Archive for March, 2011

It’s been nearly seven years since the late C.K. Prahalad wrote The Fortune at the Bottom of the Pyramid, a book that has become essential reading for anyone interested in that segment of the economy.  In that time, the term bottom of the pyramid (BoP) has also become common vernacular.

However, despite the increase in awareness of the BoP space, a lot of the focus has been on the wrong questions, says Ted London, the Director of the Base of the Pyramid Research Initiative at the William Davidson Institute at the University of Michigan,

At an event in Mumbai last week for his new book, Next Generation Business Strategies for the Base of the Pyramid, London said there has been much discussion about whether businesses that target the BoP are good or bad for the poor. That, he argues, is no longer important. » Continue reading “Reframing the BoP Business Strategy”

According to a new report from The Climate Group, India’s share of the US$ 2.2 trillion (INR 10 million crore) global clean energy market could be as much as US$ 135 billion (INR 6 trillion).

The “India’s Clean Revolution” report, released last week, details how India can participate in the global clean energy market. India is making more progress in energy efficiency than the U.S., and the rate of increase of the country’s private investment is expected to be three times that of the U.S. and China—up to 736% in the next 10 years.

This revolution is expected to create up to 10.5 million green jobs in the country. Mark Kenber, the CEO of The Climate Group, said that this is a necessary and important revolution.

“The writing is on the wall—there is no such thing as a secure, high-carbon, low-cost future in India or anywhere else,” he said at the launch event. “Only a clean industrial revolution can guarantee long-term prosperity for any nation, and nowhere is this truer than in India.” » Continue reading “How to Catalyze India’s Clean Revolution”

This post is part of our ongoing partnership with GOOD Magazine. Post by Alex Goldmark.

Tuesday was World Water Day. This year’s theme was “Water for Cities.” Yes, you can still attend all manner of walks, photo contests, screenings and other events supporting global access to clean water. We’ve highlighted some noble projects for delivering drinking water in the past, but for this year’s World Water Day, we bring you news of a new technology designed especially for disasters.

The HTI HydroPack is like an empty Capri Sun pouch with powdered nutrients inside. But it’s really a filter you can drop in any water source—a swimming pool, a mud puddle, a contaminated aquifer—and eight to twelve hours later the pack has filled itself with potable, fortified water. » Continue reading “The HydroPack Is Like a Capri Sun Pouch for Disaster Relief”

Dear Reader,

According to the Global Impact Investing Network (GIIN), impact investments “…aim to solve social or environmental challenges while generating financial profit.” As so-called “sustainable capitalism” gains momentum, there is need for a mechanism – for both investors and fund-seekers alike — to define and evaluate what characterizes this burgeoning industry.

This coming July will mark the official launch of the Global Impact Investing Rating System (GIIRS). As you will read in this issue, GIIRS is a project brought to life by the not-for-profit B Lab, in partnership with the Rockefeller Foundation, USAID, Prudential Financial, Deloitte, Investors’ Circle and the GIIRS Pioneer Funds. GIIRS will include ratings features on companies, funds, markets, industries, performance and more. » Continue reading “The GIIRS Potential”

Sponsored by GIIRS

This story originally appeared in our March 24, 2011 e-magazine. Click here to subscribe.

The official launch of GIIRS won’t come until July 2011, but Beyond Profit got an inside look at the beta tour.

A November 2010 report from J.P. Morgan and the Rockefeller Foundation declared impact investments an emerging asset class. With new potential comes new challenges.

Impact investing puts a spin on the traditional idea of investing where decisions are made based on financial as well as social and environmental considerations. As a result, measuring returns goes beyond the traditional financial metrics to include tracking social and environmental performance.

Measuring impact can be a tricky proposition though. The issue is that no unified system to measure impact exists, which leads investors and others to rely on anecdotal evidence. The Monitor Institute report “Investing for Social and Environmental Impact” recommended a rating system to standardize metrics. » Continue reading “The Rate of Impact”

Sponsored by GIIRS

This story originally appeared in our March 24, 2011 e-magazine. Click here to subscribe.

Impact investing faces challenges in its effort to scale. GIIRS can provide solutions.

1.     Fragmentation

The impact investing sector is in a nascent stage so there is very little sector mapping or even a clear definition of what exactly impact investing is. Different companies and investors use and require different metrics. GIIRS will help unite the sector by creating a standard of metrics. The GIIRS assessment has the potential to create a collection of rated impact investments. » Continue reading “Challenges to Scale”

Sponsored by GIIRS

This story originally appeared in our March 24, 2011 e-magazine. Click here to subscribe.

Grassroots Business Fund participated in the GIIRS beta tour. Beyond Profit spoke to Soha Ehsani about the GBF’s work, impact investing and the future.

How did Grassroots Business Fund (GBF) start?

The Grassroots Business Initiative (GBI) was incubated inside the International Finance Corporation for two years before spinning off into GBF. GBI made similar investments, but given the structure and size of investments, it was decided that GBF would be more suited as its own entity.

What makes GBF different from other funds out there?

With growth, we are seeing the need to develop an ecosystem characterized by the sharing of best practices, strengthening of players and assignment of pools of capital to support organizations in impact investing. There are pieces of infrastructure that are coming together such as definitions, metrics and some groupings. However, impact investing remains far less advanced than microfinance, which early on developed a robust set of players, practices and principles. GBF identifies itself as a fund that works with businesses that are looking for more than just capital. We add value to our investees through direct technical assistance and local expertise.  In essence, we complement our investment capital with a very hands-on approach to prepare our clients for the next stage of their business. » Continue reading “At the Grass Roots Level”

This story originally appeared in our March 24, 2011 e-magazine. Click here to subscribe.

By the Numbers

In a new report by Harvard University and supported by the Rockefeller Foundation, a strong case is made for government support of impact investing.

US$24 billion

(US) The value of debt and equity investment in low-income communities supported by the U.S. CDFI Fund and other related policies. » Continue reading “Data: The GIIRS Potential”

This story originally appeared in our March 24, 2011 e-magazine. Click here to subscribe.

Past Beyond Profit interviewee, Morgan Simon, writes about her views on impact evaluation and the importance of community involvement.

“Get off your (ass)ets and do something!” was my creed for many years as the leader of the Responsible Endowments Coalition, working to get colleges and universities to move their US$400bn towards impact investment. Activists are known for impatience—we often want to see change happen and then move on to the next thing. Hence, pausing for impact measurement always seemed to me like a potential waste of time.  Didn’t we have enough work to accomplish just convincing people to do impact investment at all?

I’m proud to say I’ve completely reformed. I have jumped full-force onto the impact measurement bandwagon. I’m excited that the organization I currently work with, Toniic, is serving as a Pioneer Fund for GIIRS. And I’m hopeful that as an industry, we’ll be careful and critical about how we talk about impact over time. » Continue reading “Impact Evaluation”

The cover story in our recent issue about education looked at investment opportunities in affordable public schools—schools that charge less than US$12 (INR600) per month. In response to that article, Bongu Bharat posted an article to his blog that garnered the following comment from Dr Vibhu Pal:

Our Society runs two A P S near Delhi. Although the schools are doing good, we are facing some tough problems:
Since the fees is low, the schools have been branded of low brand value in spite of the fact that education wise our Schools are fully equipped – trained staff, infra structure on par with branded schools, every year 100% result of our Board classes etc. Good schools are measured with the fees being charged. » Continue reading “Changing the Public View of Affordable Private Schools”