Saturday, December 8, 2012

Impact Investing Conference - Summary

Summary of the First Conference on Impact Investing

The following post summarizes the speeches that were presented and reflects the ideas that came up during the first conference on Impact Investing regarding the topic Impact Investing - What for?

 

Conference on Impact Investing in Sao Paulo


On 5 December 2012, the HSG Hub Office in Sao Paulo held the first of a series of conferences about Impact Investing together with Insper and in partnership with the Sustainability Committee of the Swiss-Brazilian Chamber of Commerce.

This first conference subject was Impact Investing – What for? and aimed at bringing professionals of the field together for sharing experiences, networking, and even for the identification of joint pilot projects or match-making between entrepreneurs and investors.

In total 70 people attended the conference, among them impact investing ventures, Alumni members, representatives from different family offices’ CSR foundations, professors from different institutions and the students in exchange.

Along the conference, there was a balanced approach towards concept and practical cases. It also brought the different perspectives of the key stakeholders involved in Impact Investing: socio-environmental entrepreneurs, financial institutions and think-tanks.

The first presentation with the topic Impact Investing – What for? was presented by Ernst von Kimakowitz and opened the discussion with some conceptual, but fundamental thoughts on Impact Investing. The need for Impact Investing consists mainly in the fact that today’s challenges cannot be solved solely with publicly available funds. It will be necessary to tap in private wealth to solve today’s challenges and Impact Investing might be one of the answers. As stated by Ernst: the approach should be business as unusual, and therefore the crucial importance of the entrepreneurial motivation.

The investors perspective – the case of Credit Suisse, was presented by Heiko Specking who brought an overview on how the institution understands where impact investing positions in relation to traditional Philanthropy and Corporate Social Responsibility; as well as the sort of advisory services available to their customers aiming at defining or reviewing their strategies on how to positively contribute to current socio-environmental issues.

Impact Investing for Education, was the first of the two presented cases. In it, Prof. Sergio Lazzarini, from Insper, shared a proposal based on the Social Impact Bond Model, taking the cases of ISMART (Social Institute to Motivate, Support and Recognize Talents) and Instituto Embraer, and with three possible scenarios. The main idea behind this project is to tackle the educational issues of Brazil, by providing a consortium formed by donators, investors, private schools and an evaluation center.

A business case of Biomass in Brazil, was the second business case and aimed at showing initiatives and projects which already bring a positive environmental impact by addressing sources of renewable energy and agricultural waste destination. The case was introduced by Ernesto Moeri, from Ecogeo, a Swiss-Brazilian entrepreneur and a reference when it comes to environmental businesses and alternative energy in Brazil.

In the sequence, Angelica Rotondaro and Fabian Oppenheimer, from the HSG Hub office, introduced and launched the Impact Investing Research Platform. In it, students and researchers play a central role by developing case studies, while at the same time writing their theses. The insights and gained knowledge return to the platform, as a knowledge center, and help to support future projects. There are four topics in impact investing, focused by the platform: sustainable agriculture; renewable energy; social housing and education. The platform operates through the development of pilot projects and research; the organization of public conferences; training modules; and publications.

In Innovative Models for Traditional Businesses, Peter Probst, a HSG Alumnus, brought up insights of how ‘old’ problems, like the high demand for housing, in Brazil, could and should be approached by impact investors. He showed some examples of low-cost construction technologies that have high productivity and scalability, and that could be developed and implemented through the creation of a fund for BOP-Housing.

The last and closing presentation was held by Peter Sester, about the Regulatory Aspects in Impact Investing. His remarks included that regulation shall not be seen exclusively as a restriction, but also as a facilitator. While restrictive regulations can contain requirements for admissions, facilitative restriction can contribute to trust building or the comparability of products. Peter Sester also mentioned the role of tax reduction as a compensation for the below the market impact investing return rates.

At the end of conference, attendants and lecturers were invited for a networking session.

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