Latest Academic Trends in Impact Investing in Brazil
The tenth edition of our newsletter reviews three international researchers who are currently working on sustainable finance or Impact Investing. It also contains information on executive education courses that have been taken place, a case study that was developed through IILA, as well as recent articles and publications related to the topic.
The 22 students of the St.Gallen Executive MBA finished their last compulsory course
between November 24th and December 3rd in São Paulo, Rio de Janeiro and
Buenos Aires. The classes in Brazil focused on the growing market of
the low-income population; the so-called base of the pyramid and
emerging middle class. Apart from the lectures on the political,
economic and business environment and consumer behavior, the students
prepared through the case study of Dr.Consulta (private health care for
low-income customers), visits to the retail environment of the market as
well as a market research organization that focuses on consumers in
favelas for their final exam (developing a service or product for this
market segment). In Sorocaba (city in the industrial belt of São Paulo),
the group learnt more about how the minister of development attracts
innovation-intensive companies. They were also hosted by Embraer
Executive Jets- which serves as an example of a Brazilian National
Champion- and introduced to the business segment of small private jets.
In Argentina the students dived deep into the challenging business
environment of multinational companies that interact in a country used
to economic crises and inflation.
The publication of Bain & Company describes the current Impact Investing landscape in Latin America, its criticial challenges and future possibilities.
Bain & Company mentioned the problem of sourcing investment opportunities, the difficulty in measuring impact, the challenge for finding suitable exit opportunities and the lack of supporting institutions as the main challenges that keeps Impact Investing from going mainstream.
The ICE Award for Social Finance and Impact Business, supports academic work in this area in order to disseminate knowledge on the topic.
O Prêmio ICE Finanças Sociais e Negócios de Impacto – Incentivo ao
Trabalho Acadêmico, tem por objetivo incentivar e aprofundar o debate,
assim como gerar e disseminar conhecimento sobre finanças sociais e
negócios de impacto na comunidade acadêmica das diferentes regiões
geográficas do Brasil, envolvendo alunos de quaisquer cursos de
graduação e professores, conforme disposto neste regulament.
On October 9th 2014, the HSG Hub São Paulo together with Nestlé Brazil coordinated the live transmission of the CSV (Creating Shared Value) Conference that took place in Lausanne, Switzerland. The live broadcast of the afternoon session was at the social headquarter of Nestlé Brazil in São Paulo. Exchange students from the University of St. Gallen, as well as students and professors from partner universities, such as Insper, University of São Paulo and FGV attended the event.
Questions could be sent by emails or via social media directly to the speakers. That way the participants of the event in São Paulo could actively take part to the discussions. On the topic of sustainable agriculture and supply chain, Johannes Boch from the HSG Hub São Paulo asked the speakers how they imagined a structure of public private partnership and collaboration in governance that creates impact and whether they had some best case examples. During the same panel, students from the University of São Paulo sent a question to José López, Executive Vice President of Nestlé, about the concept of fairness when talking about shared value. The last panel dealt with the question of water scarcity and potential solutions. Here, Johannes Boch directed a question at Mr. Brabeck-Letmathe, Chairman of Nestlé, on how a world of a "self-sufficient" man who is consciously using resources is in agreement with growth strategies and capitalism and whether he thinks that big cooperations need a business model that focuses on sustainable economic development.
The event was an excellent opportunity to bring academia and business closer and to further strengthen the connections of the University of São Paulo with local Brazilian entities. For more photos check out our album.