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| FRIDAY, JANUARY 24, 2014

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Investing in health
Rapid progress in meeting global health challenges can be achieved only by innovation and collaboration
KEYNOTE | Craig Williams, director, vaccines and disease of the developing world, GlaxoSmithKline

Why not go both fast and far?

here is an old African saying that deand scaled appropriately. GSK is currently clares: If you want to go fast, go alone. supporting the initiative, spearheaded by If you want to go far, go together. the Center for Health Market Innovations Its been over 10 years since I first heard (funded by the Gates Foundation, DFID and this saying, and I still find myself drawn to its inothers), to create an authoritative repository herent message of collaboration for its apfor the results of development programs. plicability to the underlying challenge facing This open-source-style concept has the pobusiness, government and nongovernmental tential to generate greater insights, as it will organizations in addressing the stated devellead to better data analysis and better paopment and health goals of nations. However, tient coverage. It requires a strong sense of this saying seems to reinforce a false dichoopenness and cooperation among different tomy implying that we cant go fast together. I parties to become an effective and powerful refuse to believe that. Together, we can retool for calibrating longer-term investments move barriers, align and move with commandand shorter-term aid efforts. Having data is ing speed toward a collective ambition. only one part of the picture and it likely I passionately believe that without more wont be perfect initially. Moreover, the inforinnovative and disruptive colmation we do have must be laboration involving crossto inform our courage to Taken together, used sector partnerships we will act and invest, and not lead us miss opportunities to radically into a state of inaction via the combined improve health care infraparalysis. impact of these analysis structure and save lives. PartFourth: Political will and initiatives could cooperation. If we are to nerships can combine the skills and reach of charities, achieve the current MDGs, esprovide a the efforts of governments, by 2015 as well as paradigm shift in pecially and the knowledge and capaset and meet future goals bilities of business to help imhow we identify, the strength of political resolve prove infrastructure and cre- scale and combat is critical. In the most severely ate prosperity to lift people affected as well as the most out of poverty for good. This is diseases in some affluent nations, both sets of also beneficial for business in leaders have different roles to of the poorest the long term, creating a virtuplay and different challenges communities ous and sustainable cycle of to overcome. These cluster growth and investment. around ensuring delivery, politSo new thinking and new partnerships ical integrity and a positive consensus for are key to ensure we do not miss the opporpublic health and development goals. The tunities to make step-changes to eradicate shortage of health workers is one of the disease, improve health care and raise living most fundamental barriers to improving standards in the coming decade. There is a health in developing countries. A fully trained range of opportunities for wider and deeper and well-supported community health workcollaboration and coordination, five of which er can deliver treatments and provide health could prove critical to our success. education to 5,000 children a year. In 34 of First: Collaboration that anticipates the poorest countries in the world, GSK is and acts. While we must remain vigilant in partnering with three leading charities our fight against some of the developing Save the Children, AMREF and Care Internaworlds most deadly diseases, such as maltional to train 10,000 community health aria, HIV and tuberculosis, the shift in the workers over the next three years. Commitdisease burden of developing countries toment from leaders to invest in health-care ward noncommunicable diseases such infrastructure remains the key to unlocking as diabetes, hypertension and obesity quality and long-term impact. provides an opportunity for us to anticipate Fifth: Financial will and innovation. and act. The key is to act before the disMore can be done to leverage the private eases have had a debilitating effect on the sector in general, and financial institutions in individuals, families and communities that particular, to raise investment funds speserve as the very foundation for economic cifically through using international capital prosperity. We must work together to supmarkets and creating new financial port the need for community awareness, on products. There remains a huge knowledge how we can prevent disease through proper gap with respect to accessing capital that planning and nutrition, and helps to build scale at the how to deliver effective and right speed and size. There efficient treatment via are some pioneering exprimary care outlets, and amples, such as the Interresearch and development national Financial Facility efforts. for Immunization, which has Second: Measuring raised funds backed by and reporting. Alongside donor funding for 20 years. the more strategic, longerOr via organizations that term view of the Millennium harness the power and caDevelopment Goals pabilities of impact invest(MDGs), we need to comment funds (such as the plement the 15-year Gates Foundations Global timeline with shorter-term, Health Investment Fund) tangible targets, or mileand private equity firms stones for which an (e.g., Abraaj) that blend capaligned procedure and meital from a variety sources chanism for reporting will to achieve scale. We must be critical. With alignment work to connect the innovcomes consistency, and Craig Williams, GSK director, ators with investors to help vaccines and disease of the with consistency comes properly scale what is momentum. We feel at GSK developing world. already working. that there is a strong case The world looks very diffor integrating financial, economic, social ferent today than it did in 2000. There needs and environmental data so as to significantto be mutual learning and collaboration bely improve the ability to understand the types tween nations and their development partof advances being made and provide a ners. There are many examples of successsmarter baseline for measuring progress, ful knowledge transfer from poorer to richer making it attractive for nontraditional incountries, and vice versa. Taken together, vestors and funders. In addition, more scruthe combined impact of these initiatives tiny and consistency in how we evaluate suscould provide a paradigm shift in not only tainability, scalability and social value will how we identify, scale and combat dishelp initiative owners design and implement eases, but in the health prospects of some more efficient, sustainable and effective of the poorest communities on the planet. It programs. requires governments, NGOs and busiThird: Data for development. Currently, nesses, as well as health-care professionthe findings and results from development als, to recognize the benefits of greater projects are not routinely made available for transparency and form new partnerships. examination. As a result, there is an opporThis outcome is one thing that can result tunity to start to analyze what works and from the high-level meetings in Davos this what does not so that it can be enhanced year. n
GSK

