WBCSD work in inclusive business targeting the base of the pyramid - Overview presentation - January 2014

Many companies are engaging with low-income communities (the so-called base of the pyramid) in the developing world as a way to meet the company’s needs for growth and profitability, while addressing societal needs. The World Business Council for Sustainable Development (WBCSD) coined the concept of 'inclusive business' in 2005 to describe profitable business ventures that are also good for development. More specifically, inclusive business engages low-income communities across a company’s value chain – through direct employment; the development of suppliers, distributors and service providers from low-income communities; or through the innovative development and delivery of affordable goods and services that address unmet needs of low-income communities. This slide show provides an overview on the WBCSD’s work program in the area of inclusive business.

1. Inclusive business Overview presentation – January 2014

2. Overview About the WBCSD Inclusive business WBCSD model Business case Examples WBCSD & inclusive business Current activities and partners Latest focus: overcoming internal barriers to scale Links to more information

3. A CEO-led organization of forward-thinking companies that galvanizes the global business community to create a sustainable future for business, society and the environment World Business Council for Sustainable Development (WBCSD)

4. Addressing the lack of reliable access to basic goods, services, and income generation opportunities at the base of the economic pyramid (BOP) is one of the key development challenges of our times…and a significant business opportunity Inclusive business solutions… Produce affordable goods and services that meet basic needs Engage local labor and entrepreneurs in supply chains and distribution channels Enable access to energy, communications, finance, insurance, etc. Source raw materials from small-scale producers Increase the size of the BOP’s wallet Inclusive business

5. Business development & Socio-economic benefit DEMAND Successive upgrading leading to demand for goods and services Purchasing power Local employment job creation , local markets and resilience to economic shocks SUPPLY Products and services that meet the needs of poorer communities New business models Fulfillment of basic needs e.g . water and sanitation , access to energy , shelter , food , education , connectivity WBCSD model: g oing beyond philanthropy and CSR

6. Competitive advantage : market entry & share in a rapidly growing market segments Security of supply : stronger and more productive suppliers to secure reliable access to resources Expanding the labor pool : access to appropriately skilled and more cost effective local labor Innovation : new ways to provide goods and services with potential for reverse innovation in more developed markets License to operate : contribute to social cohesion and enhance reputation as a partner of choice Business case

7. Sourcing of raw materials from small-scale suppliers SABMiller , SC Johnson , Natura, Unilever, Coca-Cola, PepsiCo , Mondi , Bayer, ITC, Nestlé, Monsanto Innovative distribution models Coca-Cola, Unilever, P&G, Nestlé Investment in local enterprise development Anglo American , BHP Billiton , BP Access to energy and water Siemens, GDF SUEZ, Philips, Grundfos , ABB, Eskom , Schneider Electric, Greif Clean cooking fuels Novozymes , Shell Financial transactions via mobile phones Vodafone, Nokia Affordable housing CEMEX, Lafarge, Holcim Food fortification BASF, DSM, Unilever, Nestlé, P&G, AkzoNobel Manifold examples from WBCSD members

8. WBCSD & inclusive business: Current activities… Illustrate best practices, lessons learned, success factors to overcome internal & external barriers to scale Develop toolkits (training programs, webinars, etc.) to support awareness raising and implementation by company managers Apply the principle of “Think global, act local” by catalyzing action on the ground in collaboration with the WBCSD’s Regional Network partners Executives showing & telling locally Engaging multilateral development banks & policymakers Building and/or strengthening “hubs” that can kick off and implement local working groups & initiatives with the support of partners

9. WBCSD Regional Network partners Asian Development Bank Inter-American Development Bank GIZ Business Call to Action BOP Learning Labs … with the following partners…

10. Doing business with the poor: A Field Guide Finding capital for sustainable livelihoods businesses A business guide to development partners Business for Development Promoting SMEs for Sustainable Development Inclusive Business blog Measuring Impact Framework WBCSD-SNV Inclusive Business blog Inclusive Business Alliance with SNV Inclusive Business Challenge Inclusive Business in Latin America Inclusive Business and the MDGs 2005 2007 2008 2009 2010 2011 Video library 2004 2012 ICT: An enabler for inclusive business solutions Business solutions to enable energy access for all …building on a long history of activities

11. Latest focus: how to overcome internal barriers to scale? Internal organizational barriers : Much less commonly acknowledged or discussed Solutions lie within direct control of companies Study launched in November 2013: builds on hands-on experience of a dozen WBCSD members : CEMEX , Grundfos , ITC, Lafarge, Masisa , Nestlé, Novartis , Novozymes , SABMiller, Schneider Electric, The Coca-Cola Company, Vodafone Contribution to the WBCSD’s Action2020 platform Focused on scaling up business solutions to sustainability challenges

12. Key internal barriers & solutions to overcome them

13. Inclusive business blog www.inclusive-business.org Action2020 platform http :// action2020.org/business- solutions/inclusive-business-models WBCSD contact point Filippo Veglio [email protected] Tel. [phone] More information