05 June 2018 | Cases | Finance

Abstract In early 2016, the largest state-owned Oil Company in the world, Saudi Arabia-based Saudi Aramco (Aramco), declared a proposal to float an IPO. The crown prince of Saudi Arabia, Prince Salman, had stunned the world when he declared in early 2016 that Aramco’s worth would be around $2 trillion. Aramco was not only an oil company but a budget to run the nation as 85% of Saudi Arabia’s budget came from the tax which Aramco had to pay. The intent to monetize the state jewel came at a time when the economy of the Kingdom was under pressure. A widening fiscal deficit and depleting foreign reserves indicated that it was no longer viable to depend on oil... »

Regulations for a Sustainable Finance Sector

05 June 2018 | Cases | Finance

Abstract This case describes the deliberations of a financial regulation policymaker at the Dutch Central Bank, Johanna Baks. She is asked by the central bank’s Board to recommend regulations that are conducive to the Netherlands curbing climate change, since the Board officially recognizes this as a threat to long-term financial stability. The financial sector claims that a lower capital requirement for catastrophe bonds and climate bonds is the solution. Johanna researches this option, as well as several other ones. These other potential financial regulations are: mandatory inclusion of environmental, social, and governance (ESG) factors in supervised financial institutions’ internal models, mandatory public disclosure of ESG factors of the organizations’ investments, a financial transaction tax, prohibiting universal banking and/or... »

Babban Gona’s Agri-Franchising Model: Scaling up Challenges

05 June 2018 | Cases | Agriculture

Abstract Africa’s most populous country, Nigeria, is home to millions of smallholder farmers who, due to low economies of scale, have some of the lowest yields in the world, making subsistence farming unsustainable for them. This has led to large-scale unemployment, especially among the youth. Poverty, unemployment, and a rapidly growing population have made Nigeria a breeding ground for extremist organizations like the Boko Haram. Kola Masha through his for-profit social enterprise, Babban Gona, is taking this challenge head-on by creating an innovative agricultural franchise model which provides professional management and investment for grass-root level farmer groups. Babban Gona’s holistic end-to-end service delivery model has resulted in farmers reducing their input costs, increasing their yields, realizing a higher... »

Sustainability International’s Alliance with ConsenSys – Leveraging Technology for Social Impact

Abstract Social entrepreneur Chinyere Nnadi (Nnadi), Co-founder & CEO of Sustainability International (SI), had started his non-profit organisation to provide innovative solutions using technology to alleviate poverty in Africa. Since childhood Nnadi had beheld adversity in Nigeria that had been grappling with oil pollution due to decades of oil drilling and spills in the Niger Delta.  Nnadi observed that the environmental damages in Nigeria had resulted in the loss of livelihoods of farmers and fishermen, causing appalling public health hazards and mass unemployment. To end this misfortune, Nnadi’s SI team launched various projects ranging from infrastructure developments to providing education to girls and creating healthcare awareness. SI had also partnered with various government agencies, companies and NGOs and... »

Preserve: Growing a Sustainable Consumer Goods Company

Abstract This case presents the startup and growth of Preserve, a sustainability-driven business and B Corp, in the circular economy. The company has grown over the years as a housewares and personal care consumer goods company in the retail industry with a closed loop business model on #5 plastics. With this operational model, Preserve managed to create social and commercial value by attaining strategic growth while meeting its social mission. To serve dual-purpose (social and commercial), Preserve helped its partners achieve sustainability goals, but these investments did not necessarily add to the financial bottom line and short-term growth of the company. The case focuses on the meaning of “growth” as the strategic intent for a sustainability-driven business. It... »