Humanitarian Investing Initiative Update

2020 Annual Meeting, Davos-Klosters Meeting of the High-Level Group on Humanitarian Investing Initiative Update The Humanitarian Investing (HumIn) Initiative

Definition Investments that measurably benefit HumIn High-Level Group Members people and communities in displacement and fragility, conflict and violence (FCV), while creating financial returns

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1 HumIn Initiative is led by an influential, cross-sector High-Level Group

Co-chairs

Børge Brende Peter Maurer Marisa Drew Axel van Trotsenburg Ion Yadigaroglu Johan Andresen Bandar Hajjar President President CEO, Impact Advisory Managing Director of Minister for Foreign Trade & Managing Partner Chairman President World Economic Forum ICRC Credit Suisse Operations Development Cooperation Capricorn Ferd Islamic Development Bank World Bank Netherlands (IsDB)

Katherine Garrett-Cox Lars Rebien Sorensen David Beasley Mark Green Mark Lowcock Monique Pariat Patrick Odier Shinichi Kitaoka Chief Executive Officer Chairman of the Board Executive Director Administrator USG for Hum. Affairs Director-General Senior Managing Partner President Gulf International Bank Novo Nordisk Foundation World Food Programme USAID OCHA ECHO Lombard Odier Japan International Cooperation Agency (JICA)

Alok Sharma Per Heggenes Ronald Cohen Sara Pantuliano Tara Nathan Paul Van Zyl Karin Finkelston Secretary of State for Chief Executive Officer Chairman Acting Executive Director High Commissioner EVP, Public-Private Chief Creative Officer VP, Partnerships UNHCR International Development IKEA Foundation Global Steering Group for ODI Partnerships The Conduit IFC 2 United Kingdom Impact Investment MasterCard Initiative Update Growing needs in fragile contexts can benefit from increased capital seeking returns with impact, but cross-sectoral collaboration is critical

Heightened climate-related disasters, increased geopolitical strife, and protracted crises exacerbate difficulties facing the 2B people living in fragile contexts Traditional humanitarian response always needed, but aid resources are insufficient New partnerships needed to catalyze new capital, with demand growing across sectors

Why Now The Gaps The Opportunity Scale, duration, and complexity of Traditional response necessary in By bringing together mission- crises have increased, creating acute crises, but new partners critical stakeholders at the urgency for more sustainable and resources required to build highest level, we accelerate humanitarian and development resilience, overcome fragility, and and shape long-term solutions responses. More capital is seeking build back better for humanitarian and fragile returns with impact settings

3 2020 Annual Meeting HLG Gathering Concrete contributions your organization can make to build the Humanitarian Investing market in 2020

Put projects on the table, share info on current or potential investable opportunities in the HumIn space

Lead a new or expanded industry or regional track to workshop, prioritize, develop, and finance HumIn opportunities

Participate in specific HumIn deals as appropriate for your organization, e.g., fund project development, invest in, provide concessionary capital, de-risk, etc.

Co-host the HumIn Opportunity Platform through funding development or contributing resources to engage, expand, and maintain the platform

Support organizational readiness in the space by contributing to good practices research effort and committing to implementing good practices

4 Humanitarian Investing is a form of impact investing that aims to benefit people in fragility and displacement while generating financial returns

Spectrum of capital Long-term goal Initial focus of Humanitarian Investing Initiative

Investment Traditional Responsible Sustainable Impact-driven Donor capital approach

Accepting Tolerate Tolerate below- Partial capital Financial goals Deliver competitive risk-adjusted financial returns full loss (e.g., higher risk market returns preservation grant)

Don't Impact goals Avoid harm Benefit Contribute to solutions consider

5 Initiative Update The HumIn Initiative is organized around industry, region, enabler tracks to help build the HumIn market 3 types of tracks Current tracks

Industry – Engage stakeholders to identify and develop solutions and economic models for scale Water Agriculture & food security Region – Leverage region-specific efforts and resources HumIn to address fragility and displacement theme Enabler – Target greater collaboration and more capable stakeholders in the space across sectors Infrastructure Organizational Industry readiness High Enabler Level Group Future tracks Energy Region Opportunity Further tracks to be developed in 2020; e.g., education, platform health, insurance, etc. Financial services Latin America 6 Initiative Update Tracks identified projects and engaged stakeholders through 2019, with 2020 focus on developing projects, testing models, and scaling

Click on a track Anchor Identify, prioritize Develop projects Scale and Engage stakeholders for more details partners projects and models And test models replicate

UNHCR Energy GPA

ICRC Water & infra Constellation

Industry Kiva Financial services

WFP Agriculture & food

GSG Latin America Region

IFC Platform

GIB HumIn theme Enabler Org readiness ECHO 7 Track Update HumIn Water & infrastructure track 2030 Vision: Develop scalable infrastructure investment models to build resilience amid fragility

Needs & Opportunities Davos 2020 Focus Recent Activities • 2.1B people lack safe drinking water and 4.5B • Build support for developing • Declarations of interest, soft do not have adequate sanitation Goma functional core water pledges and seed money secured • Projected water infrastructure financing needs infrastructure, helping 337,000 for Goma of $6.7T by 2030 and $22.6T by 2050 people with potential to • Announced One WASH Sukuk to • Potential to scale to other contexts, pool replicate broadly raise $150M for investment in projects to reduce risk and transaction costs water & sanitation • Large infrastructure rebuilding needs in • $20M of concessional capital disaster-prone areas originated for $120M investment in Elbow Cay reconstruction

Track participation

8 Track Update HumIn Latin America track 2030 Vision: Leverage $1B+ in additional investment and donor capital to benefit millions of people in fragility in Latin America

Needs & Opportunities Davos 2020 Focus Recent Activities • Latin America is home to both strong • Identify ways to leverage • Announcement of LADOF middle income countries and some of the private capital to benefit • Launch of IDB Migration most fragile contexts with largest refugee Venezuelan refugees and host Fund situations in the world communities • HumIn LatAm track • Given strong LatAm businesses and • For example through building session at GSG Summit in economic systems, there is great potential support and engagement for Buenos Aires for investability with impact on those in the Latin American Displaced LatAm in fragility Outcomes Fund (LADOF)

Track participation

9 Track Update HumIn Opportunity platform track 2030 Vision: Catalyze investments in fragility by connecting stakeholders and projects

Needs & Opportunities Davos 2020 Focus Recent Activities • Bring together publicly accessible data into • Launch initial version of the • Engaged provider to build one, clear space opportunity platform to gain the platform • Facilitate interactions among disparate exposure and support for • Collaborated with stakeholders to catalyze investment the ecosystem Community of Practice to populate the platform with projects

Track participation

10 Track Update HumIn Organizational readiness track 2030 Vision: Strengthen HumIn ecosystem to catalyze investments & impact at scale

Needs & Opportunities Davos 2020 Focus Recent Activities • Influence future development through good • Build support and buy-in for • ODI study on risk financing practice and recommended specific actions HumIn organizational underway • Engage humanitarian and development actors, readiness effort • Joint Forum/ICRC/ODI investors, and donor governments to map research proposal in levels of readiness across e.g. budgeting, discussions with Switzerland procurement, staffing, culture, risk appetite & and ECHO etc.

Track participation

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