Impact Is Essential For Your Success. Read This To Find Out Why.
Impact Collective’s definition of impact and our 6 themes for 2020.
Businesses command resources that influence the world for better or worse. To put things in perspective, the world’s 500 largest companies generated a combined $32.7 trillion in revenues and $2.15 trillion in profits in 2018. Let’s not even bring up the number of people they employ (69.3 million) or the number of countries they represent (34). As an intrinsic part of society, their choices of how to make money shape the lives of the employees, partners, and consumers on whom they depend, which — in today’s globalized context — extends beyond national borders.
It’s no secret that companies which profit at the expense of communities and the environment threaten the very elements that underpin their own existence, especially given the growing number of challenges we are facing (climate change, inequalities, global pandemics, poverty ,youth unemployment, etc.). Business as usual simply does not cut it.
Beyond delivering financial returns, great companies invest in the future while being aware of the need to invest in people and society, as well as nurture and protect our planet.
Impact Collective was created for this very purpose. Our mission is to enable those with great business potential to internalize impact strategies so that together, we can exponentially foster smart economic growth and create meaningful impact.
What is IMPACT?
Impact Collective defines “impact” as creating shared value through the delivery of long-term value in financial, environmental, social and ethical terms.
In this sense, the value created by a company should be measured not just by short-term profits or paychecks, but also by how it sustains the conditions that allow it to flourish over time.
Pulling from Harvard Professors Michael E. Porter and Mark R. Kramer’s concept of creating shared value (CSV), the first step to CSV starts with identifying all the societal needs, benefits and harm that are or could be embodied in your company’s products/services. Companies that conduct ongoing explorations of these elements will discover new opportunities for differentiation and repositioning in traditional markets, as well as recognize overlooked gaps leading to new markets.
Porter and Kramer were onto something big with CSV and big business has caught on over the past decade, with corporations such as Lego or Danone having integrated the concept into their strategies.
But, how can startups use this concept to build business models that incorporate social impact at the foundation?
For Impact Collective, this means going beyond Corporate Social Responsibility (CSR) strategies that usually deal with social and environmental concerns after-the-fact, and actually weaving impact throughout a company’s business strategy.
Doing so acknowledges the fact that the competitiveness of a company and the health of the communities around it are mutually dependent. Principles such as protecting human rights, preserving the environment and conducting ethical business, among others, are all considered essential to good business.
Recognizing and capitalizing on these connections between economic, environmental and societal progress has the power to redefine the way we do business so that we can meet our present needs without preventing future generations from meeting their own.
Our framework for evaluating IMPACT
In line with Citypreneurs’ mission, Impact Collective uses the UN Sustainable Development Goals (SDGs) as the framework to measure impact, particularly in the context of cities where the majority of the world resides.
These global goals comprehensively cover all three pillars of sustainable development — social, economic and environmental — while touching upon new challenges ranging from climate change to responsible consumption, economic inequality and justice, among others. They are designed to interlink with each other so that progress in one area does not cause negative effects in others.
Each of the 17 Goals states an overall objective, which is further defined by a list of Targets (169 in total). All targets are assigned indicators (232 in total) that serve as ways of measuring the success and progress of the goals.
As a global shared measurement, the SDGs were designed for and approved by governments. They also constitute a global framework for measuring business contributions to society — how companies can ‘win with purpose’.
Businesses around the globe possess a large stake in achieving the SDGs. This is not only because the global goals aim to end poverty and create a life of dignity and opportunity for all, but also because they present profitable opportunities — estimated to be worth at least US$12 trillion per year by 2030 — for business-led solutions and technologies to be developed and implemented for addressing the world’s biggest challenges.
As such, startups that weave impact throughout their business model will be able to reap additional benefits and support from both the public and private sectors by aligning their impact metrics with the SDGs.
Who is Impact Collective looking to invest in?
Impact Collective has created a new and radical investment model that relies on the ‘wisdom of the crowd’ to democratize capital allocation. Regardless of where they come from and whether they are investment professionals or not, we believe people ‘collectively’ have the intelligence to tell which companies or projects make better impacts on our society and, ergo, which ones are best-suited to receive investments and community support.
The aim of our community-driven approach is to achieve significantly enhanced diversity in the decision-making landscape for sourcing inclusive solutions with greater financial performance, as well as scale positive impact for people and the planet.
Using the framework of the SDGs, we want to invest in startups that place as much importance on making profit as nurturing and protecting our planet, developing the right intellectual resources, creating a strong and motivated workforce, and supporting stable societies.
This can be done in many ways, such as producing goods and services that improve the lives of users; providing jobs and enhancing workers’ quality of life; and developing a strong network of suppliers and business partners, among others.
In 2020, Impact Collective is looking to help accelerate the achievement of the SDGs, particularly in cities in Asia, by supporting startups whose work falls under the following 6 themes:
INCLUSIVE HEALTH AND QUALITY OF LIFE
Improve health and quality of life for all, at all ages.
By 2050, one in four people in Asia and the Pacific will be over 60 years old. The number of older persons is expected to increase, from an estimate of 548 million in 2019, to nearly 1.3 billion by 2050.
People will face challenges around accessibility, health and inclusion, and will be looking for innovative solutions to help them age well.
Given the current Covid-19 outbreak, it is especially important to improve accessibility to healthcare services and life-saving procedures, as well as create sustainable innovation in cities, to ensure quality of life across all generations.
