Triple Bottom Line Investing

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Triple Bottom Line Investing

• Fernando Alvarado, ECo Capital

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ECo Overview

• ECo delivers services to and invests in
  developing country small and medium energy
  enterprises that deliver modern energy to
  households, businesses and communities, creating
  
• -economic opportunity
• -quality of life improvements and
  
• -positive environmental impacts
• The Triple Bottom line

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Triple Bottom Line Impact
Social
Financial
Environmental
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Triple Bottom Line Impact
Rationale
Mission
Money
Marketing
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ECo ME Practices
Challenges

• Baseline
• Monitoring
• Evaluation
• Dissemination

Definition of indicators
Resources/client support
Tools/Staff/Time/
Staff/Time/
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Social
Enterprises
Clean Energy Generated
Jobs Income
Quality of Life Improvements
Households with Energy Access
Women Ownership
EDS Capacity Building
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Environmental
Clean Energy MW EE MW Saved
Dollar Value Of Environmental Impact
Clean Water
Sustainable Resources
Reforestaion/ Fuelwood displaced
Barrels of Oil/Kerosene Displaced
CO2 Offset
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Financial
Money ECo Invested
3rd Party Investments
ECo Portfolio Returns
Funds Directed To Clean Energy
Growth Capital
Money Entrepreneurs Invested
FI Training Engagement
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Portfolio Returns
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Monitoring

• Established Baseline Reports
• 2x Annual Progress Reports
• Entrepreneur Buy-In via loan agreements
• ME Coordinator
• ME Dedicated Staff
• Interns Recruited
• Improved Tools
• End Result

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Evaluation

• Develop Standardized Evaluation Process and
  report
• Organize 2-3 Evaluation Trips
• If possible, recruit interns to assist with
  customer surveys

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Tools

• Revised Baseline Reports
• Revised, Customized Progress Reports
• Evaluation Reports
• Evaluations on 2-3 Enterprises
• ME Manual
• Staff

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Success Lessons Learned

• Improved portfolio quality
• Early problem identification
• Committed entrepreneurs
• Longer term relationships
• Fundraising

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Recommendations

• Dedicated staff necessary
• Resource allocation to do ME
• Contractual obligation (stick)
• Incentives for complying (carrot)
• Tools (web based, manual, etc)
• Taking ME to the next level, selling ESMS within
  investee companies