Post on 18-Mar-2020
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P O S I T I V E I M P A C T F I N A N C E
Work Plan
February 2016
Financing the SDGs – Global Imperative & Market Opportunity
Blended finance,
venture capital,
impact investing,
results-based financing,
crowd funding,
green, climate, social and other bonds…..
So why add to the list?
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And indeed there is a lot happening…
Not enough shifting and almost no additionality.
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The Scale Problem
FUNDING
GAP
Non-existing,
and/or
currently
unbankable
assets ?
ADD
Venture K,
crowd-
funding…
B.A.U. –
existing and
bankable
assets
Blended
finance, green
bonds
SHIFT
• New business models needed to solve the problems (e.g. circular
economy)
• Currently limited ability for mainstream finance to support new
business models.
Can the products and services needed to bridge the gap become
part of Fis’ mainstream business or not?
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Cracking the nut
A new financing paradigm with deep implications for
all players.
• Disruptive public planning
• Disruptive business models
• Disruptive financing models
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The Positive Impact Manifesto
The Positive Impact Roadmap
Manifesto (2015)
Principles & Incubator (2016)
Marketplace (2017)
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A 3-tier Work Plan for 2016
Work Plan
I. INCUBATOR
Opening markets,
financing the “impossible”
II. PRINCIPLES
Developing market tools,
paving the way for the
Marketplace
III. SUPPORTING ACTIVITIES
Sharing Knowledge and Thinking Ahead
I. INCUBATOR Opening markets, financing the “impossible”
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POSITIVE INCUBATOR TOPICS
I. INCUBATOR
Opening markets,
financing the “impossible”
Economic Development
SME development
Entrepreneurship
Small-holder farming
Base of the pyramid
Circular Economy /
Resource Efficiency
Waste management &
sanitation
Energy efficiency
Water efficiency
Infrastructure
Access to energy, water
Public transport
Smart cities
Proposed Incubator Set-up
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Positive Impact Financing*
Multi-stakeholder problem-solving
per Topic
Scoping per Theme
E.g. Resource Efficiency
(addressing issues of scarcity and pollution) by
applying circular economy thinking
E.g. water supply
E.g.
E.g.
E.g. contaminated land / water
E.g.
E.g.
E.g. waste management E.g.
Preparation &
Submission of
Proposals
Negotiation
Step One Step Two Step Three
*private
A.
Itera
tive P
rocess
B.
Pro
po
sals
*
Open t
o a
ll C
om
mis
sio
n
mem
bers
P
IWG
only
Positive
Impact
Financing
Guidelines
POSITIVE IMPACT •Contribution to at least one of the three pillars of
Sustainable Development •Negative impacts duly assessed and mitigated as
appropriate
ADDITIONALITY •Priority to be given to processes and projects that will offer
additionality – solutions to banking the “unbankable”
SCOPE •The funding gap: several trillions •To be relevant the Incubator could
aim for 1% i.e. approx. 10 billion •For a project to be of interest to investors: 300
million •Aim for: 500 million
SCALABILITY •Projects should be scalable if they are to make a significant
contribution to addressing the funding gap •Aim for: potential replicability to min.
1 billion
PROFITABILITY •The point of the incubator is to unleash private finance, for
which the profitability item is key. •Aim for: ROI of 10% (indicative)
TRANSPARENCY & TRACEABILITY • Any projects financed should be available
to test the positive impact assessment framework (part of development of the
framework)
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II. PRINCIPLES Developing market tools, Paving the way for the Marketplace
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1. Grounding Paper
Rationale
There are numerous attempts and initiatives in driving finance towards
environmental or social objectives (e.g. green bonds, climate bonds,
exchange platforms, etc.). A consolidated narrative on how a positive
impact approach differs and contributes to this effort is necessary in
engaging relevant players in an effort to establish a common language.
Objectives
Preparing the ground for the multistakeholder process that will deliver a
common assessment framework based on Positive Impact Principles
(see following activity).
Steps
• ToRs
• Identification of potential authors (partnership?)
