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Social Impact Practice

Meeting

NOVEMBER 16, 2018


Welcome!
Objectives for our meeting

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
​Share content ​Create links and ​Inspire
and knowledge affiliation

2
BCG's Social Impact: We are addressing all 17
Sustainable Development Goals

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
3
​Number of undernourished people in the world (M)
​% of world population
​950 ​14.5%
​13.8%
​13.1%
​12.6%
​12.2%
​11.8% ​
​900 11.5% ​11.3%
​11.0% ​10.7%
​911 ​10.6% ​10.8%
​10.9%

Overall the ​850


877

world made
​855
​840 821

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
​800 821
progress in 813
806
795
784 784
​804

fighting hunger ​750

in the last ​700


decade ​2005 ​2006 ​2007 ​2008 ​2009 ​2010 ​2011 ​2012 ​2013 ​2014 ​2015 ​2016 ​2017

Source: FAO 4
5

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
​Out of school population among children of primary school age (M)
​100
​97

​90
​80
​81
​76 ​75
Access to
​72
​60 ​64 63 ​63 ​63 62 62 62 63 63

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
61
primary
education ​40

improved over
past 20 years ​20
​2000 ​2002 ​2004 ​2006 ​2008 ​2010 ​2012 ​2014 ​2016

Source: UNESCO 6
7

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
now a
Functional
Practice Area
Social Impact is

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
As a Practice, will have six global focus segments,
plus local work
​TSI / Sustainability

Global Development ESG/Impact Investing

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Climate and Environment Global Health

​Education

And we will continue to address humanitarian emergencies 9


As a Practice, will have six global focus segments,
plus local work
​TSI / Sustainability

Global Development ESG/Impact Investing

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Climate and Environment Global Health

​Education

And we will continue to address humanitarian emergencies 10


Overall strong year so far – local work at lower level
compared to last year
SANITI
ZED

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
11
SANITI
ZED
Most offices are active and investing in Social Impact
Local and global Social Impact investments relative to 1% of theoretical capacity 2018 YTD October

North America WESA CEMA Asia Pacific


296% 351% 89% ​142%
200%
331%
170%
278% 87%
163% 73%
138% 193%
82%
128% 187% 35%
126%
168% 53%
126%
32%
115% 158%

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
47%
108% 116%
108% 18%
113% 45%
96%
57% 93% 0%
36%
57% 91%
​48% 36% 32%
​28%
​21%
26%
​1% 23%
0%
2% theo
cap

​Global
​Global Local
​Local
12
​ Marketing and communications: Pursuing media coverage in relevant outlets
globally

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13
Marketing and communications: Continued presence across multiple social
media platforms

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Note: Significant
engagement on LinkedIn
(450+ "likes")

14
Social Impact Immersion program: Class of 2018-2019

Roy Hanna Paulina Ponce de Leon Supriya Thumpasery Melanie Chow


Project Leader, Philadelphia Project Leader, San Francisco Consultant, New Jersey Consultant, New York

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Kate Ballinger Shloka Sharan Arno de Jager Maria Raji
Consultant, Boston Associate, Toronto/Chicago Consultant, Amsterdam Consultant, Casablanca

Jessica Hart Martin Sieg Merle Stepke Alice Wang


Associate, London Consultant, Cologne Consultant, Copenhagen Junior Consultant, Melbourne

15
NAMR WESA CEMA AP
Social Impact ECT

Frauke Uekermann Adrien Portafaix Arjun Nath


Principal, Stuttgart Principal, Paris Project Leader, Toronto
TSI/Sustainability, Environment, TSI/Sustainability, TSI/Sustainability, Development
Development, Ag/food/nutrition Development
WFP, YSB WWF, Save the Children

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Jessie Duncan Alex Meyer zum Felde Alex Baic Qahir Dhanani
Project Leader, New York Principal, Hamburg Principal, Munich Associate Director, Washington DC
Global Health TSI/Sustainability, Environment Social Impact G&A Public Sector, Global Development
WBCSD, Moore Foundation SOS, GIZ, Impact Hub World Bank, UN

16
Social Impact Practice Meeting
Agenda: Barcelona, November 16, 2018 (I)
Topic   Presenters
Welcome and update on Social Impact Practice Area Wendy Woods
The TSI / Sustainability Hour Hosted by Dave Young
• Welcome to the TSI/Sustainability Hour Dave Young
• TSI/Sustainability - Our Offering for Client Impact and Value Creation Doug Beal, Alex Meyer zum Felde
• Slam of recent work
– Oil and gas: Producing and recycling plastics Alex Meyer zum Felde
– Consumer: Circular economy in product design - from shoes to shirts Alex Meyer zum Felde
– Investors: Bain Capital’s Double Impact Fund - pursuing innovating ways to Nithya Vaduganathan
upskill the workforce

