based on the study of successful impact businesses: financing projects for farmers’ cooperatives to recover degraded areas; housing renovations for poor communities based on innovative businesses; production and sale of environmental credits for the maintenance and development of native forests; programs to improve teacher training, with the aim of increasing learning and reducing school dropout rates; innovative solutions for access to clean energy, among others.
With a large experience in the legal assistance of M&As focused on social impact businesses, the Corporate Law team at L.O. Baptista Advogados is available to provide any information and guidance on the matter.
Co-authors: Renata Castro Veloso e Marcos Yuuki Matheus Okamoto
[1] Data released by the Ministry of Development, Industry, Trade and Services (MDIC).
