WBCSD and Inclusive Business - status as of December 2012

InclusiveBusinessAs of December 2012

Overview• About WBCSD• Development  Context  Business role & contribution  WBCSD Development Focus Area• Inclusive Business  Concept & examples  WBCSD‟s role, resources & tools, and regional engagement 2

About WBCSDA CEO-led organization of forward-thinking companies that galvanizes the global business community to create a sustainable future for business, society and the environment 3

WBCSD Regional Network NHO (Norway) n n Vernadsky Foundation (Russia) Danish CSBD n BCSD UK n n Responsible Business Forum (Poland) n econsense (Germany) Business Europe (Belgium) n The EXCEL Partnership (Canada) n BCSD Austria n n BCSD Hungary n Kazakhstan BCSD EpE (France) n n BCSD Mongolia n BCSD Croatia CGLI (USA/Canada) n FE BCSD Spain n FFA (Spain) n n BCSD Turkey n SEV-BCSD Greece n BCSD Korea BCSD Portugal n China BCSD n n Nippon US BCSD n APEQUE (Algeria) n Keidanren (Japan) AEEC (Egypt) n BCSD Pakistan n CII India n n BCSD Taiwan BCSD UAE n BCSD El Salvador n BEC (Hong Kong) BCSD Mexico n TERI BCSD India nCentraRSE (Guatemala) n nn BCSD Honduras BCSD Thailand n n Vietnam BCSD uniRSE (Nicaragua) n n BCSD Curaçao AED (Costa Rica) n n PBE (Philippines) n n BCSD Venezuela BCSD Sri Lanka n IntegraRSE (Panama) n BCSD Colombia BCSD Malaysia n BCSD Ecuador n n Indonesia BCSD PERU 2021 n n BCSD Brazil BCSD Bolivia n BCSD Zimbabwe n BCSD Paraguay n FEMA (Mozambique) n BCA Australia n NBI (South Africa) n n BCSD Uruguay Accion RSE (Chile) n n BCSD Argentina BCSD New Zealand n 4

Development context• Historic shift of economic and politicalpower• Growth needed to reduce poverty andmeet aspirations of growing middleclasses in emerging economies• Current development path will lead Source: The Economist, 6 August 2011to exponential increase of demandfor energy and natural resources– growing pressure on world‟secosystems• Need for a transition towardsa more inclusive, low-carbonand resource efficient economy

Business role in Development• Business:  Engine of economic growth and employment, source of technology and innovation  Critical role in providing solutions towards transitioning to a more sustainable and equitable world  Social inclusion & inclusive growth Read more in WBCSD’s “Business & Development” report  Resource efficiency (water, forests, etc.)  Low-carbon technologies

The business caseWhy should global business invest in sustainable solutions to poverty & development challenges?• Business cannot succeed in societies that fail  Stable and prosperous societies make for better business opportunities• Risk management  License to operate, innovate and grow• Business opportunities & growth markets  Technological and infrastructural investments, inclusive business

Development Focus Area – ObjectivesCreate awareness• Providing thought leadership on the role of business in a changinggeopolitical and economic context• Promoting the WBCSD tools that enhance companies‟ awarenessand capacity to respond to development risks and opportunitiesAdvocate• Advocating business messages and solutions at relevantinternational processes and regional initiatives• Profiling business contributions to development and sharing bestpractice through WBCSD communications channelsCatalyze action• Demonstrating leadership in action on the ground• Implementing special initiatives, as requested by groups ofmember companies

Leadership: Development Focus Area Core Team Company FACT members BG Group John Grant BP Iain Conn Brisa Vasco de Mello GDF Suez Françoise Guichard General Electric John Rice  ITC  Y.C. Deveshwar Masisa Roberto Salas (chair) SC Johnson Steven Stanbrook Toyota Dr. Fujio Cho Vodafone Matthew Kirk

Working Group: 245 persons from 90companies and 20 Regional Network partners

Work program Action Inclusive Business Tools Awareness Development Thought Initiatives Focus Area Leadership Steering WBCSD Regional committee members Network (FACT) Communi-Advocacy Advocacy cations

