Impact investing and social security – ISSA report

A report by the International Social Security Association (ISSA) examines how the strategic use of social security funds can contribute to simultaneously strengthen the financial sustainability of social security systems and support socio-economic resilience and climate action.

The report Impact investing and the future of social security was first released in connection with the World Social Security Forum 2025, which also saw the release of updated ISSA Guidelines on investment of social security funds, with a new section on the socio-economic dimension of social protection. This underscores the growing importance of innovative investment approaches in strengthening social protection systems in a rapidly changing global context.

Prepared by the ISSA Technical Commission on Investment of Social Security Funds, the report analyses how impact investing can complement traditional investment principles of safety, liquidity and yield by intentionally generating measurable social and environmental outcomes alongside financial returns. It highlights the potential for social security institutions to play a more active role in supporting development, employment creation and the just transition, while safeguarding their core mandate.

Aligning investment strategies with social security objectives

Drawing on international experience and examples from ISSA members, the report shows how impact investing can address key challenges facing social security systems, including climate-related risks, demographic change and labour market transformation. It highlights how well-designed impact investments can strengthen long-term sustainability by expanding the contribution base, supporting economic formalization and reducing future social and environmental costs.

The report also places impact investing within a broader continuum that includes environmental, social and governance (ESG) considerations and socially responsible investment (SRI), while emphasizing the distinct added value of intentional, results-oriented investment strategies tailored to social security mandates.

Part of a broader ISSA knowledge agenda

The publication builds on work on the investment of social security funds and sustainable social protection financing. This includes ISSA events such as the International Conference of Social Security Actuaries, Statisticians and Investment Specialists, a technical seminar, and a number of investment webinars.

These activities reflect the ISSA's commitment to supporting its members in navigating increasingly complex investment environments while remaining anchored in social security values.