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

measuringimpact@wbcsd.org

www.wbcsd.org/web/measuringimpact.htm

For more information, please contact

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