Inclusive

Business

Filippo Veglio

Tokyo, 2 October 2014

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

2

World Business Council for Sustainable

Development (WBCSD)

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

5

WBCSD Vision for 2050: 9 billion people,

living well, within the limits of the planet

6

• 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

veglio@wbcsd.org

Tel. +41 22 839 31 08

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