Business & Development:The WBCSD Measuring Impact Framework
Matthew Lynch – Program Manager, WBCSD.
NCDO Business Impact Seminar, Amsterdam – 17th June 2010.
Presentation Overview
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WBCSD Overview
Millennium Development Goals (MDGs): Progress
What is the role of business?
WBCSD Measuring Impact Framework
MDG Scan & Business Impact Report 2010 – Added value to WBCSD & its Membership
What is the WBCSD?
A CEO-led coalition of some 200 companies with a shared commitment to sustainable development via the three pillars of
economic growth, ecological balance and social progress.
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Akzo Nobel N.V.
DSM N.V.
KPMG
Royal Dutch Shell plc.
Royal Philips Electronics N.V.
TNT N.V.
Alliance for Inclusive Business (SNV)
WBCSD: The Netherlands
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Millennium Development Goals
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http://www.un.org/millenniumgoals/
MDGs: Extreme Poverty
Source: UN (2009) The Millennium Development Goals Report
Child Mortality & Maternal Deaths
Source: UN (2009) The Millennium Development Goals Report
Some successes:– Overall reduction in extreme poverty
– Primary education
– Child mortality (latest data)
Major challenges remain, including:– Hunger
– Employment
– Sanitation
– Maternal mortality
MDGs: Successes, priorities to 2015
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Source: UN (2009) The Millennium Development Goals Report
Business Role in Development
PHILANTHROPYSHAREDVALUE
COMPLIANCEIMPACT & RISK MANAGEMENT
Social Value Added
Corporate Value Added
INCLUSIVE BUSINESS MODELS
STRATEGIC SOCIAL INVESTMENTBusiness as usual Building competitive advantage
‘Do no harm’
Do positive good
Source: Nelson (2006) Leveraging the Development Impact of Business in the Fight Against Global Poverty
Business Role in Development (II)
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Business Activities Outcomes MDGs
Investment
Provision of goods and services
Employment & training
Supplier opportunities & development
Infrastructure
Public policy dialogue & Institutional strengthening
Strategic social investment
MEETING ESSENTIAL NEEDS
ENHANCED LIVELIHOODS &
INCOMES
TECHNOLOGY TRANSFER & CAPABILITY
DEVELOPMENT
IMPROVED GOVERNANCE
INCREASED GOVERNMENT
REVENUES
Eradicate extreme poverty and hunger
Achieve universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS, malaria and other diseases
Ensure environmental sustainability
Develop a global partnership for development
New markets for products and services
Understanding the growth markets of the future (and the present!)
Social risk management – building and maintaining license to operate
Businesses cannot succeed in societies that fail
Companies of the future will align corporate strategy with societal challenges
The Business Case
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Business is a solution provider
Business is a major source of capital for developing countries
Sustainable development is a business opportunity
Inclusive business is a win-win for business & society
Business cannot solve poverty alone but poverty will not be solved without business
Importance of measurement
WBCSD Key Messages
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Measurement Challenges
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Business Activities Outcomes MDGs
Investment
Provision of goods and services
Employment & training
Supplier opportunities & development
Infrastructure
Public policy dialogue & Institutional strengthening
Strategic social investment
MEETING ESSENTIAL NEEDS
ENHANCED LIVELIHOODS &
INCOMES
TECHNOLOGY TRANSFER & CAPABILITY
DEVELOPMENT
IMPROVED GOVERNANCE
INCREASED GOVERNMENT
REVENUES
Eradicate extreme poverty and hunger
Achieve universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS, malaria and other diseases
Ensure environmental sustainability
Develop a global partnership for development
The Framework is designed to help companies understand their contribution to development and use this understanding to:
Inform their operational and long-term investment decisions
to have a more informed conversation with stakeholders
Measuring Impact Framework
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Measuring Impact Working Group
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WBCSD approach to measurement
Excel-based user guide
“Beyond the bottom line”
– the business caseMethodology
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Four-step Methodology
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Stakeholder engagement
Step 1 - Set boundaries
Step 2 – Measure direct and indirect impacts
Step 3 – Assess contribution to development
Step 4 – Prioritize management
response
Measuring Impact Framework
Decision by individual companies
Built by business for business
Starts from what business does - business
Moves beyond traditional reporting
Encourages stakeholder engagement
Flexible
Complements existing tools
Key Features
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Applications in Practice
Newmont Ahafo Gold (Ghana) – Business linkages with local communities
Ecosecurities – Project development tool for CDM & Voluntary carbon markets
Nestlé (Peru) – Developing & piloting inclusive business models
MDG Scan: WBCSD view
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Supports key messages:
– Business can play an important role in development and achieving the MDGs
– Importance of core business for development impact
Partnerships for scaling up impact
Need for inclusive business:
– Local value creation for the poor
– Products and services
MDG Scan: WBCSD view (II)
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Measuring Impact:
– Support measuring impacts and understanding contribution to development
– Surveying the Measuring Impact Landscape
Distribution & Awareness:
– Member Companies
– External communications channels
www.wbcsd.org/web/measuringimpact.htm
For more information, please contact
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