Schwab Foundation for Social Entrepreneurship Annual Report 2024 2025

Outcome-based finance As of 2025, the outcome-based and impact- linked funding ecosystem has facilitated the allocation of over $185 billion towards a myriad of impactful initiatives based on the impact they have achieved. While the merits of outcome- based financing (OBF) are evident, its full-scale implementation and universal adoption encounter challenges. In 2024, the Schwab Foundation launched the Redefining Value: Innovative Finance for Development initiative to highlight avenues for scaling outcome-based funding, specifically by mobilizing the private sector. The project is funded and supported by the Center for Social Value Enhancement Studies, the corporate foundation of the South Korean K Group. The initiative explores the 10-year horizon in this space by highlighting innovative concepts for assigning economic value to impact or making impact outcomes tradeable (and through that, more fungible for investors). As part of a multilateral session at the Annual Meeting in Davos in January 2025, the project provided an analysis of existing OBF mechanisms that lend themselves to private-sector mobilization. The outcomes of this discussion and a six-month consultation process with over 100 organizations in the outcome-based funding space are captured in the report Beyond Compliance: Embedding Impact through Innovative Finance. The initiative highlights scenarios under which impact could be formalized, traded and economically valued. In June, the foundation published a research paper about tradeable impact, titled Redefining Value: From Outcome- Based Funding to Tradeable Impact, which also features the white paper: A Regenerative Monetary System for Impact Credits as a step- change innovation that could unlock an economy driven by verified, community-driven impact. Since the project’s launch, more than 100 leading organizations in outcome-based funding and tradeable impact outcomes have signed up to join its advisory group. The foundation secured the support of Rockefeller Philanthropy Advisors to deliver this project. Learn more about the initiative here. Social procurement The Schwab Foundation has been building on the momentum for social procurement in Europe and expanding it to other regions, starting with Latin America. With the support and guidance of local partners and alliance members, the efforts have focused on integrating the principles of social procurement into corporate value chains. In January 2024, the Schwab Foundation engaged with SAP to support its efforts to convene national roundtables for social procurement in the US, India and Brazil. It has also partnered with 18 organizations to collectively publish the State of Social Procurement in January 2025, creating insights based on 150,000 new data points on supply chain events gathered by the tech company Prewave. The digital publication was accessed by over 10,000 readers and includes 10 country studies, an assessment of the legal framework for social procurement, insights into the business case for social procurement, and an interactive dashboard to explore supply chain events by region and industry. Read more about social procurement here. 28 Schwab Foundation Annual Report 2024–2025