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
– Financial Institutions: Bringing payments to micro merchants Shalini Unnikrishnan
– Societal Impact from Technology and Media Doug Beal
– Banking for better Pim Hilbers
– Q&A
• Tier 1: TSI Measurement & Enhancement Arjun Nath

Business highlights
• Global health: Transforming a Global Health Organization Trish Stroman, Thomas Payen
• Global Development: Economic empowerment efforts across sectors Shalini Unnikrishnan
• Risk management in the social sector Duncan Martin

17
Social Impact Practice Meeting
Agenda: Barcelona, November 16, 2018 (II)
Topic   Presenters

​Business highlights, continued Abhishek Gopalka


• Education: Digital transformation of Early Childhood Education delivery
• AG/nutrition/food: Smart Simplicity to reduce stunting Charmian Caines
• Environment: Blockchain for traceability in food supply chains and Nicolas Kachaner, Adrien Portafaix
tapping the business benefits of Sustainable Water Investments

Innovation with Purpose Alfredo Zolezzi, Founder and Chief Innovation Officer,
AIC Technologies; President, Alfredo Zolezzi Foundation
Hosted by Jorge Becerra

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18
Alfredo Zolezzi, Founder and Chief Innovation Officer,
AIC Technologies; President Alfredo Zolezzi Foundation
Alfredo Zolezzi is an innovator and industrial designer working to leverage advanced science and innovative
business models to accelerate poverty eradication. He is Founder and Chief Innovation Officer of AIC
Technologies, a private initiative dedicated to the innovation that links advanced science with industry in high
technical and economic impact solutions, based in Chile and the US.

At AIC, he leads a team of experts in physics, chemistry, nanoparticles, plasma, electromagnetism, and
industrial design devoted to developing ground-breaking technologies. His remarkable breakthroughs include
the Plasma Water Sanitation System (PWSS), a unique water treatment technology that transforms a
continuous flow of polluted water into non-thermal plasma, eliminating pathogens and many others.

Alfredo is also President of the Alfredo Zolezzi Foundation (AZF) a non-profit organization dedicated to

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
promote and enable the link between technology and innovation with the largest problems facing humanity.
AZF's objective to 2030 is to install at least 1 million potable water solutions, changing 300 million people’s
lives through water, training hygiene skills, bringing connectivity to communities as well as, health, dignity
and happiness.

His breakthroughs have led him to appear in media including The Wall Street Journal, The Washington Post,
The Chicago Tribune, Forbes Magazine, Reuters, The Times of India, CNBC, BBC, and CNN-Español. Alfredo has
Friday, Nov 16th received many awards from the US, Chile and Russia.
11:40 – 12:30
Alfredo sustains that in the 21st century knowledge is a commodity. While researchers transform money into
knowledge, he aims to turn knowledge into value. Technology is advancing rapidly, but for the poorest people
Room A, Lower Ground Floor in the world, life has not changed much. There are hundreds of millions of people that still live in a state of
perpetual crisis. He firmly believes that incremental innovation is not enough; disruptive innovations are
Palau Convention Centre urgent to resolve the world greatest humanitarian problems.
19
The TSI / Sustainability Hour
20

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Welcome to the
TSI/Sustainability Hour
21

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Our ambition for clients …

Total
Shareholder/
Investor
Returns

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Total Impact on Society
22
How ? Bring together the best of …

Societal impact / sustainability insight

+
Industry expertise and Innovation
+

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Competitive advantage / value creation focus

+
Investor and capital markets perspective

+
Purpose
23
24

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
BCG helps clients contribute to SDGs and well-being
Catalyze innovation

Public Shareholder
Sector Value

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Mobilize capital

Private Social Social


Longevity
Sector Sector Value

Engage new models Reshape corporate performance


Source: BCG Perspective and strategy 25
Clients and interest across industries

26

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
TSI/Sustainability expert team

​ David Young ​
Holger Rubel ​ Wendy Woods ​ Shalini Unnikrishnan ​ Douglas Beal ​Alexander Meyer zum Felde ​ Adrien Portafaix
​ Senior Partner and ​ Senior Partner and ​ Senior Partner and ​Partner and Managing Director ​ Director ​ Principal (ECT) ​ Principal (ECT)
Managing Director Managing Director ​ Managing Director ​ TSI/Sustainability ​ TSI/Sustainability ​ TSI/Sustainability ​ TSI/Sustainability
​ TSI/Sustainability ​ Global Topic Leader Green ​ Global Practice Area
Energy & Sustainability Leader Social Impact