Clockwise from top left: Health workers in a rural health facility in Mozambique using a propane-powered refrigerator to store vaccines; VillageReach team and premises in Balaka, Malawi; Immunization program in Mozambiques Chire district; Mothers and babies from the Kalembo area of Balaka, Malawi. VIEWPOINT | John Beale and Wendy Prosser, VillageReach

Spotlight on a charity thats teaching companies how to go the extra mile

VILLAGEREACH

illageReach improves health care in This is where we bring in the private sector. Were working to improve health care, but in developing countries by providing critical last mile support for health intrying to solve that problem there are many other challenges, such as these, that are extervention programs. More than 5.2 million people benefit from the organizations apposed. Third, information technology. The proach and activities in counlast mile of distribution is the tries like India, Malawi, Nigefirst mile of data. With health ria and Zambia. Here, John care, there are challenges reBeale, strategic developlated to what the population ment director, and Wendy requires. Information technolProsser, program manager, ogy can help with that. This includes mobile applications talk about the organizations work and goals, and involving and software platforms. companies in the process. VillageReach operates a What does VillageReach dedicated logistics system do? in Mozambique to help delivJB: Our mission is to imer vaccine to health-care prove health care in developclinics. How does the projing countries places John Beale, VillageReachs ect work? strategic development director. where communities are unWP: Were redesigning disderserved in getting health tribution systems for vaccine. care. VillageReach focuses exclusively on In this case, the last mile of distribution is from the district level to the health-care cenrural and more remote communities. There are an awful lot of funding partners and initers. Were making it more cost-effective and tiatives that are vertically oriented. We more efficient. Now, there is a dedicated logislooked at that and said, Lets focus on buildtic system for vaccine. And its now fully maning support for building health-care capacity aged by the provincial government. The idea is in terms of what is actually needed and doto make the program self-sufficient. Improving things horizontally. ing the distribution system and making sure What are VillageReachs key the vaccine is available every month is a big way to help build trust. If a mom walks five strategies? JB: We have three main strategies. First, miles to the health center and theres no vacbuilding up personnel capacity of the frontcine, thats a big trustbuster. line health workers. Second, building underHow else does VillageReach build trust lying infrastructure better transport, betin local communities? ter energy supply, better communications. JB: In many cases, if theres a lack of
VILLAGEREACH

WP: Companies are missing opportunipharmaceuticals, the health-center personnel close the center, go and get whats ties and investments. We need to help their needed and then come back. From a trust innovations get through. viewpoint, we need to keep the health-center What more needs to be done to make workers in the health-care centers instead of this possible? doing ad hoc tasks they dont have time for. JB: We have to get beyond the regional What opportunities does this offer the level and pilot programs and scale up. Wed private sector? also like to see large companies investing to improve the energy system. We own a private WP: This is another market for the private sector, but there are lots of barriers between energy company, VidaGas, which operates at the public and private sectors. So we have to a profit. Originally, it was intended to supply show them both what the benefits are. For propane to health-care centers. But only one thing, if corporations invest in health about 15 percent of its delivery goes to the care and help improve the quality, theyre goMinistry of Health. The rest goes to private ing to have a better, healthier work force. enterprise. Its an example of a commercially JB: And if they improve energy systems viable company that is socially responsible. We also want to see a bigger wireless footor infrastructure, for instance, they get better production, better supply chains and betprint throughout Africa. Communication is viter transportation systems. tal for health-care improvement. How can you persuade companies to How can the different organizations ininvest? volved be more effective? JB: We can show companies whats JB: We would like to see much greater been done. We need to bring transparency from the organithe companies to this and let zations involved. We would like them see how they can apply to see a much stronger sense their own resources. We try to of organizations working tohighlight the degree to which gether. There needs to be more collaboration. What they can improve the state of health care. Were a nonprofit. weve done is to try to make You would think that a foravailable as much of what profit corporation with more weve done and what we have resources could do even more as possible, and put it online. than we can. Theres a lot of efAnd, in the end, were all tryfort to integrate the private ing to work ourselves out of sector we simply need Wendy Prosser, program our jobs. ARIANE SAINS more of it. manager, VillageReach.
VILLAGE REACH

OPEN SOURCING | Center for Health Market Innovations

How big data is transforming the fight against diseases in the developing world

istorically, data collection and analysis in developing countries has been difficult the overall process can be expensive, while the collected data can be hard to standardize, quantify and compare. Yet this is changing, thanks to the open-source approach employed by development initiatives like the Washington, D.C.based Center for Health Market Innovations. Managed by the Results for Development Institute, CHMI makes health care more accessible to the poorest communities by identifying and analyzing health-care programs on the ground and connecting them with corporate investors, donors and local partners. Open sourcing and open data allow philanthropists, companies and decision makers looking to invest in health care, education and other sectors in developing countries to make better-informed decisions. More information ultimately positions you for success, says Donika Dimovska, project manager at CHMI. Both open sourcing and crowdsourcing enable broad collection of data that can help

companies invest and find lopoint for companies that cal partners, and help create want to invest but dont know scalable models that deliver where or how to begin. We real benefits to people in dethink of ourselves as a conveloping countries. nector, Dimovska says, Many companies use helping to establish a linkthe data as a pipeline or to age. She notes that the data find models to invest in, must be useful, regardless of says Dimovska. CHMI is a whether it relates to health go-to place. care, education or infrastrucDimovska notes the imture, and that useful means portance of verifying the coldifferent things depending on lected data. Ensuring quality who is using the data. She adds that those providing is a challenge, she says, CHMI Project Manager Donika data also need to see the adding that CHMI has a thor- Dimovska. concrete benefits of doing so. ough review process to enDimovska sees clear applications for sure data quality and works to ensure that open sourcing far beyond health care. Builddata is always updated. ing on CHMIs success, Results for DevelopCHMI collates the data, standardizes it ment launched the Center for Education Inand then posts it online. All the information novations to increase access to good, is publicly available although Dimovska affordable education for all. notes that while CHMI focuses on health CEI has programs in, among other care in developing countries, it neither colplaces, South Africa, China and Kenya. lects nor publicizes medical records or other These range from providing desks personal information. for schoolchildren to helping establish The CHMI database is also a starting

governments are working with private to remote communities are another exkindergartens and early childhood developcompanies and nonprofits to extend health ample of improving technology, she says, ment centers. We believe the CHMI model care access through innovative business making it easier to put a project into action. is very applicable, Dimovska says. CHMI is partnerships, says Dimovska. CHMI Improved logistics mean that medicines can also looking at replicating its model in agriworks through local partners be delivered more affordably. culture, water and sanitation in countries including India, CHMI is considering launching a mobile as well as climate change and We believe Kenya, Nigeria, Pakistan and application to more easily collect data from the environment. the CHMI the Philippines. These parttablets and smartphones as people beStarted in 2010, CHMI is ners identify and connect come more mobile and move away from funded by the Bill & Melinda model is very health innovators to potential their computers. Gates Foundation, the Rockeapplicable partners such as investors, In five years, CHMI would like its datafeller Foundation and UKaid, academic evaluators and new base to be more self-sustaining in terms of which is under the auspices of business collaborators. contribution and use. This would translate inthe U.K. governments Department for InterNew technologies are key to making to lower funding costs and improved national Development. open sourcing, data collection and the sustainability. In 2013, CHMI saw a number of emergprojects that emerge from them work, she Because open sourcing and the technoling trends in financing health care in develadds. For instance, in parts of Asia and ogies it uses are relatively new, Dimovska oping countries and about 40 models that India, she says, mobile phones are incrednotes that its important to follow up on have expanded and are scaling up to create ibly important, because information can what comes out of partnerships and how real impact. CHMIs analysis indicates that quickly and easily be sent to everyone from models are being developed and enlarged. networks and franchising are among the pregnant women to people with medical It goes without saying that we want to see biggest trends. The latter includes providing conditions that need to be monitored. impact, she says. primary care through franchising, including Better supply chains to deliver medicine ARIANE SAINS mobile primary care. Governments are also coming on board, working in public-private partnerships as Investing in health was produced by the Creative Solutions department and did not involve the they haven't before, she says. Many newspapers reporting or editorial departments. It was sponsored by GlaxoSmithKline.

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FRIDAY, JANUARY 24, 2014 |

Investing in health
Social impact fund backs late-stage global health innovations
INNOVATIVE INVESTING | Christopher Egerton-Warburton and Labeeb M. Abboud, Global Health Investment Fund managers, Lions Head Global Partners

nder the sponsorship of the Bill & Melinda Gates Foundation, in partnership with Grand Challenges Canada, a private fund has been launched to bring a new source of capital for innovation in the area of new devices, diagnostic drugs and vaccines for global health diseases. Advances in medical science have resulted in significant improvements in health in developing countries, including dramatic reductions in child and maternal mortality. Nevertheless, millions of people continue to die from conditions that are treatable. World Health Organization figures show that nearly 15 million people die each year from infectious diseases and nutritional deficiencies. According to the latest estimate, in 2011, 6.8 million children died before reaching their fifth birthday, with a heavy geographical skew toward developing countries, which account for over 70 percent of the total. The

most common causes of child and infant mortality are pneumonia, diarrhea, birth complications and malaria. Diseases such as meningitis and measles, which account for a smaller percentage of deaths globally, still take the lives of hundreds of thousands of children each year. Solving problems of such magnitude requires improved access to existing interventions as well as new and affordable medicines. The objective is not merely to protect the gains that have already been achieved, but also to deliver the far greater gains that could be achieved. The pipeline of new interventions currently under development has the capacity to save millions of lives each year and, in so doing, transform human health globally. Unlike in the past, the conditions for lasting change are now in place. Political focus and improved economic growth during the past decade have led to substantial

investment in health systems in developing countries. New drugs and vaccines that did not exist 10 years ago are already improving the lives of hundreds of millions of individuals. Furthermore, after decades of underinvestment, the generosity of government donors and charitable foundations such as the Bill & Melinda Gates Foundation, along with the engagement of the pharmaceutical and biotechnology industries, academia and the nonprofit sector, have all helped to create a pipeline of over 200 new interventions for improving global health. These carry the potential to reshape the health of the worlds poorest children in the years ahead. There is, however, insufficient capital to fund the full pipeline of new products that are so desperately needed. One key challenge has therefore been to devise a new source of capital to complement traditional philanthropy. Fortunately, many of the

BILL & MELINDA GATES FOUNDATION /SIDA

GLOBAL HEALTH INVESTMENT

GLOBAL HEALTH
LHGP ASSET MANAGEMENT (LIONS HEAD)
INVESTMENT MANAGEMENT PHASE 3 OR EQUIVALENT PROJECT FUNDING

GLOBAL HEALTH OBJECTIVES

INVESTMENT FUND
REPAYMENT OF CAPITAL INTEREST AND WARRANTS

DATA GATHERING

INDUSTRY PARTNERS AND PRODUCT DEVELOPMENT PARTNERSHIPS (PDPS)

health products so needed by developing countries are also relevant in developed countries. The global market for these products creates the opportunity for them to provide a financial return to investors. This dynamic has created the opportunity for a new fund to be established, the Global Health Investment Fund (GHIF), which seeks to invest in late-stage product-development projects that are focused on improving global health, while also offering the potential for a financial return. The fund has raised $108.3 million and has a broad spectrum of investors and stakeholders that includes high-net-worth individuals, institutional investors (AXA, JPMorgan and Storebrand), strategic investors (GSK, Merck and the Pfizer Foundation), government-backed funds (Grand Challenges Canada, IFC, KfW and SIDA) and foundations (Bill & Melinda Gates Foundation and Childrens Investment Fund Foundation). The fund is managed by the London-based asset-management firm Lions Head Global Partners. The fund has been classified as a social impact investment because investors could potentially realize higher returns from new drugs and vaccines aimed at developed country markets. Investors are compensated for this because the fund benefits from a partial capital guarantee provided by the Bill & Melinda Gates Foundation and the Swedish International Development Cooperation Agency. Positive social impact is achieved by focusing investments on the diseases that disproportionately affect the populations of the worlds poorest countries and including requirements to ensure the products are available to the populations most in need.

Causes of death among children under five, 2011

SOURCE: WHOUNICEF CHILD HEALTH EPIDEMIOLOGY REFERENCE GROUP (CHERG) ESTIMATES, 2013

The fund will make investments via a form of mezzanine debt funding, principally for pharmaceutical and biotechnology companies as well as other organizations sponsoring promising late-stage global health products. The intention is to provide capital to accelerate the development of products to address these global health challenges and complete projects that might not otherwise be pursued.

The fund is attracting attention not only because of its potential to accelerate improvements in global health, but also because the model is highly replicable in other areas where investment capital is needed to supplement grant capital. This could include downstream operations in health as well as opportunities in agriculture, energy and infrastructure, where substantial funding gaps remain in developing countries. n

Business, government and the nonprofit sector can leverage each others strengths

PARTNERSHIPS | Allan Pamba, director, emerging markets and Asia-Pacific, GlaxoSmithKline

n discussions of how to improve health care and life chances in the developing countries, such as Kenya, where I am from, financial and structural issues often dominate the conversation not least at conferences such as the World Economic Forum, currently taking place in Davos. This is understandable, as countries with the most acute levels of ill health and poverty often have weak economies, undermined by low levels of governance and relatively high levels of political instability. Such countries have, over the years, enjoyed the support and concerted action of diverse U.N. agencies, international charities and, increasingly, the private sector, with modest degrees of success reported. Government funding for the U.N. has, on average, steadily decreased, as has charitable giving the latter especially following the global economic downturn that followed the banking crisis. On the positive front, relief campaigns have become more sophisticated thanks to advances in technology. Personal philanthropy is a renewed force for good, powered by the vision and benevolence of