Inclusive Business• Term coined by WBCSD in 2005• Sustainable business solutions that expand access to goods, services, and livelihood opportunities for low-income communities in commercially viable ways  Direct employment  Targeted development of suppliers, distributors, retailers, service providers  Provision of affordable goods and services that meet basic needs for food, water, housing, health care  Enhanced access to key development enablers such as energy, communications, financing and insurance

WBCSD model: going beyond philanthropy and CSR New business models SUPPLYProducts and services Business Fulfillment of basic needsthat meet the needs of poorer e.g. water and sanitation, access to developmentcommunities energy, shelter, food, education, & connectivity Socio-economic Successive upgrading leading benefit Local employment to demand for goods and job creation , local markets and services resilience to economic shocks DEMAND Purchasing power

What is the “win-win”? Value for business: Value for low-income INNOVATION, GROWTH, populations: GREATER COMPETITIVENESS ACCESS, CHOICE, and• Generating profits OPPORTUNITY• Developing new markets • Meeting basic needs• Creating innovation • Enabling them to be more• Expanding the labor pool productive• Strengthening supply • Increasing incomes chains • Empowering communities

Manifold examples from WBCSD members• S.C. Johnson, Natura, Unilever, Coca-Cola, DuPont, PepsiCo, Mondi, Bayer: sourcing of raw materials from small-scale suppliers• DSM, BASF, Unilever, P&G, Akzo Nobel: food fortification (vitamins, minerals)• Vodafone , Nokia: financial transactions via mobile phone platforms• Coca-Cola, Unilever, P&G: innovative distribution models and products• Anglo American, BHP Billiton, BP: investment in enterprise dev.• Holcim, CEMEX: affordable housing• Deutsche Bank, Allianz: microcredits and microinsurance• Schneider Electric, GDF SUEZ, Philips, Shell, EPM, Grundfos, Novozymes: affordable access to energy, water

WBCSD and Inclusive Business• Illustrate best practices, lessons learned, success factors• Develop toolkits to support awareness raising and implementation• Advocacy and business perspectives to key development platforms and actors

WBCSD toolsMapping of available tools & resources toinitiate, develop and scale up InclusiveBusiness models– Available at www.inclusivebusiness.org/tools“The Inclusive Business Challenge”– Introduces challenges, drivers and principles of Inclusive Business– Presents good practice examples along the value chain– Identifies risks and opportunities in building Inclusive Business through interactive simulation activity– Suggests ways to integrate Inclusive Business into company strategy– Facilitation guide– Available in 4 languages at www.wbcsd.org/web/ibchallenge.htm

Recent outputs & activities – 1• Information and communication technology – An enabler for inclusive business solutions  Displays best practice cases across industry sectors, and highlights opportunities for and barriers to achieving further scale  Final output of WBCSD Technology Enablers Initiative (2011)  Platform for companies from different industry sectors to explore opportunities for catalyzing inclusive business models leveraging ICT

Recent outputs & activities – 2• Positioning Inclusive Business at Rio+20 (June 2012)  Inclusive Business session during “Business Day”  Corporate Sustainability Forum  Seeing Inclusive Business “in action” – field trip www.inclusive-business.org/rio20/

Recent outputs & activities – 3• Inclusive Business blog –  Keeps track of companies‟ experiences and lessons in designing and implementing inclusive business ventures  Numerous links to external resources, cases, videos, and tools – aim: “learning by sharing” www.inclusive-business.org

Recent outputs & activities – 4• WBCSD annual meeting in Seoul (early November 2012)  Inclusive business roundtable  Inclusive business is about increasing the size of the wallet, not about fighting for a larger share of a small walletwww.inclusive-business.org/2012/11/wbcsd-seoul-meeting.html

Recent outputs & activities – 5League of Intrapreneurs competition  Launched by Ashoka & Accenture  One of the partners: WBCSD  Top 15 entrants: media & press recognition, consulting support  Entry deadline: January 15, 2013 www.inclusive-business.org/2012/09/ league-of-intrapreneurs.html

Key Inclusive Business challenges for WBCSD• Mobilizing new companies• Moving from „nice stories‟ to real examples of value creation• Facilitate B2B partnerships• How can WBCSD…  …help create a “snowball effect” withinthe business sector?  …support and complement the efforts of what is already being done at company and country level?