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
​ Frauke Uekermann ​ Arjun Nath ​ Kati Fuisz-Kehrbach ​ Elena Corrales ​ Susana Margolin ​ Miriam Benedi Díaz ​ Bendicte Montgomery
​ Principal (ECT) ​ Project Leader (ECT) ​ Knowledge Expert and ​ Lead Knowledge Analyst ​ Senior Knowledge Analyst ​ Senior Knowledge Analyst ​ Senior Knowledge Analyst
​ TSI/Sustainability ​ TSI/Sustainability ​ Team Manager ​ TSI/Sustainability ​ TSI/Sustainability ​ TSI/Sustainability ​ TSI/Sustainability
​ TSI/Sustainability

​ Laura Roca ​ Emmanuel Nazarenko ​ Udo Jung ​ Marc Schmidt ​ Diederik Vismans ​ Chris Holmes ​ Brenda Thickett ​ Viktor Lee
​ Senior Knowledge Analyst ​ Senior Partner and ​ Senior Partner and ​Partner and Managing Director​Partner and Managing Director ​ Senior Advisor ​ Global Practice ​ Global Practice
​ TSI/Sustainability Managing Director Managing Director ​ TSI/Sustainability (AP) ​ WWF Collaboration Node ​ Water & Sanitation Topic Management Director ​ Management Director
​ Water Topic Expert ​ Chemicals Topic Expert Expert Social Impact ​ Strategy

27
and Value Creation
TSI/Sustainability - Our
Offering for Client Impact

28

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Creating societal impact & shareholder value: Work in
TSI/Sustainability topic map Progress

Purpose
Corporate TSI/Sustainability Strategy & Narrative
Environmental Impact Social Impact Governance Impact
Circular economy: Waste, resource Human rights & inclusiveness in
Corporate governance & ethics
mgmt & recycling value chain & workforce

Safety & well-being Influencer of change: advocacy


Energy, emissions & climate change strategy & policy shaping

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Underlying impact of product
Water
Anti-corruption
Socio-economic development
Biodiversity & land
Access & inclusiveness in products & Integrated reporting
services

External Corporate foundation Stakeholder engagement


Cross-cutting

External Alignment with SDGs Capital allocation


partnerships & sponsorships & communications

Organization Employee engagement in Business case & External & internal


Internal
& governance TSI/Sustainability activities value proposition impact measurement

29
Slam of recent work
30

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
recycling plastics
Oil and gas: Producing and

31

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
2018: The year we plunged into the trash

32

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
​Only ~60 MT of the ~260
​Text ​Text

MT plastic waste
produced in 2016 were
recycled, leaving ~200 MT

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
of plastic incinerated,
landfilled, or as litter

33
ExxonMobil facing pressure as concerns about global
plastic waste crisis heat up
Call for producer responsibility Increasing marine plastic awareness Tougher regulation on plastic use

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
"Is plastic waste the next global "Oceans under biggest threat in human "Europeans will have to recycle half their
environmental crisis? " history, warns Sir David Attenborough" waste by 2025"

"Businesses and government need to take "Plastic bag found at the bottom of the "EU to ban plastic straws, cutlery and
responsibility for disposable cup Mariana trench" balloons"
recycling, says anti-waste boss"

34
Photo credits (L-R): EyeEm, Greenpeace, Maharashtra Local Press
Click icon below to insert an image or remove this placeholder to use the whites

How much
would you pay
for a ton of

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
plastic waste?

35
Pyrolysis is a form of Chemical Recycling to convert
plastic waste to fuel or feedstock for chemicals

• Reasonably good calorific value


Natural • Usually recycled to provide energy for heating
​10 – 15% during pyrolysis
​gas
​ Mixed plastic
waste1 heated in

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
• Target product stream to maximize output
the absence of ​Liquid ​70 – 80%
• Liquid that is used as feedstock, typically for
refinery or a petro chemicals plant
O2 to ~400oC to
convert waste
• Inert solid waste that is not decomposed
into crude ​Char ​10 – 15% • Sent to landfills for disposal or recycled for roads,
some examples of usage as fuel also exist
​Pyrolysis output

1. All types of plastic waste except PET and PVC can be treated through Pyrolysis; Source: Conversion technology: A
complement to plastic recycling, 4R Sustainability, Inc., 2011; Plastics to oil products, Zero Waste Scotland, 2013 36
Resulting in a win-win-win for all involved

12%+ Plastic waste $M


diverted

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
returns on pyrolysis NCC
​Business case and high-level entry
strategy for selected markets
Linking clear business cases to Established strong partnership and
​An understanding of how to
positive impact on environment thought leadership
categorize potential markets and a
easy-to-use tool to build initial
economic assessment

37
shoes to shirts
in product design - from
Consumer: Circular economy

38

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
What if we can
make new
products out of
this?

