Impact Investments and SDG Finance

UNDP SDG Innovative Finance

Slide 2 | ELEVATE | Confidential – Restricted Use | 2019 CSR Asia Summit, Bangkok | #CSRAsia19

Snapshot: UNDP in Asia and the Pacific

UNDP SDG Innovative Finance (UNSIF)

Sustainability and Impact Factored Finance

Sustainable Business Explained

The Triple Bottom Line: How Today's Best-Run Companies Are Achieving Economic, Social and Environmental Success - and How You Can Too Hardcover – November 4, 2013, by Andrew Savitz

from Shareholder Value to Stakeholder Value

Catalyzing Wealth for Change: Guide to Impact Investing. Author, Julia Balandina Jaquier. Publisher, Julia Balandina Jaquier, 2016.

Impact Investing Spectrum by Sonen Capital

Source: http://www.fourthsector.net/

Impact Factored Business Decisions and Investments

Impact Concept Explained

from Value Alignment to Impact Objective

from Shareholder Value to Stakeholder Value

Responsible Investments Sustainable Investments

Impact Investments

make Impact substantial component for

Business Decision Making

Definition & Metrics

Breadth

Depth

Risks

✓ PR – most obvious

✓ New Markets

✓ Less Volatility

✓ Better Governance

✓ Reduced Risks

Better Performance

180 compañías - 2 portfolios

horizonte: 18 años

data: Reuters

The performance ofsustainable

companies is 4,8% higherthan in traditional companies

Impact Measurement and Management

Strategies, Standards, Tools, Applications

• Policy Dialogue and Ecosystem Development

• Investor Engagement and Education

• SDG Impact Finance Instruments and Investible Project Pipeline

• Innovative Technology and Digital Finance for the SDGs

UNDP SDG Financing vision for Private Sector

• Government Advisory on policies, regulatory frameworks, compliance and

reporting standards for human rights and anticorruption

• Business Advisory on Human Rights Risks in business operations

• SDG targeting Impact Venture Incubators and Accelerators

• Advisory on impact value chain development combining technical support

and catalytic funding

• Support SDG impact standards to consistently and credibly measure,

manage, demonstrate and authenticate impact (IMM)

• Private sector reporting for SDGs

• Data and information management systems to track private and public

finance towards the SDGs

Spectrum of UNDP SDG Financing engagements

with Private Sector

ScaleOUT/WIDE:

Venture Acceleration and

Support

ScaleUP: Policy

Gov., Loc. Gov. Regulators

ScaleDEEP: Behavioral

Accelerator Lab, Advance

Advocacy

Cross-Cutting: Ecosystem

Coord, Dev. Partners,

Gov., Businesses

Systemic Change Strategies

Policy Advisory IMM Financial

Frameworks

• Impact metrics set in line with a major global benchmark targets - SDGs

• Focus on understanding and enhancing impact across several areas and multiple stakeholders

• Truly global benchmark for impact measurement • 17 strategic Sustainable Development Goals to

target by 2030• Each Goal has 5 to 19 indicators • In total 169 specific indicators

WHOLISTIC APPROACH IS IMPORTANT !

UNDP SDG Finance

&

UNSIF

sdgimpact.undp.org

Issued: • Practice Standards for Private Equity• Certification Framework

Upcoming: • Bonds • Ventures

impactlab.businesscalltoaction.org

Practical Business Benefits:

On-line assisted process:

Advisory directly to businesses

• adjust business strategies

• aligning business processes

• review, redefine supply chains, internal processes, products and services,

• re-direct innovation, entrepreneurship and intrapreneurship efforts

• successful impact models adaptation

Advisory on policy and advocacy to Government and Industry associations

• policies and regulatory frameworks

• compliance and reporting standards

• best practices

• incentives

• research and innovation of technologies and business processes

On going

Armenia

Serbia

Philippines

Turkey

Indonesia

Pipeline

India

Singapore

Thailand

Sri Lanka

On going

Denmark

Moldova

Pipeline

Balkan countries

Ukraine

Pre-Seed

Start-up,

Early Growth

Growth

Series A & B Established

Selected partners

Partnerships under discussion: