Angelica rotondaro impact investing in brazilv3


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TBLI CONFERENCE™ is the prime annual global networking and learning event on Environment, Social, Governance (ESG) and Impact Investing.

Monday and Tuesday, June 17-18, 2013

Paul Rose
Vice President of the Royal Geographical Society
Richard L. Kauffman
Chairman for Energy Policy and Finance for the State of New York - Governor of New York's Office and Cabinet - United States of America
Martin Rapaport is chairman of the Rapaport Group and founder of the Rapaport Diamond Report

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Angelica rotondaro impact investing in brazilv3

  1. 1. Impact Investing in Brazil Angélica Rotondaro TBLI Conference New York, 17th June 2013
  2. 2. Slide 2 Brazilian Kaleidoscope
  3. 3. Slide 3 Brazil – Snap-shot Less inequality…by still 0.0 0.2 0.4 0.6 0.8 OECD Indonesia India China Russian… Argentina Brazil South Africa Late 2000s (↘) Early 1990s Gini Coefficient Inequality Index 6000 7000 8000 9000 10000 11000 12000 13000 Brazil GDP/capita (US$) GDP/capita (US$) Source: IMF Source: OECD
  4. 4. Slide 4 Brazil – Snap-shot New mid class and demographic bonus demand innovative business models Family Income Multiple min. salary Class A >USD5,100 20 Class B >USD2,550 10 Cass C >USD1,020 5 Cass D >USD510 2 Class E <USD510 1 Sources: IBGE 2011 Veja Online Nov 2012, FGV DemographicBonusThenewmid-class
  5. 5. Slide 5 Impact Investing as a Business Model Proposal: Impact Investing as a business model in Brazil in order to tackle: – SMEs focusing on services and products to the BoP / new mid- class and at the same time create business/employment opportunities to the youngsters (demographic bonus) – Provide the means (i.e. hybrid ventures) for innovative SMEs – Responsible financing (i.e. State banks that provide credit for contractors or any sort) – To integrate corporate responsibility a part of companies’ business model – Corporate foundations and institutes to fill a gap between early stage and ready to accelerate small enterprises – Corporate responsible purchase policies = inclusive business and sustainable value chains.
  6. 6. Slide 6 Impact Investing - Key Stakeholders in Brazil FIRST Brazil Pension Funds? Private Investment in the 3rd Sector? Family Offices? FundsAngels AcceleratorsNewVentures Public Private Partnerships?
  7. 7. Slide 7 1.Impact Investing – Definition HSG Hub São Paulo “Impact Investing provides mostly private capital for funding projects that are proposed by entrepreneurs. The projects must be based on innovative and sustainable business models, and must aim to help alleviate social problems and improve social conditions. An Impact Investment is expected to have a positive and measurable social impact, but it is also required to generate a financial return and at a minimum recoup the principal capital invested”
  8. 8. Slide 8 How the HSG hub contributes to the development of Impact Investing Researchers and Students interact with Entrepreneurs and Investors Bring together Entrepreneurs and Investors Students develop Case Studies Students write their Thesis Knowledge generated is provided to Platform Platform supports future Projects HOW Conferences, Round Tables Pilot Projects Publications Research Knowledge Centre Evaluation Centre (in cooperation with Insper)
  9. 9. Slide 9 Impact Investing in Brazil Example - Renewable Energy Energy Source % of Brazilian Production Hydraulic 74% Gas 11% Biomass 6% Petrol 5% Nuclear 2% Coal 1,00% Wind 0,50% Solar 0,01% Sourcea: Aneel, Food and Agriculture Organization of the United Nations (FAOSTAT), FGV, IBGE census 2010, Germany Trade and Invest Brazilian sugarcane based energetic sector (in million tons) • Hydropower is 74% of electricity matrix = no diversification • Grid coverage: 99.7% in urban areas and 92.6% in rural areas • Agricultural area of around 275 million hectares (FAO, 2011) • Agribusiness growth 9,7% (2013) • residual biomass potential of 250 to 600 million tons per year. • 21.4 billion kWh of energy = Rio de Janeiro 24.6 billion kWh consumption in 2011. • Biomass sources in Brazil are: • livestock – cattle, poultry and swine (total 76.8%); agriculture – citrus, coffee, corn, rice, soya, sugar cane (21.3%);others: residuals from the forestry (1.1%), and municipal solid waste (0.4%)
  10. 10. Slide 10 Impact Investing – Challenges in Brazil 1. Awareness 2. Filling in a lack where the Government is not present x partnering with the Government 3. Potential for pension funds, privately owned foundations and institutes, infrastructure projects compensation agreements 4. Legislation
  11. 11. Slide 11 For more information Angélica Rotondaro (HSG Hub SP Managing Director) Email: Phone: 55-11-98010-2299