39
Or even prevent it
while designing …

40

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We serve clients along the full cycle …

SANITI
ZED
​ Raw materials

​ Recycle/
New input

​ Collect

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​ Design

​ Use

​Produce

​ Distribute

Proposal/initial
Logo client workshop 41
​We have covered
​Plastic waste value chain and recycling technologies
• Pyrolysis
• Mechanical

+30 ​Waste management approaches and solutions

​Waste-to-Energy
cases and

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
proposals in ​Waste-to-Chemical

2018 ​Food waste and loss

​Glass cullet

​Circular product design


42
A dedicated Circular Economy Expert team to support cases & business
development

​ Core team
New!

​Holger Rubel ​Alexander ​Kati ​Elena Corrales1 ​Miriam Benedi Díaz ​Laura Roca

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Meyer zum Felde Fuisz-Kehrbach

​Senior Partner and ​Expert Principal ​Knowledge Expert and ​Lead Knowledge ​Senior Knowledge ​Senior Knowledge
Managing Director ​Global Topic Expert Team Manager Analyst Analyst ​Analyst
​Global Topic Leader for CE & Sustainability

​ Strong partners

1. Currently on LoA 43
Investors: Bain Capital’s
Double Impact Fund -

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
pursuing innovating ways to
upskill the workforce
44
45
40K
170K

Annual Revenue
Enrolled Learners

Graduates in 2017

$100M

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Allied
Health as
focus area
for growth

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Annual completions in allied
health declining 2% a year

Acute shortage of qualified


talent in hospitals & nursing
homes

Opportunity to upskill entry


level positions with a new
Penn Foster offering

46
on-the-go…
Short-form content

…paired with externship support


47

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
merchants
Financial Institutions:
Bringing payments to micro

48

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
SANITI
ZED

Setting a new bold agenda with a TSI lens

An ambition to refocus a fragmented portfolio of


activities into a singular bold ambition in a common
platform for foundation and business actions

A TSI journey
with a large Transitioning the portfolio and the organization

global payments Effort to redesign the portfolio - planning to

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
transition or scale numerous small efforts,
company launching first major grant and defining a new org

Current – Novel field research to design programs

Ethnographic and behavioral insights sought in deep


research on micromerchants in four countries to
uncover novel insights for new solutions 49
Societal Impact from
Technology and Media
SANITI
ZED

50

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Banking for better
SANITI
ZED

51

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Enhancement
Tier 1: TSI Measurement &

52

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
KSF's enabled through
TSI Key Success Factors goals and measurement

CEO leadership

Clear vision, practical ambition and ​Powerful, data-driven narrative


cohesive narrative focused on societal outcomes

​Measurement helps quantify the


Strategic Clear business case business case and link TSI to
Robust TSI direction
and
business value
​Identification of pockets to
measurement activities Portfolio of High-Impact, Scalable
Initiatives
unlock large TSI and business
value

are instrumental Strong partnerships to amplify the impact


​Better selection of partners and
guidance of partnerships to

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
in ensuring TSI enhance impact

success Supporting Goals and Stakeholder


TSI integrated
​Engage stakeholders and drive
into investor subsequent shareholder value
actions measurement engagement
engagement

​Clear targets and progress to


Strong governance
Structure
& org structure help facilitate TSI governance
Structural
factors ​Tie incentives to TSI targets and
Defined responsibilities & Incentives progress and incorporate into
scorecards and year plans
Source: BCG interviews and analysis 53
Traditional impact … which our approach aims
measurement approaches fall to solve
short on 3 key dimensions…
​Holistic measurement of impact
​Narrow scope of impact measurement • Going beyond company walls, to supplier
• Often missing impact of use of products and
impact, product usage, end-of-life, etc.
services, and impact in value chains beyond
• Through in-depth value-chain analysis
company operations

​Deeper measurement of true societal


​Shallow depth of impact measurement

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
• Often remaining at 'inputs' or 'outputs' that
outcomes
• Identifying causal links to societal impact
reflect the effort or intermediate effects rather
• In-depth driver-tree analysis to identify
than the results
direct and indirect outcomes

​Insufficient usage to drive business value ​Systematic method to drive value
• Narrative often not insightful or catchy to drive • Engaging narrative tied to outcomes, easily
strong stakeholder engagement understood by stakeholders
• Little business innovation driven by TSI • Structured approach to drive innovation
• TSI often not embedded into business • While embedding TSI in core business
54
Our approach: TSI measurement through three lenses
Lens 1 Lens 2 Lens 3

Understanding the impact of Understanding the different Drive deeper insight on


different clusters of activity dimensions of impact impact measurement
What impact is driven by the different What are the types of societal impact What is the tangible outcome on
activities of the company? that the company is driving? society? How can this be measured?

1
Total societal impact Drive towards true impact for
​ Economic
business and society

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
+ value
Input Output Outcome
​Consumer
2 ​Impact of 3 ​Impact of ​ Governance
​ Total well-being
operations ​products and
​ Societal
​and mgmt services
Impact
Identify causal links
4 ​ Societal Use to improve, engineer
enablement ​Ethics and communicate
​Impact of
targeted
​Environment
programs

55
• Deep understanding of measuring TSI
(for company, for a product, etc.)
​ Understand &
Measure

• Use measurement to innovate, enhance


Our approach and engineer business & societal value

spans 3 key ​ Enhance &


Engineer

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
steps

• Unlock value through communication


• Integrate TSI into business operations
​Communicate &
engage

56
Tailored methodologies that can be applied based on
client context
Impact of targeted SI
Company-wide TSI Product & service TSI programs
​Measuring & enhancing the total ​Leverage TSI as a lens to drive ​Measuring and improving
impact of a company innovation of products and effectiveness of targeted SI
services programs
• …to drive understanding of

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
total impact of company • …to develop understanding of • …to understand broader
impact of products & services societal outcomes of
• …to develop mechanisms to programs, going beyond
enhance this impact • …to create innovative immediate outputs
differentiated products and
• …to better leverage impact to services • …to prioritize efforts and
drive business and societal enhance impact
value • …to track and improve their
impact • …to better leverage impact
to drive value
57
Range of TSI measurement Your BCG contacts
materials available Com
ing
David Young
Partner, Boston
Navi soon to Young.David@bcg.com
g at o
r
Holger Rubel
01 Partner, Boston
Perspective on TSI Measurement and Enhancement Rubel.holger@bcg.com
02
TSI Measurement overview Douglas Beal
Sell materials

03 04 05 Director, New York


Product/service Social Impact Beal.Douglas@bcg.com
Company wide
focused TSI program TSI
TSI measurment
measurement measurement Alexander Meyer zum Felde
Principal, Hamburg
06 Meyer.zum.Felde.Alexander@bcg.com
BCG credentials

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
07 Arjun Nath
Library of market examples (incl. excel database) Project Leader, Toronto
Nath.Arjun@bcg.com
10
Appendix of TSI measurement materials Susana Margolin
Support materials

Sr. Knowledge analyst, Boston


11
Industry pack (overview of impacts along value chain, most material Margolin.Susana@bcg.com
TSI themes and innovative industry examples across priority industries)
12 Kati Fuisz-Kehrbach
TSI topic and metrics database Knowledge expert, Hamburg
Fuisz-Kehrbach.Sonja-Katrin@bcg.com
13
Papers, articles, and other resources
Arno de Jager
14
Sample outside-in application of methodology Consultant, Amsterdam
deJager.Arno@bcg.com
58
Business Highlights
59

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Global health: Transforming
a Global Health Organization
SANITI
ZED

60

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Global Development:

efforts across sectors


Economic empowerment
SANITI
ZED

61

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
social sector
Risk management in the

62

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Risk management a hot topic for SI clients

"Sexual harassment and assault rife at United Nations, "Save the Children 'failed' to deal with women's
staff claim" complaints"

"Predators are attracted to aid work" "Eight of 14 rhinos die after move to Kenyan national
park"

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
"Scandal-hit Oxfam faces £16m of cuts" South Sudan: Aid Workers Freed, Humanitarian
Deaths Reach 100 Since December 2013

"Majority of large charities have experienced cyber "Human rights abuses complaint against WWF to be
attacks" examined by OECD"

"Global Fund: $3.8 million fraud, stops aid to Nigeria "World Food Program badly mismanaged special donor
agency" trust funds, auditors say"
63
BCG has assisted several SI clients to build their risk
management capabilities

End-to-end risk management framework and organisation

New, MECE risk taxonomy and pilot implementation in planning,


assessment and monitoring

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Risk management diagnostic and roadmap

64
Shared risk taxonomy

Typical Embedded risk assessment


messages for SI

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
clients Robust crisis management and
communications

Extensive stakeholder
engagement

65
Education: Digital
transformation of  Early
Childhood Education delivery
66

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
The Challenge: training 60K teachers to
deliver Early Childhood Education

Significant motivation and capacity deficits

Honorarium worker with low


educational qualification
Avg. Anganwadi Worker has only attended
school till Grade 10

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Overburdened: delivers multiple
welfare schemes
Delivers 6 services, one of which is ECE

Conventional cascaded training


failing
80% children entering Grade 1 are not
school-ready1

1. Indian Early Childhood Education Impact Study 2013 67


We have customized BCG's Amethyst app to enable and engage front-line workers

Routinize: calendarized Demonstrate: byte-sized videos – Engage: Leaderboard (points


journey of daily activities demonstrate each activity gained for task completion)
68
Consistently high engagement with 2,700 Workers in 2 districts of Rajasthan

Workers are using the app (Sakhi)... ... and they see value in it

1. App is making the job easier


Sakhi helps me understand what exactly I need
Engagement to do – it was tough earlier
80% 80% workers go on the
app daily

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
2. Videos have high impact
...now, I'm able to see the videos and figure
out how exactly to conduct the ECE activity
Task completion
61% 61% report completing 3
ECE tasks daily 3. Gamification is changing behaviours
If I ever fall behind Vimla, I make sure I do all
the activities the next day to get full points!

69
Source: App usage data from Jaipur and Ajmer District as of 10/10/2018
Can Sakhi fundamentally transform the teaching-learning process?

Respond Adapt to workers' learning pace


Planned
Supplement worker instruction

Analyze

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Assess worker knowledge (quiz)
Planned
Assess student learning

Guide Routinize (calendar)


Build capacity (videos) Implemented
Engage (leader-board)
70
Assessments (outcome orientation)
Rapid, byte-sized, child-level assessment after an ECE
activity
e.g. Which of these 4-year olds can identify shapes well?

Example: "Digital report cards" (parent engagement)


Personalized Child-specific outcomes sent via text msg. to parents

student

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
assessments Personalized training needs (capacity building)
Recommendations based on teacher's learning needs -
e.g., "Children in your class are struggling with shape
identification – watch this video for some tips/ ideas"

71
Amethyst can be adapted for many different contexts in Education/ other
Social sector delivery systems

Some examples…

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Enhance capabilities of Establish new Increase affiliation/ Strengthen governance/
teachers/ administrators processes – engagement – discover new insights -
– "on-the-job" aid routinize build communities Tableau-based analyses

72
AG/nutrition/food: Smart
Simplicity to reduce stunting
73

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
One simple formula :
Context drives Behavior drives Performance

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Drives Drives

Context Behavior Performance


is SHAPEABLE is OBSERVABLE is MEASURABLE

This completely changes the way we design solutions!


Source: Y. Morieux (2011), “Resistance to Change or Error in Change Strategy?” In: From Taylor to Today: The Multimedia Encyclopedia of Organization Theory, Erhard Friedberg
Source: BCG 74
(coord.), Research & Organization
​Affects 160m children
globally
​Impacts physical and
​Impacts physical and cognitive development
Stunting or cognitive development

'invisible hunger' ​Average of 22% loss of


income in adulthood; 7%
“Impaired growth and of GDP
development that children

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
experience from poor nutrition,
repeated infection, and
inadequate psychosocial
stimulation”
World Health Organisation

Both girls in the picture are 5 years old.


Rova, left, is stunted
Jiana, right, is not 75
Complex problem, complicated and ineffective solutions

National Level: Multiple stakeholders Child: Lack of comprehensive package

Government International
Breastfeeding Exclusive
Agencies promotion breastfeeding
Donors Interagency
Coordinators Complementary
feeding promotion
Local homestead
food production Household water
treatment
MNP/ Sprinkles
NGOs Handwashing with

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Iodization of salt soap
Private Iron/folic acid Insecticide treated
suppl/ fortification
Co. bed nets (ITN)
Vitamin A
supplementation Intermittent prev.
treatm. in pregnancy
Nutrition education
for dietary diversity Deworming

Supplementary Latrine provisioning


feeding for MAM and usage promotion

Therapeutic
feeding for SAM Zinc for diarrhea

Covered children 0% 50% 100%


76
In Tanzania complex nutrition landscape struggling to reach people in
communities
President 's Office Prime Minister's Office

Regional Ministry of Health and + 8 other


relevant Coordination of Government
Administration and Social Welfare
ministries1 + Business Office
Local Gov't (RALG)
focal points Mr. Obey Assery, Perm.
Secretary (SUN Secretariat)
Food and
Nutritional
Nutrition Unit
Services Unit
High level Steering
Regional government funds, appoints head to Committee

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Region Nutrition i at
re ta r Policy, coordination, advocacy,
Steering Committee ec
S advisory role and resource
Tanzania Food and mobilization (3-4 meetings /year)
District government Nutrition Centre
District Nutrition Capacity building Technical Working Group
168 staff, managing director Co-chairs
Steering Committee Ministries, donors, private sector,
appoint by MoHSW
D. Nutritionists • coordination, research, academia, UN, CSOs
advice, and implementation
Local government
CHWs Development Partners
authorities
Working Group
Key:
Extra-governmental

Governmental

77
Mother in a Tanzanian village has competing priorities

​Goals
• Feed her children so don't have to go to bed on an empty stomach
Stay healthy/alive to be able to take care of the children
• Make sure her children don't get a dangerous disease and die
• Send her children to school
• For her children to be able to take care of me when she is old

Resources/influencers
• Her land
• The health dispensary and care/medication they provide
• The religious leader
• Community education groups

Constraints
• Does not understand stunting
Sophia
• 31 years old • Health facility worker does not measure stunting
• Stay at home mom • Low education
• Mother of 4 children • Low household income
• HIV positive, receiving treatment • No help from husband
• Health facility is a 45-mins walk away

78
Smart Simplicity solutions designed for Tanzania

Catalyst Team Data Collaboration Model


Dedicated govt officials Anthropometric Equip. Nutrition data system Nationwide Rollout

Actual Budget
Fiscal Year Activity Integrated in MTEF Planned Budget (TZS) Implementing Partner Implementation Funding Source NMNAP Outco me NMNAP Output Remarks
Spending (TZS)
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner
insert name of
2016-2017 insert acti vity ti tle select please TZS 0 selec t please TZS 0 select please select please select please insert remarks if any
implementing partner

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Goal: Accelerate Goal: District level stunting data Goal: Accelerate Goal: Create culture of sharing
implementation of the on a regular basis availability of single set and joint accountability
Nutrition Action Plan of stunting data and key Collaboration training
indicators • Nutrition knowledge
• Scorecard
Catalyst Team Rollout of tools and training to • Steering Committee
core roles measure stunting data Three data systems to • NMNAP
• Facilitate be strengthened • Roles
collaboration • Nutrition Cockpit
• Manage data systems • Stakeholder mapping
• Communication • Nutrition scorecard

79
Collaboration model key to success

Change from today Operating Model Role

PMO

ü Better transparency
PORALG Catalyst
Team
TFNC This is where enabling
and monitoring happens

ü Better enablement Sectoral


Ministries
DPs

Districts

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
DED This is where planning &
ü Smart and simple
collaboration CDO
IPs
DNuOs joint accountability lies

Donors NGOs…

Healthcare

ü Facilities This is where change


On the ground impact
needs to happen
Villages
80
Smart Simplicity in action with government officials, focussing on data
collection and collaboration at district level

​Text ​Text

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
"Catalyst Team" of government officials appointed to accelerate Introduction to Smart Simplicity, Collaboration training
roll-out of nutrition plans
81
We are reaching communities

Religious Leaders Radio broadcasts

“I will introduce information about nutrition to new Session completed on local Pangani radio, with
married couples in my congregation” another planned for follow up visit
Christian faith leader
Tanga city radio heard about it and asked for a
session Tanga DNuO being provided with
“I will explain to my congregation that
lactating women are exempt from fasting” materials so they can deliver
Muslim faith leader

“I will explain to my congregation that “We covered the key nutrition information for
breastmilk contains all the water a child needs" pregnant women, up to birth, next time we’ll do
Muslim faith leader breastfeeding"
Debora Charwe, Catalyst Team
82
What will success look like?

​Anthropometric tools used everywhere

​Transparency of stunting at village level


Data

​Quality data enabling appropriate


interventions
Targeted, high
​Real time understanding of who (DP and quality
government) is doing what, where interventions on

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
the ground

​Stakeholders collaborating for common Village level National targets


outcome understanding of
Collaboration

achieved—stunting
stunting and how from 34% to 28% in
​Continuous feedback loops between to address it 2021
national, regional, district and village

​Regular communication of progress and


successes

In partnership with public and third sector, BCG is proud to be applying cutting-edge
management approach to help vulnerable communities and foster future GDP growth
83
Environment: Blockchain for
traceability in food supply chains

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
and tapping the business benefits
of Sustainable Water Investments
84
Biodiversity declined 67% 70% of this degradation is driven by
between 1970-2018 only 15 high-impact commodity
supply chains
The problem: current systems do not sufficiently
incentivize sustainable production and consumption

That results in
a lack of carrots and a lack of sticks
Traceability & Transparency in Supply Chains requires:

Capture Store Verify Expose


data tracing the product as it data in a sustainability/ethics claims information in a
moves along the supply chain transparent and trustworthy way about products way that will change purchasing
via independent checks behaviour
Technology has reached an inflexion point in all 4 areas

Capture Store Verify Expose


Falling cost of IoT allows us to Blockchain as an inherently Data science and machine Proliferation of new channels to
create digital identities for trustworthy, immutable platform learning allow for new ways to tell the story of a product
individual products and technology makes advancements that verify claims and crowdsourcing digitally and an increasing
affordably trace them along the increasingly solve for scalability, models enable collaboration on a consumer demand to hear that
supply chain speed, governance, energy intensity global scale story
PRIVACY IDENTITY
CONTROLS MGMT

