Nicolas Schmit, Minister for Labour, Employment and the Social and Solidarity Economy and Patrick Nickels, president of the National Credit and Investment Institution, public-law banking institution, signed an agreement at the end of November for the creation of the legal status of Société d'impact sociétal - SIS (Societal Impact Company - SIC). In this way, the state and the SNCI are committed, through this new status, to carrying out information and communication actions in order to raise awareness among SICs about the credit instruments offered by the SNCI, in particular those aimed at SMEs. They thus wish to consult with the representatives of the social and solidarity economy on the applicable models in order to further encourage the development of the social and solidarity economy in Luxembourg.
What is a Societal Impact Company?
The SIC legal form not only aims to ensure the sound financial management of companies in the social and solidarity economy, but also the primacy of the social or societal aim over the distribution of profits. Companies in the social and solidarity economy that opt for the SIC legal form and which meet the SNCI's eligibility requirements will have access to financing instruments from the latter. The following types of organisations are eligible: non-profits working in the social and solidarity economy, foundations and cooperatives as well as project leaders who want to launch socially innovative activities, for example in the field of sustainable finance.
6zero1, the first social impact company
6zero1 was founded in 2016 and has become the very first social company in Luxembourg to be set up in the form of a SIC. The agreement on the SIC legal form was signed at the company's offices in Differdange. As the first incubator for social companies in the country, this young company was founded by a joint initiative between the Ministry of Labour, Employment and the Social and Solidarity Economy, the Fondation du Grand-Duc et de la Grande-Duchesse (Grand Duke and Grand Duchess Foundation) and the Union luxembourgeoise de l'économie sociale et solidaire (Luxembourgish Union for the Social and Solidarity Economy). To date the incubator has around fifteen social entrepreneurs.
(Source: Press release from the Ministry of Labour, Employment and the Social and Solidarity Economy)