INVESTMENT PROPOSAL FOR A BETTER WORLD 1

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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“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

INVESTMENT PROPOSAL FOR A BETTER WORLD 4

Source: Worldwatch Institute, State of the World 2004

Money is not a constraint...

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• “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

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...business opportunity neither

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So... what’s the problem?

• Who’s behind the wheel ?

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Another way to look at it

The market is an efficient, effective, and innovative instrument for sustainable development

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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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EQUITYBONDS

GRANTS?

How can we bridge the gap?

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How to bridge the gap

EQUITY(PRIVATE)

BONDSCASH

GRANTSSRI

EQUITYBONDS

SUSTAIN.PRIVATEEQUITY

SOCIALVENTURECAPITAL

VENTUREPHILAN-THROPY

MICRO-FINANCE

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(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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(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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(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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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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Tools

• A multiple risk return profile

• A purpose budget

• The millennium development goals

• The disciplinary power of the financial market

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The result

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