Presentation slides

Objective

This Global MDP Classroom session will focus on how to effectively set-up and manage impact investment funds and apply innovative finance and business models in order to achieve true impact. Impact Investments have the intention of generating measurable social or environmental impact alongside a financial return – but how can this be achieved? How can impact investments truly provide financial access for social and environmental businesses? Are appropriate products and structures being used? Are the intended impacts being realized? What are the latest innovative financing models that can be applied? What are the sectors where impact investing can be most helpful in reaching SDGs and the climate, health, and environmental challenges facing global development?

How impact investment and entrepreneurship are reshaping developing markets

 Technology now enables us to measure and cost the impact on people and planet that companies create through their products, employment and operations. With $30+ trillion of ESG and impact investment seeking more than profit, investors, as well as consumers, employees, entrepreneurs and governments, have a right to know this impact. Mandating transparency would bring impact, alongside profit, to the center of our economic system by motivating companies, entrepreneurs and investors to bring solutions to our great social and environmental challenges – in effect reshaping markets to create a fairer and more sustainable world.

Readings:

Intro Readings:

Sir Ronald Cohen, Impact:  Reshaping Capitalism to Drive Real Change, London: Edbury Press, 2020.  Chapters 2 and 3:   34-85.

**Yago, Glenn and Steven Zecher, “Innovating Sustainable Finance for Development Impact,” in Paul Walsh and Ciara Whelan (eds.), Transforming our World:  the UN 2030 Agenda for Sustainable Development, London: Elgar, 2023.

**Applying Innovative Finance and Business Models for Real Impact: The How-to of Investment Fund Design and Management, Aspen Learning Lab Impact Management, November 2019.

Applications:

**A. Koenig, et.al., Innovative Development Finance Toolbox, KfW Development Bank, October 2020.

**“What Gets Measured Gets Finance: Climate Finance Funding Flows and Opportunities, Rockefeller Foundation and Boston Consulting Group, November 2022.

(Optional) Assignment:

Warm Up VIDEO: Milken Innovation Center-Blum Lab for Developing Economies-Jerusalem Institute-Hebrew University Business School-   How do we do financial field work together

This Global Classroom section will introduce the concepts and tools of impact investing at the beginning.  We hope to create a dynamic working session to lead to other impact project launches and further development.

After completing the readings, we’re hoping you could prepare specific project questions for possible application of impact investing.  In describing the project (or project target area) in the class, please address the following questions:

  1. What are the financial bottlenecks for this project in meeting SDG challenges?
  2. Why isn’t funding available? Does the market work?
  3. If not, why not?
  4. Who could fund and what do they care about?
  5. What financial tools can help catalyze that funding through a development capital structure stack or design?

If you wish to complete the assignment, please email your responses to Mark Orrs at orrs@mines.edu by end of the day Saturday, September 23. We’ll highlight one or two of the best responses we receive during the Global Classroom time, and use them for further discussion and debate.