Promoting action on the ground• Inclusive business as a means to advance the inclusive growth agenda• In close cooperation with WBCSD‟s Regional Network partners and their member companies – aimed at supporting local initiatives and brokering ventures• Key precondition: local business leadership• Activities carried out in Africa, Asia, Latin America

WBCSD-SNV Alliance for Inclusive Business• Strategic collaboration 2006-2010 in 9 Latin American countries, incl. WBCSD‟s Regional Network partners in-country  Awareness-raising and capacity building  Action through inclusive business brokering  Advocacy to improve framework conditions at national level for this type of ventures• 300+ business leaders from 100+ (inter)national companies engaged• 40+ inclusive business ventures implemented across the region• Sectors of activity: supply chain opportunities in agricultural sector (cocoa, coffee, corn, dairy products), furniture makers, affrodable housing, microinsurance and mobile banking, forestry, biofuels• Also active in development of policy frameworks (Ecuador re. job creation, Central America re. biofuels)• Key learnings, success factors, and case stories featured in 2010 publication Inclusive Business: Creating Value in Latin America

Latin America• Virtual & business-led platform created in 2009• Chaired by Roberto Salas, CEO, Masisa• Promotes and facilitates exchanges, advocacy, learning, and action• Convenes & engages WBCSD members, Regional Network partners and their member companies across industries• Institutional backing from 14 Regional Network partners  Endorsed a shared vision on the role of business in reducing poverty

Current outreach• ~650 company representatives across Latin America Chairmen & CEOs Members of company boards Vice Presidents Managers of - Corporate Affairs - Sustainability - CSR - Communications

Areas of work – 1Advocacy• National executive-level meetings - Cartagena, Buenos Aires, Santiago, São Paulo, Lima, Guayaquil, Washington DC, Mexico City, PanamaCapacity building• 5-month e-learning program (June-November 2012) in Spanish  Organizational change, business model innovation, financial aspects, impact assessment• Workshops promoting the application of WBCSD tools (Measuring Impact Framework, etc.)

Areas of work – 2Action• Peer to peer networking with Regional Network partners, experts and academics• Collaboration with Inter-American Development Bank (IDB)  Technical assistance, partial credit guarantees, feasibility studiesOutreach & Communications• Quarterly executive update• Website www.reni-wbcsd.org to facilitate exchange of information, monitor progress of activities of RENI and its members & partners

Asia• WBCSD partnership with Asian Development Bank (ADB) in context of ADB‟s inclusive business initiative  Technical assistance project in 10 target countries (a.o. India, Indonesia, Pakistan, Philippines, and Vietnam)  Market and capital market surveys, enterprise feasibility studies, information sharing• In partnership with a.o. • WBCSD Regional Network partners in Vietnam, Indonesia, India • SNV Netherlands Development Organization, long- standing WBCSD ally on inclusive business

AsiaVietnam • ADB Investment Forum held in April 2011 a.o. with private sector, investment funds, Vietnamese government, and Vietnam BCSDIndonesia • Inclusive business workstream created by Indonesia BCSDIndia • Local expertise & workshops on “Sustainable & Inclusive Business Model Innovation”

Africa• Main focus: awareness raising and advocacy• Workshops in October 2010 in South Africa and Zimbabwe, in collaboration with Regional Network partners• May 2011: multi-partner event in Cape Town, on sidelines of World Economic Forum meeting  Focused on strategies for overcoming barriers to financing inclusive business initiatives

www.wbcsd.orgwww.inclusive-business.orgFilippo Veglioveglio@wbcsd.org+41 22 839 31 08

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