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SECOND AND THIRD BOTTOM LINE IMPACTS:. Measuring Results. Deborah J. La Franchi CEO – Strategic Development Solutions. June 10, 2008. www.sdsgroup.com. Double and Triple Bottom Line Funds. 1 st Bottom Line: Risk-adjusted market-rate returns
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SECOND AND THIRD BOTTOM LINE IMPACTS: Measuring Results Deborah J. La FranchiCEO – Strategic Development Solutions June 10, 2008 www.sdsgroup.com
Double and Triple Bottom Line Funds • 1st Bottom Line: Risk-adjusted market-rate returns • 2nd Bottom Line: Positive social and community benefits (low-income community) • 3rd Bottom Line: Positive environmental impacts www.sdsgroup.com
Funds Created by SDS and Economic Innovation www.sdsgroup.com
Impact Reporting No Standard Challenges – data collection Upfront Design – collect upfront Reporting that Works for Investors Reporting that is Feasible for Developers / Fund Managers www.sdsgroup.com
Second and Third Bottom LineImpact Report Goal: Standardized reporting tool; ease of use (investors); capture relevant data Process: Compared 6 different reports; reviewed Gary Pivo’s Delphi Method paper; talking with investors Input: Pension funds, banks, insurance companies, foundation endowments, RPI (David Wood/Gary Pivo), ICIC Current Status: Template under development; sample constructed Completion: End of Summer Next Steps: Finalize and share with industry 5 www.sdsgroup.com
Sections • Project Description • Investment Overview • Project and Area Profile • Second Bottom Line: Social and Economic Impacts • Third Bottom Line: Environmental Impacts www.sdsgroup.com
Project Description TBL World Headquarters The TBL World Headquarters Project will rehabilitate the historic four-story Hudson Building, as well as construct a new building extension and parking lot on an adjacent site. This $38 million project includes $7.5 million in National New Markets Fund tax credits to develop over 80,000 sq. ft. of space to house the administrative office of the global headquarters for TBL World, to support its humanitarian work addressing global poverty, hunger, and conflict resolution in over 35 developing countries world-wide. The project will also house TBL World’s new interactive public Action Center, community conference facilities, and TBL World Northwest’s Small Business Development Center. The facility will also serve as the new headquarters of the Lemming Foundation. The Action Center will serve as a regional educational center and resource for area schools and serve as a tourist attraction for outside visitors, and the business development center will assist low-income entrepreneurs who want to create or expand small businesses. The project also creates significant environmental impacts through its LEED Gold Certified design, though it is striving to achieve a platinum designation upon completion. www.sdsgroup.com
Investment Overview www.sdsgroup.com
Project and Area Profile www.sdsgroup.com
Second Bottom Line: Social and Economic Impacts www.sdsgroup.com
Second Bottom Line: Social and Economic Impacts, Continued www.sdsgroup.com
Second Bottom Line: Social and Economic Impacts, Continued www.sdsgroup.com
Third Bottom Line: Environmental Impacts www.sdsgroup.com
Third Bottom Line: Environmental Impacts, Continued www.sdsgroup.com
DBL Handbook Funded by the Ford Foundation Provides a comprehensive overview of the field of Double Bottom Line investment private-equity funds. The Handbook is available at: www.sdsgroup.com 17 www.sdsgroup.com