from grant making to mission related investments
DESCRIPTION
Jacqueline van Voorthuizen, CEO - Zyllian Strategies - NetherlandsTRANSCRIPT
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INVESTMENT PROPOSAL FOR A BETTER WORLD 1
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INVESTMENT PROPOSAL FOR A BETTER WORLD 2
The Fortune at the Bottom of the Pyramid, C.K. Prahalad & Stuart L. Hart
Challenges
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INVESTMENT PROPOSAL FOR A BETTER WORLD 3
“If the e ntire world liv e d like North Ame ricans ,
it would take thre e plane ts e arth
to support the pre se nt world population”
Harvard Business Review, 1997Stuart Hart, “Be yond Gre e ning”
Constraints
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INVESTMENT PROPOSAL FOR A BETTER WORLD 4
Source: Worldwatch Institute, State of the World 2004
Money is not a constraint...
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INVESTMENT PROPOSAL FOR A BETTER WORLD 5
• “The ultimate bus ine ss opportunity”
• “Win-win bus ine ss mode ls”
• “Ble nding financial and social v alue”
Bron:
Doing business with the poor, 2004World Business Council for Sustainable Development
QuickTimeª en eenTIFF (ongecomprimeerd)-decompressorzijn vereist om deze afbeelding weer te geven.QuickTimeª en eenTIFF (ongecomprimeerd)-decompressorzijn vereist om deze afbeelding weer te geven.
...business opportunity neither
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INVESTMENT PROPOSAL FOR A BETTER WORLD 6
So... what’s the problem?
• Who’s behind the wheel ?
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INVESTMENT PROPOSAL FOR A BETTER WORLD 7
Another way to look at it
The market is an efficient, effective, and innovative instrument for sustainable development
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INVESTMENT PROPOSAL FOR A BETTER WORLD 8
Support
“The re are many pos itiv e ways for bus ine ss to make a diffe re nce in the liv e s of the poor – not through philanthropy , though that is also v e ry important, but through initiativ e s that, ov e r time , will he lp to build ne w marke ts .”
Kofi Annan, United Nations, Secretary General
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INVESTMENT PROPOSAL FOR A BETTER WORLD 9
EQUITYBONDS
GRANTS?
How can we bridge the gap?
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INVESTMENT PROPOSAL FOR A BETTER WORLD 10
How to bridge the gap
EQUITY(PRIVATE)
BONDSCASH
GRANTSSRI
EQUITYBONDS
SUSTAIN.PRIVATEEQUITY
SOCIALVENTURECAPITAL
VENTUREPHILAN-THROPY
MICRO-FINANCE
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INVESTMENT PROPOSAL FOR A BETTER WORLD 11
(1)Multiple bottom line portfo lio cons truction
MISSION RELATED RETURN
equity8-12%
real estate
cash
bonds
3%
6-8%
private equity15-20%
gifts & grants-100%
4-5%
FINANCIAL RETURN
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INVESTMENT PROPOSAL FOR A BETTER WORLD 12
(2)Multiple bottom line portfo lio cons truction
equity
real estate
cash
bonds
3%
4-5%
private equity
-100%
sustainable private equity
social vc
mf
15–20%
0-20%
2-5%
8-12%
6-8%
15-20%
FINANCIAL RETURN SOCIAL AND ENVIRONMENTAL RETURN
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INVESTMENT PROPOSAL FOR A BETTER WORLD 13
(3)Multiple bottom line portfo lio cons truction
SOCIAL AND ENVIRONMENTAL RETURN
FINANCIAL RETURN
equity
real estate
cash
bonds
3%
private equity
-100%
sustainable private equity
social vc
mf
15-20%
0-20%
2-5%
alternative or direct SRI
public or indirect SRI
8-12%
4-5%
6-8%
15-20%
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INVESTMENT PROPOSAL FOR A BETTER WORLD 14
Social and environmental returns
MISSION RELATED RETURN
- less child labor- clean water- clean energy- health care- education- poverty alleviation - sustainability
comparablefinancialreturns
FINANCIAL RETURN
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INVESTMENT PROPOSAL FOR A BETTER WORLD 15
Tools
• A multiple risk return profile
• A purpose budget
• The millennium development goals
• The disciplinary power of the financial market
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INVESTMENT PROPOSAL FOR A BETTER WORLD 16
The result
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INVESTMENT PROPOSAL FOR A BETTER WORLD 17