B4IG Newsletter #6
In this issue:
Blended financing mechanisms at the IGFF
New incubator program participants
EU trade policy review
And more!
From the B4IG
Welcome back to the B4IG newsletter! We’ll have news from various aspects of the coalition’s inclusive growth efforts, but wanted to start today’s edition with a quick dive into what we’ve been noticing lately with the Inclusive Growth Financing Forum (IGFF).
As the IGFF has moved forward in its efforts (including 1-1 interviews with each company involved, meetings with impact investors, etc.), it has been striking to see just how dynamic blended finance mechanisms are becoming. And the dynamism of these blended mechanisms, which include a backstop of public money to encourage private investment, is only accelerating: there are more and more projects, and those projects are stretching the lines of innovation further and further.
In this sense, it’s clear that it is not ideas that are lacking; indeed, it is quite simply the moment when we need to take those initiatives and push them into their scaling-up phase, allowing them to move from “innovative” to mainstream and to begin helping all the projects around the globe that can benefit from them. This requires active collaboration between our members and partners and the moment is now.
Given this, and given the forecasted $30T gap in financing SDG goals by 2030, the IGFF’s roadmap is now pointed at being an “inclusive growth aggregator” for such blended financing projects. Whether via pay-for-results, outcome contracts, KPI-based funding, or other possibilities, the IGFF – together with the B4IG incubator and the pertinent Working Groups – will be supporting concrete financing pilots that can be quickly scaled into mainstream financing solutions. The IGFF is currently putting together a Task Force of B4IG members to help design those pilots. To get involved with your company, reach out to Stéphanie Mareva Failloux, Head of the IGFF (stephanie.failloux@b4ig.org).
The Actions
The B4IG Incubator team is happy to announce that the 2021 acceleration program has started and gathers 10 projects from 4 continents, addressing diverse topics like the digital divide, circular economy, professional integration and human rights. The projects share common characteristics and challenges, addressing people in highly vulnerable situations and aiming at building inclusive business practices. There is also a tendency towards the use of online platforms for inclusion while addressing challenges around building revenue models, strengthening value propositions and building partnerships.
The acceleration phase will begin at the Launch Event on May 5th at 3pm CEST, to which all B4IG members are welcome via Zoom. You can expect exciting insights into the projects and directly contribute to their advancement by bringing together our collective coalition knowledge. Furthermore, you’ll have the opportunity to learn about inclusiveness at scale, exchange with other B4IG members, gain inspiration from a special guest and spend an enjoyable moment together!
From the OECD
A recent OECD report, “The Inequalities-Environment Nexus: Towards a people-centred and green transition”, demonstrates the impacts of environmental degradation and environmental policies on four aspects of the OECD Well-Being Framework: health, income and wealth, work and job quality, and safety. The research presents unequivocal results showing that the consequences of environmental degradation fall disproportionately on those groups and individuals in our societies which are already the most vulnerable. You can read the summary article here and access the full report here. The report will be a valuable input for the B4IG Working Group Just Transition that is led by Crédit Agricole.
On 25 March, the WISE Centre co-organised with the OECD Emerging Markets Network (EMnet) a webinar entitled Mind the gender gap: Connecting business and governments to build back better. This event brought together the public and private sector, including representatives from B4IG members Accenture, AXA and Veolia, to discuss the role of the private sector in promoting an inclusive recovery and how the policy-enabling environment can support companies adhering to gender inclusion and empowerment commitments in times of crisis. The dialogue was rich, covering topics such as measurement, living wages, the digital divide, and access to financial and non-financial supports. A recording of the webinar is available to all on Twitter, Facebook, LinkedIn and Periscope.
Around the Globe
The EU’s latest trade policy review includes the possibility of holding companies accountable for labor and environmental standards throughout their supply chains, which if enacted is widely seen as potentially having an impact on trade with China due to its treatment of the Uighurs. For more detail, here’s the European Commission’s announcement of the trade policy review and a recent take in the Financial Times.
In March, the European Financial Reporting Advisory Group (EFRAG) published its recommendations regarding the development of EU sustainability reporting standards. This is a major step in the revision of the EU Non-Financial Reporting Directive. Both reports, regarding technical advice on sustainability reporting and potential changes to the EFRAG governance and funding, can be accessed here.
B Lab together with the US Impact Investing Alliance and 50 other impact-oriented organizations are calling on the Biden administration to set up a White House initiative on Inclusive Growth. You can watch their video presentation here and find more details on how to participate here.
Save the date(s)
April 21: Working Group 2 (Responsible Restructuring) meeting, 5:00-6:00 pm (CEST).
April 23: Working Group 1 (Human Rights) meeting for a follow-up discussion on the first benchmark of company human rights due diligence tools relating to the contracting of agency workers and service providers.
April 23: B4IG South Africa local network, first workshop, 10:00-12:30 pm (CEST); this will be followed by a meeting of B4IG South Africa members’ GM/CEOs on May 25, 9:00-10:00 am (CEST) to validate the concept for collective action.
May 5: Incubator program launch event, 3:00 pm (CEST); Zoom link here.
May 6: Working Group 1 (Human Rights) meeting on replication of the VINCI pilot on fair recruitment of migrant workers; discussion on common stakes and companies’ employment of migrant workers.
June 3: B4IG workshop (detailed agenda coming soon).
Thanks for reading, and be sure to follow B4IG on Twitter and LinkedIn - we’re looking forward to moving down the path to inclusive growth with you!
B4IG Team