information technology billionchildren do not receive basic aires, most notably Bill Gates. vaccines. The attitude of business Therefore, despite adabout its role in society is vances in medicine, affluence also advancing, and this, to and technology coupled me, is the most exciting opwith positive changes in corpoportunity. There is a growing rate behavior these have recognition that integrating yet to generate the positive corporate responsibility with breakthroughs we may have core business strategy is an reasonably expected. opportunity to achieve comThere are several reasons petitive advantage, not an exfor this, going beyond the ercise to appease pressure Allan Pamba, GSK director, budgetary and operational, groups an excellent way of emerging markets and Asiathat need to be addressed. creating shared value with Pacific. They relate to the current subcommunities that, indeed, optimal contribution by govprovide business the license to operate. ernment in countries suffering ill health, Given this positive backdrop, it should be which is well documented. Equally as imporeasy to forecast an end to social and health tant is the need for a change in mind-set in problems, including diseases that blight enkey organizations, which starts with busitire populations. Sadly, this is not yet the ness, government and the nonprofit sectors case. The scale of the health challenge reviewing each other with less suspicion and, mains vast. For instance, sub-Saharan instead, working to leverage each others Africa bears 24 percent of the global disstrengths, notably their knowledge and netease burden, but it commands less than 1 works. percent of global health expenditure. WorldForging pioneering partnerships to meet wide, it is estimated that up to a fifth of development goals is not a new concept.
GSK

However, such an approach has yet to be fully integrated into the collective mind-set of the development community. There are positive signs of a cultural shift, which we are supporting at GSK. For instance, we have launched a partnership with Save the Children that starts in the Democratic Republic of the Congo and Kenya and aims to help save the lives of 1 million children over the next five years. Among other interventions, the partnership will increase the availability not only of lifesaving vaccines, but also of medicines designed especially for children. Save the Children will also have a seat on a new pediatric research and development board were establishing to accelerate progress on lifesaving interventions for under-fives. With Vodafone in Mozambique, we are piloting an innovative M-health solution that could increase vaccination rates in developing countries. By helping parents and healthcare providers exchange information, schedule appointments and track vaccination history via SMS, we aim to reduce barriers to vaccination uptake and followthrough. If successful, this solution, which is

mobile-phone-provider agnostic, would lead to better health outcomes for any country that deploys it, and also potentially better business for vaccine suppliers and telecommunications companies. The combined effect of the companies expertise and that of many other contributing partners not mentioned here will make a more significant impact than working in silos. This also applies to the partnership weve formed with Barclays Bank in close collaboration with the government of Zambia. Together, we are building a costeffective private-sector medicine supply chain, establishing small-enterprise health outlets and testing micro health insurance products. In a continent where the burden of health-care delivery falls by far on struggling governments, this partnership gives a much-needed shot in the arm to an underdeveloped private sector in Zambia, which currently serves only 10 percent of the total population. We would like such partnerships to become commonplace. This may involve a second cultural shift: taking a more positive view of the private sector. A growing and

profitable private sector is a good thing. It generates not only jobs across supply chains, but also the resources needed for investment, innovation and medical breakthroughs. Arguably, there is no zero-sum game in development. If companies become more successful, it is not at the expense of health, the economy or a nation. Contrary thinking misjudges the benign motives and instincts of employees working in multinational companies. The more successful the private sector, the more poorer countries can benefit. Equally, business needs to recognize how its behavior may have contributed to the creation of misgivings in governments and nongovernmental organizations, and be prepared to address legitimate concerns. A mix of inertia and ideology can frustrate relationships and prevent constructive partnerships. In these cases, insights are not always shared, while ideas and innovation investments are not fully leveraged. The matter at hand is too important, and the prize of good health too great, for this to happen in the development community in the 21st century. n

