© Palladium 2019

© This material is the copyright of Palladium

Joan Cabezas, Director - Global Private Sector Solutions

The Palladium Group

Bangkok, 17th October 2019

The Palladium Group

Delivering Positive Impact

© Palladium 2019 Title Goes Here - 2 -

Palladium is a global impact firm,

working to link social progress and

commercial growth. For the past 50

years, we've been helping our clients to

see the world as interconnected - by

formulating strategies, building

partnerships, and implementing

programs that have a lasting social and

financial impact. We simply call this

“Positive Impact”.

We work with corporations,

governments, investors, communities,

and civil society. With a global network

operating in over 90 countries,

Palladium is in the business of making

the world a better place.

© Palladium 2019

Our global footprint includes deep local expertise in more than 90 countries…

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Employees

Countries in Current Operation

OfficesWorldwide90 75 Hub Offices

Worldwide113K

OUR HUB OFFICE

LOCATIONS

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Steady Growth in Investments,

Awareness & Mobilization…

▪ Evidence-based new regulation/policies

▪ Governments funding impact programs

▪ Generalization of Shared Value Strategies

▪ Growing CSR/Sustainability programs

▪ ESG/SDG reporting adopted by corporates

▪ Increase of philanthropic/donor funding

▪ Rise of Impact Investment/Blended Finance

▪ Younger generations setting pace of change

▪ Dissemination of scientific discoveries/data

… is not quickly translated into big

scale Positive Impact Transformations

▪ Success stories are too small

▪ Interference of local/national politics

▪ Lack of Full Ecosystem solutions

▪ Conflicting incentives for the main actors

▪ Reduced inequality is not a basic outcome

▪ Consumption vs. Growth vs. Climate Change

▪ Fragmentation of capital deployed

▪ Solutions are seldom sustainable at scale

▪ Growing disaffection of young generations

The Big Challenge: How to organize the transformation towards Positive Impact

We have identified fundamental societal, environmental and economic challenges, we have

also the human and technological power to design and implement workable solutions, we are

ready to deploy funding to enable the transformation… the main problem then is

WHAT IS THE ORGANIZATION RESPONSIBLE TO DESIGN AND EXECUTE THE CHANGE?

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Barriers to Create

Value and Deliver

Positive Impact

GOVERNMENTS

▪ Too small – Insufficient scope

▪ Ministerial fragmentation

▪ Pressure on short term outcomes

▪ Lack of blended finance policies

▪ Non-agile procurement processesPRIVATE SECTOR

▪ Too narrow – Insufficient scope

▪ Focus: short term financial results

▪ Outdated Vision and Societal Role

▪ Strategy vs. Sustainability/CSR

▪ Stigma of competition/secrecy

INVESTORS

▪ Too picky – conservative approach

▪ Limited by short term exit strategies

▪ Trap of rent-seeking investors

▪ Success as ROI/ROA vs. SDGs

▪ Very small % for Grants/TA

PHILANTHROPY / NGOs

▪ Too specialized – limited agenda

▪ Financing mostly Non-profit

▪ Private Sector demonization

▪ Small, short-term interventions

▪ Success as Social vs. Economic

DONORS

▪ Too specific – limited scope

▪ Stringent procurement rules

▪ Lack of Catalytic Approach

▪ Limited investment mentality

▪ Success as Targets vs. SDGs

Existing Organizations/Structures do not seem to have the right incentives

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The intentional creation

and measurement of

enduring social,

economic and

environmental value

…requiring improved Integration

and coordination to reach scale

…trying to be addressed by

different social agents…

Urgent Global

Challenges…

• Climate Change

• Clean Energies

• Deforestation

• Maternal & New Born Health

• Addictions

• Gender Violence

• Non-Communicable Diseases

• Access to Education

• Healthy nutrition

• Malnourishment and stunting

• Clean oceans

• Corruption

Positive Impact

Donor Pathway

Government Pathway

Private Sector Pathway

NGOs Pathway

Impact Investor Pathway

Integration of multiple pathways is the key to efficiently deliver Positive Impact

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BENEFITS

▪ One common agenda for change

▪ One approach that facilitates collective

ownership and accountability

▪ One set of complementary and mutually-

reinforcing initiatives

▪ One impact value measurement system

▪ One governance structure

▪ One interface for collaboration with

government and civil society

CONDITIONS

▪ Authority and Power like/from Governments

▪ Innovation, business model to scale and

results-orientation like/from Private Sector

▪ Access to long-term capital like/from

Investors

▪ Last mile delivery capabilities and

passionate people like/from NGOs

▪ Focus in trans-national social and

environmental challenges like/from Donors

ROLES

▪ Provides robust research & data analysis

▪ Designs strategy, solutions and a portfolio of

evidence based interventions

▪ Unlock impact/blended financing

▪ Manages the portfolio of interventions and

operations across the ecosystem

▪ Monitors, evaluates & reports transformation

▪ Governs & engages with all the Ecosystem

StakeholdersTHE CATALYSTS:

Platforms for

Systemic Change TYPES

▪ Special Purpose Vehicle – Private

▪ Special Purpose Vehicle – NGO

▪ Government Program

▪ Long-term Facility

▪ Private Company / Start-up

▪ Fund Manager

▪ Early-stage Impact investor

▪ Philanthropist’s Impact Office

The Advent of a new type of organization: The Catalyst

© Palladium 2019 www.thepalladiumgroup.com