We are calling for solutions that include, but are not limited to: accessibility, community integration, health tech, COVID-19 emergency preparation and response, preventive care and treatment delivery.
CIRCULAR ECONOMY AND THE FUTURE OF WASTE MANAGEMENT Change the way we manage waste and resources to protect our planet
The growth of Asia and the Pacific’s urban economies is tied to rapid unplanned urbanization, as well as rising unsustainable lifestyles and consumption patterns.
The region accounts for over 60% of key fast-moving consumer goods sectors in the world, which results in large amounts of pollution, waste production and resource mismanagement.
Adopting solutions that support a circular economy, which is estimated to generate $4.5 trillion in value, will require us to design out waste and pollution, keep products and materials in use, as well as regenerate natural systems.
We are calling for solutions that include, but are not limited to: pollution reduction, waste collection, waste processing, waste disposal, waste to energy (WtE) technologies, tracking technologies, recycling technologies, green fashion, e-waste recycling, biodegradable products, clean production, and microplastic-free products.
SUSTAINABLE AGRICULTURE AND FOOD
Adopt sustainable food and agriculture practices to meet present and future needs
Most countries in Asia and the Pacific have slowed down or even reversed progress to ending hunger, achieving food security, improving nutrition and promoting sustainable agriculture.
However while smallholder farmers and their families do make up a very large portion of the poor and hungry, cities in the region have seen a rise in urban malnutrition, including nutrient deficiency and obesity.
Shared rural-urban actions across sectors — such as food systems, health, water, sanitation, social protection, education and disaster resilience, in particular climate change and extreme weather-related shocks — will not only produce lasting effects on the region’s economies, but also transform food producers into entrepreneurs and stewards of the environment.
We are calling for solutions that include, but are not limited to: sustainable agriculture, agrotech, biodiversity conservation, natural resource management, ecosystem resilience, climate-related disaster risk reduction, farming infrastructure, water quality and sources, nutrition, and food accessibility.
DIGITALIZATION FOR EQUAL OPPORTUNITIES FOR ALL
Utilize technology to provide equal opportunities for all
Asia and the Pacific has the largest number of internet users worldwide, reaching nearly 2.1 billion in 2018.
In Southeast Asia alone, 3.8 million people become new internet users each month, resulting in forecasts for Southeast Asia’s digital economy to reach $240 billion by the year 2025.
However, due to diverse economies and different speed of technology adoption across the region, many are still unconnected and are at risk of being left behind. Building up infrastructure and ensuring the digital readiness of different groups in societies, particularly rural women, are essential for bridging the digital divide and opening up transformative digital opportunities for all.
We are calling for solutions that include, but are not limited to: digital accessibility, communications technology (ICT) skills, STEM skills development, govtech, fintech.
FUTURE OF WORK AND ECONOMIC GROWTH
Foster more sustainable cities through inclusive communities and economical businesses
Technological developments, as well as parallel megatrends such as urbanisation, climate change and globalization are rapidly redefining the nature of work and jobs.
While this is creating new business models and new ways to engage in work, automation and computerization are also replacing tasks and leading to job loss.
To achieve inclusive growth, we must prepare people for future work transitions, particularly women, persons with disabilities, the elderly and youth, among others, for them to take advantage of opportunities in the STEM and green fields, as well as the gig economy. Indeed, workers will likely have many gigs over the course of their careers and will have to be lifelong learners due to increasing blurred lines around formal employment.
We are calling for solutions that include, but are not limited to: reskilling and continuous skills upgrading for workers, diversity and youth employment, training and job information-sharing, labor migration services, accessible work-from-home tools, emotional intelligence skills, green skills, tourism tech, and gig economy.
GREEN ENERGY AND THE ENVIRONMENT
Protect the environment through green energy, infrastructure and transportation solutions for cities.
Economies in Asia and the Pacific consume more than half of the global energy supply and include important oil and gas producers.
Today, the region is dealing with the consequences of local pollution, climate change, and volatile energy prices, due to its over-reliance on carbon-based energy sources.
Efforts must be made to ensure equal access to energy for all, integrate clean energy in national and regional energy systems, and build green infrastructure and transportation options to ensure sustainable cities throughout the region.
We are calling for solutions that include, but are not limited to: green energy, renewable energy tech, air pollution reduction, intelligent transport solutions (ITS), green cooking fuels and tech, green infrastructure, and smart energy management systems.
Stable and prosperous societies and business go hand in hand. The next decades must be transformative to address all of the challenges we face, and business is a vital part of this transformation.
By making the right decisions and working together, we can change the path we are on and make a quantum leap towards a new sustainable, inclusive, prosperous future for all.
Apply now to be part of Impact Collective’s inaugural cohort by 12:00 AM IDLW (the world’s last time zone) on 20 August 2020.
IMPACT COLLECTIVE IN A NUTSHELL
[Why we exist] Our PURPOSE
is to transform the way we do business so that we can meet our present needs without preventing future generations from meeting their own. Business as usual will not cut it, and we need to take action now to create a better world for everyone within our planetary boundaries.
[What we aim to do] Our VISION
is to empower our global community to support technology that makes life better for everyone everywhere. We believe that inclusion is key to creating shared value, finding the best solutions to our problems and giving everyone ownership in achieving inclusive and sustainable development.
[How we are doing it] Our MISSION
is to invest in impact startups and scale their positive impact for people and our planet. We want to enable those with great business potential to internalize impact strategies so that together, we can exponentially foster smart economic growth and create meaningful impact.