• Data collection / engagement of relevant partiers, writing and
reviewing
• Input to assessment framework process (see next work plan item)
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2. Convening of Stakeholders
Rationale
Credibility and legitimacy of the work delivered and ultimately of the
Marketplace hinges on the ability to show positive impact in action and
on the rise. Auditors and EFRAs have a key role to play to validate
and certify positive impact business and to grant levels of assurance.
Objective
• Definition of positive impact “label” and levels of assurance
Steps
• Pitch material in the form of an invitation letter and agenda for a
meeting
• Bilateral outreach to any missing big 4 or EFRAs (not yet contacted)
+ reinforce existing discussions - Feb
• Convene meeting (March? April?)
• Involve in incubator deals (experimental)
• Convene multi-stakeholder meeting 2nd semester for Principles
definition
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III. SUPPORTING ACTIVITIES Sharing Knowledge and Thinking Ahead
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1. Knowledge Sharing for Implementation Support Rationale
Delivering positive impact finance presents significant
practical/implementation challenges of different nature, from tools to HR.
Different approaches and strategies are already underway and should
form the basis of shared learning between members.
Objectives
Drive capacity to develop positive impact finance business in individual
institutions.
Steps
• Map challenges & expertise
• Exchange of experiences on the most
• Potential documenting of best practice
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2. Positive Impact Data Base Rationale
Assuming that the search for new business and financing solutions
under the Incubator and the development of a common language via a
set of Principles and an assessment framework move ahead, a further
factor in achieving scale will be the ability to pool and distribute relevant
information from and too all relevant stakeholders.
Objectives
Thinking ahead about the kinds of tools, such as a centralised database,
that might be needed to see the emergence of a Movement.
Steps
• Identification of relevant/desireable information and information-
holders
• Identification of potential technical partners and possible value
proposition for such partners
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SUMMARY
Data gathering /
distribution tools
Work Plan
Economic Development
Convening of Stakeholders
I. INCUBATOR: Learning by
doing, leading by example
II. PRINCIPLES: Creating
the Movement, establishing
the Marketplace
Grounding Paper Circular Economy /
Resource Efficiency
Infrastructure
III. SUPPORTING
ACTIVITIES: Sharing
Knowledge and Thinking
Ahead
Implementation Support
Work Stream Governance
BANKING COMMISSION
INVESTMENT COMMISSION
POSITIVE IMPACT WORKING GROUP
Chairs/Focal
points
Members:
• Banks
• Investors
Secretariat
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What it means to be a PIWG member
As a PIWG member you:
• Have signed the Positive Impact Manifesto
• Are actively participating in the Positive Impact Incubator (on as
many topics as you wish / can manage)
• Are actively participating in the development of the Positive
Impact Principles / assessment framework
• Engage with the Secretariat and Focal points on a quarterly basis
to review and discuss the progress of the Workstream
• Can propose and/or host specific discussions / working groups on
implementation topics.
What about non PIWG Members?
Banking and Investment Commission Members who cannot / do not
wish to endorse the Manifesto can still be involved and de facto help
build-up the Movement:
• Access to Positive Impact Incubator
• General updates (mailing list, webinars, annual meeting)
Commissions: support (via incubator) - yearly info-sharing meeting
Commission Boards: support
and sound-boarding – periodic updates and consultations
Working Group: implementation, consultation and
validation – quarterly meetings
Chairs – implementation &
strategic planning – monthly meetings
Workstream Modus Operandi
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Calendar
Q1 Q2 Q3 Q4
Chairs 19-01
16-02
15-03
19-04
17-05
21-06
19-07
23-08
20-09
18-10
15-11
13-12
PIWG 03-02 26-04 26-07 25-10 (TBC)
Incubator Kick-off
webinars (23-02
– resource
efficiency)
Principles Grounding
Paper ToRs &
Bilaterals
Auditor meeting
EFRA meeting
(April, tentative)
Grounding Paper
launch
(September,
tentative)
Multi-stakeholder
meeting
(November,
tentative)
Supporting
Activities
Set-up TBD TBD
BC Board Calls 09-02 07-06 06-09 06-12
IC Board Calls Updates once a quarter, dates tbd
Update to
Commissions
24-25 Oct
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THANK YOU