VERIFICATION
INTEGRATION/
APIs

PROTOCOL

?
Cape Town
91

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92

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Private sector must largely address the …of which $1 Tn in Water
$2.5 Tn projected annual investment alone
gap for achieving the SDGs…

>$1T

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
needed annually for
water infrastructure
until 20301

1. Includes wastewater treatment facilities, water supply systems. Broader funding requirement
expected to be larger
Source: OECD, GWI, Hudson Institute 93
91 Private Sector Debt

The social sector 76 Global Equity Market

needs to harness
private sector

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
42 Global Public Debt
finance to tackle
the investment gap 6.60 Sovereign Wealth Funds

4.20 Private Capital

<1 US Foundation Philanthropy

<0.2 Global ODA

94
Why are we not seeing enough investment in water?

​Water governance Water systems ​Sponsors lack


​is often politicized cross borders ​experience

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Lack of No long term Sub-scale
seed funding funding projects

Source: Expert interviews, BCG experience 95


But a supporting ecosystem is emerging to attract
private sector funding

Public sector and NGOs eager to partner,


providing expertise and tools

Development banks and foundations offering

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
blended finance solutions

Financiers and regulators developing


sustainable funding solutions

Investors increasingly rewarding


sustainable assets

96
WWF's playing its part

Enabling Team

Seed fund
Dragons’ Den

97
Project Portal

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
We found 43 sustainable and likely bankable projects
​5 project types

Agricultural efficiency

Ecosystem restoration (Haringvliet)


Sustainable hydro/solar
Boat technology innovation
Wastewater treatment

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Green floodplain restoration
Textile industry improvement
Compensation areas
Agricultural efficiency
Hydro to solar
Hydro to solar
Ecotourism Industry improvement (various sectors) Industrial efficiency
Fishery improvement Turbines in irrigation dams
Crops on degraded areas (e.g., hazelnuts)
Agricultural efficiency Leather tannery
Infra green label Hydro ​Sustainable (small) improvement
to solar hydro or alternatives Wastewater
treatment Agri improvement (four projects)
Water supply and
Agri improvement
(various sectors) Leather and textile leakage prevention
Hotel industry efficiency
Alien species clearing ind. Improvement
Agricultural efficiency
Water supply ​Agricultural efficiency
Wastewater treatment ​Wastewater treatment
Agri improvement Hydro
​Sustainable (small) hydro or alternatives
(various sectors) Ecotourism
Responsible mining
Wastewater treatment
Water supply Agricultural efficiency Ecosystem restoration
Wastewater treatment
Textile dyer improvement

98
Textile dying example in Turkey Approach can serve
shows potential of this approach as a blueprint

Simple actions… … lead to substantial impact


Case per dyer

~€100k
~€50-200k annual savings
investment
Copy in other

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
geographies
Reduced environmental impact
Limited • 5-10% less water
changes to
• 10-20% less chemicals
operations
• 7,000 MWh less energy

Roll out supported by initial pilot, feasibility studies, Copy in other


protocols with financiers, stakeholder buy-in, etc. industries
99
A call to action

"SEIZING THE WATER


OPPORTUNITY"

Corporates—Lead the Financiers—Collaborate


charge with other funders

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
by

Governments and regulators NGOs—Work hand-in-hand


—Create the right conditions with the private sector

100
Innovation with Purpose
101

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INNOVATION WITH PURPOSE

102
103
A solution that eliminates 100% of viruses & bacteria

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Solution already proven in the real world

2015 2019
Chilean Village Nairobi Village

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
2018
Airbus aircraft

104
A different way of doing business with Airbus

1 PWSS
+ 4 PWSS
In an aircraft underserved rural
schools

We also got significant traction with other companies and industries 105
Solution gathered lot of interest around the world

It could easily Revolutionary Corporations


be a billion- Chilean water need disruptive
dollar-per-year purifier, hope innovation to
business for thousands find sustainable

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
solutions

106
Solution gathered lot of interest around the world

Initially hard to The technology is We think it is a


believe it was a game changer: tremendous
true, but it is the fact that product that could
almost ionizes an entire save millions of
a magic tech water stream lives and
is revolutionary dramatically

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
change our world

Garth Ehrlich
Mark Cousin Vicki Escarra
Professor of microbiology
Current CEO Airbus A3 Former CEO Feeding America
Drexel University College
Former CMO of Delta Airlines
of Medicine
107
We have counted with the support of +50 BCGers

108

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Valuable learnings for BCG

Copyright © 2018 by The Boston Consulting Group, Inc. All rights reserved.
Purpose driven
Purpose can be BCG network is an BCG should be
projects are a key
integrated into the enormous asset that open to explore
contribution for
business in a profitable we do not always new collaboration
talent attraction &
way even at BCG leverage enough models with clients
retention

109
Thank you!

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