ANDRE J.P. FANTHOME FOR CHMI

ANDRE J.P. FANTHOME FOR CHMI

KAREN DIAS FOR CHMI

Clockwise from top left: Emergency Management Research Institute workers; Shelly Batra of Operation AHSA, an anti-tuberculosis organization working in India and Cambodia; a baby sleeps under mosquito netting in Jakarta; Vincent Mutugi of Access Afya (left) and Nikhilesh Ghushe of Swasth India (right) exchange ideas; emergency workers at an ambulance operated by Ziqitza Health Care Limited in Mumbai; doctor and patients at a Swasth Health Center Clinic in Mumbai. RETURNABLE VALUE | Sev Vettivetpillai, partner, the Abraaj Group

Sustainable capitalism: Honoring the natural relationship between business and society
THE ABRAAJ GROUP

KAREN DIAS FOR CHMI

reat businesses are responsible by their very nature. Moreover, for them, there is no binary choice between making profits and having a positive impact by serving society. Properly practiced, the concept of sustainable capitalism honors a natural relationship between business and society, and is one that acts as a formidable catalyst for long-term economic growth. Sustainable capitalism results from investors and entrepreneurs, as critical components of the economic ecosystem, taking full responsibility for their net impact on society, and investing for an identified deliberate impact and in businesses that inherently foster impact. However, impact investing functions as part of a vital ecosystem, one that requires the mobilization of broad-based

political will. This ecosystem is based on a sense of collective responsibility and on the genuine commitment of all stakeholders to achieving sustainable and inclusive growth across global markets. The private equity industry to which I belong is, on the whole, relatively young, with the business model still being refined, if not defined. Nowhere is this more true than in growth markets. However, I believe that sustainability can be achieved by unlocking value in private-sector companies, as they play a central role in promoting long-term development. Resilient financial value can be attained through consideration of environmental, social and governance (ESG) factors, and by investing in businesses that have a natural incentive to provide quality

goods and services to a broad-based economy. How can this be achieved? From my experience of investing in tourism companies in Latin America and Africa, success has been achieved by ensuring that the business is closely engaged with local communities. Condor Travel S.A., a leading Peruvian travel agency in which we have invested, provides market opportunities for a large number of local micro-businesses that would not otherwise be able to reach customers and promote their services on their own. As part of its service offering, Condor Travel coordinates services from over 600 suppliers into an integrated package for visitors. These services include hotels, restaurants, transportation (air, sea and land), tour guides and

equipment. As a result, the adequately measure our imcompanys growth since inpact, we developed a proprivestment has had a significant etary method of measureimpact on the local supply ment called the Abraaj Sustainability Index (ASI). chain, with socioeconomic benefits related to employment This tool measures the impact of our partner compaand business development. nies across six key pillars and I believe that the relationship between business and 78 relevant quantitative and qualitative indicators. The ASI society should be both mutually beneficial and value aclooks beyond the financials to include good governance, emcretive what we do can ployee engagement, health have a significant impact on Sev Vettivetpillai, a partner in and safety, benefit to the the economies and communi- the Abraaj Group. community and social responties in which we invest. As insibility. This has enabled us to regularly identivestors, our ability to measure performance fy specific areas for improvement, gain valuin our partner companies is fundamental. In able insight into the relationship between 2008, having found a lack of external tools to

financial performance and intangibles, and provide a framework for engaging partner companies on key nonfinancial issues. The net impact of an approach to sustainable capitalism by focusing on both value preservation and value acceleration enhances the long-term return on investments. We have observed this time and time again as our partner companies seize new, profitable opportunities while cultivating competitive advantages. The sustainable capitalism approach understands that business success and inclusive responsible practices are mutually reinforcing. It recognizes that profit can be measured through more than just the bottom line, as ultimately profit is about creating lasting foundations for resilient economic progress. n

ANDRE J.P. FANTHOME FOR CHMI

OSCAR SIAGIAN FOR CHMI