Crosscutting_Knowledge pieces

1. EP’s Green Growth Strategy & Impact
Measurement Framework
March 2017
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2. • Definitions: Green Growth & “Green”
• The Green Impact Framework
• GG Business Case
• Our Sectoral Metrics
• Capturing Green Impact
• Mainstreaming GG within EP
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Outline

3. 3
DEFINITIONS

4. 4
Low carbon, climate-resilient, resource efficient
(land, water, energy)
PEPE Business Case & LogFrame

5. 5
• OECD (2013): Economic growth that puts
human development at the centre while
ensuring that natural assets continue to
provide the resources and environmental
services to support sustainable development.
• EKDN (2011): Tackling climate change, low-
carbon growth, valuing natural capital,
strengthening communities & habitats,
equitable growth
Other sources

6. 6
“Economic growth that puts human
development at the centre and which is: low
carbon, climate-resilient, climate-smart, and
resource efficient (land, water, energy, raw
material, waste); maintains or enhances the
health of biodiversity and ecosystems and eco-
system services; and promotes environmentally
friendly and sustainable production and
consumption behaviours”
EP’s definition of Green Growth

7. In the context of the effort partners are
making in their journey to environmental
sustainability
7
Use of the term “green”
Non-compliance
Compliance
Beyond
compliance
Integrated
strategy
Purpose/Mission

8. 8
GREEN IMPACT
FRAMEWORK

9. 9
GREEN GROWTH STRATEGY
GREEN IMPACT METRICS*
GREEN THEORY OF CHANGE
COLLECTING DATA & CALCULATING GI
DETERMINING PRACTICE CHANGE
Our approach…

10. M1
System/Process
E1
P
M2
M P1
W1
SW
W E
Eth Eel Ere
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M: Material input upstream
M1: Material wasted
M2: Material fed into system
W: Water used by the system
W1: Wastewater generated
E: Energy; E1: Energy wasted
P: Product; P1: EOL Product
SW: Solid waste to dumpsites
A: Air in
A1: Emissions out
A1
A
Search for metrics: Material &
energy flows

11. 11
No. Metric Description Unit of Measure
1 Reduction of Green House Gas (GHG)
emissions
t CO2e
2 Generation of Renewable Energy kWh
3 Energy Demand Reduction kWh
4 Recycling and Composting of Materials t
5 Avoidance of Waste to Dump-sites t
6 Water Intensity Reduction m3
7 Chemical Intensity Reduction t
EP’s Green Impact Metrics*

12. EP’s GG metrics and relevant SDGs

13. 13Johan Rockström (2009)
The 9 planetary boundaries & EP’s
GG metrics
Green marks mean our
metrics have direct
relevance; yellow marks
mean indirect relevance.

14. 14
BUSINESS CASE FOR GG

15. Drivers of Green Growth
MARKET
(Buyers)
BUSINESS
(Cost saving)
FINANCE
(Credit/equity)
REGULATION
(Licence)
Drivers of
GG

16. A 3-tier approach to green/ing
interventions
Green Growth
August 2016
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Manage risk
Save cost
Increase revenue

17. 17
Broad, green theory of change
Investment in
eco-efficiency
Partial de-
coupling
Lower
footprint +
lower cost
“green”
sales
Investment in
sustainable
business models
Complete
de-
coupling*
Sustainable
products
“green &
ethical”
sales

18. 18
SECTORAL METRICS

19. • Chemical Intensity Reduction
• Water Intensity Reduction
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Priority metrics for CTA

20. • Chemical Intensity Reduction
• Water Intensity Reduction
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Priority metrics for LAL

21. • Reduction of Waste
• Chemical Intensity Reduction
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Priority metrics for FAV

22. 22
CAPTURING
GREEN IMPACT (GI)

23. 23
Start with Green TOC
Influence Intervention: IG & IC
Monitor
Calculate GI & Attribute
Input for Scale-up
The process…
IG= Intervention Guide; IC= EP’s Investment Committee

24. • GI is determined by comparing
Baseline to End-line performance
of the assigned metric
• Two values: Estimated & Actual
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Determining Green Impact

25. Attribution
• I/S not posted as “green”
• Recommendations for
improvement in scale-up
TOC holds ?
Survey
data
START
END
• I/S posted as “green”
• Recommendations for
scale-up
No Yes
Calculation to verify
green TOC
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I/S= Investment/Sales

26. 26
MAINSTREAMING GG

27. Mainstreaming GG: Use of the ISN*
Sector Market Intervention Green Impact ISN*
CTA Input CTA-04 See annex for detailed GG tabs.
CTA-09
Apparel CTA-13
LAL Tanning LAL-05
LAL-10
Leather products LAL-06
FAV Input FAV-06
FIN SME FIN 12
Private capital FIN-TBD Integrating Good Corporate Governance in CFA/CFO
executive training; sharing results of CTA-13 BC study in
Investor’s Breakfast Club intervention
*ISN= Intervention Specific Note illustrating the anticipated green impact of the intervention

28. EP’s green intervention portfolio
All other EP
interventions
CTA-04
FAV-02
FAV-06
LAL-05
LAL-06
Pvt capital market
CTA-09
CTA-13
LAL-12
FIN-12

29. Thank You
ENTERPRISE PARTNERS
Bole, adjacent to Millennium Hall, behind
Reliance Hotel; Bel Amour Building, 2nd - 5th
floors
Phone: +251-116-186-601
Fax: +251-116-672-588
P. O. Box 27374/1000
Addis Ababa, Ethiopia
E-mail: info@enterprisepartners.org
Web www.enterprisepartners.org
Follow us on:
@EP_Ethiopia
Enterprisepartners1
www.enterprisepartners.org
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