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TBL IMPACT INVESTMENT INITIATIVE
Aiming for Triple Bottom Line Performance
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FOUR INTER-RELATED ACTIVITIES
To Maximize Social Progress, Minimize Environmental Damage and Earn Positive Economic Returns
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1.
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Building a Portfolio of TBL Initiatives
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2.
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Enabling a Triple Bottom Line (TBL) Impact Investment Fund
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3.
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Ongoing Development of TrueValueMetrics (TVM)
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Building a Community Supportive of these TBL Initiatives
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OVERVIEW - ORGANIZING FOR SUCCESS
Inter-Related Activities to Enable Progress for Everyone
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Size Matters
- Everything needs to be the right size for what needs to get done. For a very long time now, companies have grown because most of the time there are economies of scale and that means the bigger means higher productivity and bigger profits.
- For a family, the right size may not be more and more children, but maybe a quite small number ... say 1, or 2 or 3.
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THE SEGMENTS OF THE FUND PORTFOLIO
Building a Portfolio of TBL Initiatives
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Companies that are economic drivers for their communities
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People Centric Not-for-Profit organizations to improve the social situation
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Not-for-Profit organizations that are improving the environmental situation
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Companies that are economic drivers for their communities
- Communities need an economic driver in order to prosper ... an organization that provides economic value add.
- Using conventional financial analysis, value add is about production, employment (wages), taxes and profits. TVM also brings in the value add associated with social capital improvement and natural capital improvement.
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People Centric Not-for-Profit organizations to improve the social situation
- Many modern communities do not have an economic driver. Worse, they do not have the human capital ready to implement an effective economic driver without remedial assistance.
- People centric social services are a foundational investment requirement. Having funds available for this work is an essential part of a sustainable socio-envir-economic system
- The TVM metric for social progress is used to show that money is well spent.
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Not-for-Profit organizations that are improving the environmental situation
- Many old urban centers are unsuited to modern times both as regards layout, services and buildings. They are in need of substantial upgrades to suit modern conditions.
- The TVM metric for progress is used to show that money is well spent and programs are effective.
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A TVM IMPACT INVESTMENT FUND
Enabling the Triple Bottom Line (TBL) Impact Investment Fund
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The legal dimension for the fund
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The funding for the fund
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The Fund Portfolio will Use TVM for Impact Accountability
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The Legal Dimension for the Fund
- The fund needs to be structured not only to be in compliance with applicable laws but also to be able to operated in a way that optimizes the delivery of blended value ... that is social progress, environmental progress and economic progress.
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The Funding for the Fund
- The fund addresses the conundrum where people and organizations with money to invest do not have appropriate projects to invest in, and projects needing funding do not have access to money and other support.
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The Fund Portfolio will Use TVM for Impact Accountability
- Potential investments will be screened using TVM style analysis.
- All of the portfolio investments will use TVM enhanced accountability so that there are metrics related to social impact and environmental impact as well as economic impact.
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TRUE VALUE METRICS (TVM)
Ongoing Development of TrueValueMetrics (TVM)
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What is TVM?
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Ongoing Intellectual Development of TVM.
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Quantification and TVM Units of Measure.
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The TVM Standard Value Profile (SVP) and SVP Database
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5.
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Consulting Services for Users of TVM
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5.
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Applying IT and AI to the TVM framework
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What is TVM?
- TVM is at its core an enhancement of conventional financial accountancy (CFA) that embraces most of the concepts that are used in accountancy like balance sheet accounts and profit and loss account accounts.
- The key difference between TVM and CFA is that TVM incorporates social and environmental externalities while CFA does not. TVM also includes an accounting for the changes in social capital and environmental capital while CFA does not.
- TVM is a system of numbering. It is said that you manage what you measure. TVM is about the metrics that really matter. TVM is not a system that uses monetization and market sentiment as a proxy for measurement.
- TVM has a reporting dimension and a management dimension. Reporting simply report progress and performance while the management dimension is all about 'moving the needle' towards a better society, a better environment and a sustainable economy. TVM reporting has key metrics for social, environmental and economic impact ... that is progress and performance of all these three dimensions
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Ongoing Intellectual Development of TVM
- Lessons learned over many years in corporate management as well as experience in international development and humanitarian assistance have informed the development of TVM.
- Work needs to be done to incorporate the latest technological best practice into TVM so that it works easily, at low cost, everywhere and about everything.
- Work also needs to be done to create the workbooks and other training materials so that everyone who needs to know about TVM has access to the recessary material.
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Quantification and TVM Units of Measure
- TVM avoids using monetization as a way to number social and environmental impact and value.
- TVM measures relative progress as a primary indicator that the needle is moving and goals might be achieved
- The absolute state of society and the environment is less important in the application of TVM because it has a low utility for management (moving the needle) and operational decision making
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The TVM Standard Value Profile (SVP) and SVP Database
- More than 50 years ago, Ralph Nader initiated a revolution in product labeling. It is time to modernize this so that consumers have better information to make their decisions about what to buy
- A Standard Value Profile summarizes the history of the product in terms of social impact, environmental impact and economic impact, together with the anticipated impacts there will be in the future through the use of the product and into the post use waste chain
- In order to use SVP information, a universally accessible database of SVP information is required. There are two elements to this (1) the hosting of the database which is now possible using cloud technology; abd (2) the populating of the database with SVP data.
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A Consulting Service for Users of TVM
- Orienting the accountancy profession to the use of TVM
- Helping sustainability officers in corporations to make sustainability reporting more effective
- Briefing C-Suite and BoDs on the use and value of TVM
- Briefing impact investors on the use and value of TVM
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Applying IT and AI to the TVM framework
- A huge amount of intellectual effort is being applied to use AI to improve economic productivity and some aspects of the economy and urban life, but massive areas of the socio-enviro-economic system have little useful data. This has to change.
- Some intellectually strong work has been done and is being done in academia. Rather little of this work has been deployed to help make the world a better place at scale.
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THE TVM ALLIANCE COMMUNITY
Building a Community Supportive of these TBL Initiatives
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Management Team
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Individuals
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Social Service and Activist Organizations
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Corporate Organizations
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Philanthropic Organizations
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A Management Team
- The TVM Alliance team is both broad and deep with both management and technical experience.
- Many of the team members have had corporate line management experience at senior levels, and others have worked in a variety of unusual socio-economic situations both internationally and in the USA. Others have consulting experience.
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Individuals
- The TVM Aliance gives individuals an opportunity to engage in activities that aim to improve society, the environment and build a sustainable economy to the extent that they are able.
- Many job opportunities do not have these characteristics yet people are often motivated to be engaged in something that is more than just the pay-check ... though that is essential.
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Social Service and Activist Organizations
- Many social service and activist organizations do amazing work with very little financial resources. Making it easier for these organizations to access financial resources is needed.
- At the same time, there is a need for organizations of this type to embrace a much more rigorous form of accountability so that resources are not wasted.
- One of the strengths that TVM enables is a much longer view of progress and performance than is normal in the traditional project cycle and short duration funding.
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Corporate Organizations
- All corporate organizations should be held accountable much more rigorously and broadly than in the past. This means that TVM style management metrics should be used within the corporate organization to manage their affairs
- In addition the general public should have a platform to report on the performance of corporate organizations as seen by the general public. Technology to do this is becoming available and this should be deployed.
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Philanthropic Organizations
- More and more corporate organizations are engaged with corporate social responsibility (CSR), sustainability and social, environmental and governance (ESG) initiatives.
- Many of these organizations should collaborate with this initiative in order to get more impact from their philanthropy.
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