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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