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Inclusive
Business
Filippo Veglio
Tokyo, 2 October 2014
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Presentation overview
• About WBCSD
• WBCSD & inclusive business
How do we define it?
What is the business case?
Golden rules
Revisiting basic business questions
Our focus: scale up action, awareness,
skills…in partnership
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World Business Council for Sustainable
Development (WBCSD)
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WBCSD objective: helping make more
sustainable companies more successful
Develop innovative &
value-creating
business solutions
Improve the business
case for sustainability Facilitate collaboration
for true market
transformation & open-
source approach
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WBCSD Vision for 2050: 9 billion people,
living well, within the limits of the planet
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• Set the sustainable business
agenda for the decade as a
platform for joint action
• Help businesses understand the
social and environmental
challenges most in need of
attention
• Focus on business solutions
Action2020 priority areas
Moving from Vision 2050 to Action2020
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Sustainable business solutions that target
the base of the pyramid by expanding
access to goods, services, and livelihoods in
commercially viable ways.
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: one of the solutions
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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: going beyond philanthropy and CSR
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• Sourcing of raw materials from small-scale suppliers
SABMiller, Natura, Unilever, Coca-Cola, PepsiCo, Mondi,
ITC, Nestlé
• Innovative distribution models
Coca-Cola, Unilever, Nestlé
• Investment in local enterprise development
Anglo American, Vale, BHP Billiton, BP
• Access to energy
Siemens, GDF SUEZ, Philips, ABB, Eskom,
Schneider Electric, Shell, Novozymes
• Financial & other transactions via
mobile phones
Vodafone, Nokia
• Affordable housing
CEMEX, Lafarge, Holcim
• Food fortification
BASF, DSM, Unilever, Nestlé
Manifold examples from WBCSD members
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Competitive advantage: market entry &
share in 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
What is the business case?
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What is the “win-win”?
Value for business:
INNOVATION, GROWTH,
COMPETITIVENESS
• Generating profits
• Developing new markets
• Creating innovation
• Expanding the labor pool
• Strengthening supply
chains
Value for low-income
populations: GREATER
ACCESS, CHOICE, and
OPPORTUNITY
• Meeting basic needs
• Enabling them to be more
productive
• Increasing incomes
• Empowering communities
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The “golden rules” of inclusive business
Innovate along the value chain and do not lose sight of the business fundamentals
Doing business with the poor: A field guide. WBCSD (2004)
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Revisiting basic business questions
What are our drivers and motivations?
How do we shift mindset?
Do we understand the real needs of the market?
Do we have the right product / service to offer?
How do we finance the investment?
How do we ensure that there is demand?
How do we ensure affordability?
How do we reach our customers?
How do we collect revenues?
How can we improve our supply chain?
How can we stimulate related economic activities downstream?
How do we scale up or replicate?
How do we measure success?
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Action – “Think global, act local” by
catalyzing initiatives on the ground &
mobilizing new companies, such as here
in Japan with leadership of Fujitsu
Awareness – Illustrate best practices,
lessons learned, success factors,
solutions to overcome barriers
Skills – Training programs, webinars, etc.
Contributing to the socio-economic and
environmental priorities of our
Action2020 platform
WBCSD & inclusive business: focused on scaling up…
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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…
2013
Scaling up
inclusive
business:
Solutions to
overcome internal
barriers
E-learning
programs &
webinars
Latin American
Leaders’ Network
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WBCSD Global Network partners
Asian Development Bank
Inter-American Development
Bank
International Finance Corporation
GIZ
Business Call to Action
Business for Millennium Development
Business Action for Africa
BOP Learning Labs
Working with a wide range of partners
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More information
• www.inclusive-business.org
• www.wbcsd.org/social-impact.aspx
• Monthly e-newsletter
• Filippo Veglio
Director, Social Impact
Tel. +41 22 839 31 08
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