Atlanta’s Creative Financing for Green Projects

April 26, 2019

Funded in part by a grant through the Rockefeller Foundation’s Innovative Financing program, Atlanta’s Department of Watershed Management (DWM) recently raised $14M to provide storm water improvements in the Proctor Creek Watershed.

Only the second Environmental Impact Bond (EIB) in the country – following one by DC Water in Washington, DC – this is the first publicly traded EIB. Mission-oriented broker dealer Neighborly, which went through the Atlanta-based Points of Light’s Civic Accelerator program, issued the bond.

Instead of raising capital through municipal bonds, the way city departments traditionally raise debt to fund capital improvement projects (CIPs), EIBs provide departments direct access to investors seeking measurable impact – in this case, captured storm water.

Mohamed Balla, the Department of Watershed Management’s Deputy Commissioner

Why use an EIB?

It wasn’t hard for DWM to decide to raise capital through an EIB; not only is the EIB expected to save 30 to 40 basis points on the bond’s rate, but the feasibility and transaction costs were covered by the Rockefeller Foundation. Quantified Ventures, which worked on the DC Water EIB, provided technical assistance.

The EIB also provides financing for storm water infrastructure now, something the department lacks.

“For us, the EIB route is because we have a need for storm water funding,” said Mohamed Balla, DWM’s deputy commissioner. “But we don’t have any stormwater funding mechanism.”

Without dedicated funding for stormwater infrastructure, any improvements would have to be prioritized among DWM’s many CIPs.

So having investors with an impact lens changed the equation: “To the extent that we have a funding source or an investment source that is willing to fund these types of projects, we were all over it,” added Balla.

Realigning risk and reward

The investors’ return will be determined in 2025 by the amount of stormwater captured by the infrastructure improvements. If they exceed 6.52 million gallons – surpassing expectations – the City will pay investors a one-time “performance payment” in addition to regular interest payments.

On the flipside, DWM expects to save money through decreased stormwater treatment and remediation costs – a savings of up to $18M over the bond’s life. For example, with less flooding the city won’t have to spend as much on neighborhood clean-up, and these savings will continue throughout the useful life of the improvements.

According to Balla, DWM is tracking workforce development, environmental education, and greenspace created. While not tied to the bond’s payout, the Proctor Creek Watershed has several brownfields, deals with regular flooding issues and is rather economically depressed. Their hope is that these improvements will ripple positive social benefits through the area.

“Residents will share in the success with us,” said Balla.

While storm water improvements could be funded through traditional capital markets, Balla and his colleagues at DWM found a way to leverage this creative financing mechanism to solve an immediate problem.

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The Department of Watershed Management is dedicated to providing the highest quality drinking water and wastewater services to 1.2 million residential, businesses and wholesale customers at the lowest possible cost, while protecting urban waterways, conserving natural resources, and providing clean, safe water for downstream customers. For more information, please visit www.atlantawatershed.org. (Press release.)

The Georgia Social Impact Collaborative (GSIC) provides resources to connect, educate and inspire stakeholders for the purpose of accelerating the development of Georgia’s impact investing ecosystem. Recently, GSIC announced the launch of the Georgia Social Impact Map (the “Map”), an interactive platform designed to connect and educate stakeholders interested in accelerating impact investing for social outcomes. Intended as a resource for communities around the state, the Map connects new forms of capital to sustaining and scaling solutions to social challenges. GSIC also provides workshops and programming for training specific groups of stakeholders on ways to leverage impact investing to achieve their impact goals, such as the workshop described below, which was attended by 30 leaders of some of GA’s top social enterprises and nonprofits.

Chubb Foundation’s Inaugural Pitch Night Makes Impact

April 24, 2019

By: Brandon Chubb, Chubb Foundation

 

What better way to spend an evening than to hear elementary school kids pitch innovative products and ideas that they’ve created all on their own? Well, that’s exactly how the Chubb Foundation’s evening was spent with its Inaugural “Pitch Night” at The Gathering Spot in downtown Atlanta. NFL brothers Brandon and Bradley Chubb started their foundation in 2017 with a mission to activate human potential.

Last year, the Chubb brothers identified the lack of entrepreneurship (as a subject) taught in schools at a young age and made that the sole focus of where they wanted to make an impact. “We believe entrepreneurship is so important at such a young age,” Brandon Chubb said. “We want to plant that seed early and better these kid’s futures.”

They created “Moving the Needle: Effecting Change Through Entrepreneurship,” a 10-week program with Active Youth Academy, an Atlanta Public School after school program, with curriculum focused on entrepreneurship. Over these 10 weeks, a 25-student class with 10 and 11-year-old students met after school at Dobbs Elementary School to learn how to activate their inner entrepreneur.

“Pitch Night” marked the end of the program. Students from Active Youth Academy pitched their innovative products in a Shark Tank-inspired presentation and received a certificate for completing the 10-week entrepreneurship program. Year one was a success and the Chubb Foundation looks forward to continuing to activate human potential across metro Atlanta.

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The mission of the Chubb Foundation is to activate human potential. Whether it’s coaching a camper’s efforts on the field or challenging a student in the classroom. From the early stages of the foundation, Brandon and Bradley Chubb knew they wanted to come up with solutions to problems their communities faced, but it wasn’t until a thought-provoking conversation with a mentor that sparked the inception of the “Moving The Needle” program-a 10 week program with Active Youth Academy, an Atlanta public school after school program, with curriculum focused on entrepreneurship. For more information and to donate please visit chubbfoundation.com.

The Georgia Social Impact Collaborative (GSIC) provides resources to connect, educate and inspire stakeholders for the purpose of accelerating the development of Georgia’s impact investing ecosystem. Recently, GSIC announced the launch of the Georgia Social Impact Map (the “Map”), an interactive platform designed to connect and educate stakeholders interested in accelerating impact investing for social outcomes. Intended as a resource for communities around the state, the Map connects new forms of capital to sustaining and scaling solutions to social challenges. GSIC also provides workshops and programming for training specific groups of stakeholders on ways to leverage impact investing to achieve their impact goals, such as the workshop described below, which was attended by 30 leaders of some of GA’s top social enterprises and nonprofits.

ONCE by WildArk: Linking Ecosystem Protection to Consumer Behavior

April 22, 2019

By: Sydney Hulebak, ONCE by WildArk

Human activity around the globe is causing the sixth mass extinction. In the last 50 years alone, 50% of the world’s individual species, 58% of the world’s biodiversity and 45% of the world’s forests have been lost. And the iconic species that protect our ecosystems and bring joy and happiness to populations around the world are being eradicated at astonishing rates. Now is the time to take action to protect what we have left. But how?

WildArk’s mission is to secure space for biodiversity protection worldwide.

It accomplishes this mission through (1) positive Storytelling of the individuals and organizations around the world making a difference, (2) funding solution-oriented Science research, (3) partnering with and providing financial, marketing and administrative Support of seasoned and new conservation organizations, and (4) protecting wild Space through more dedicated programmatic work on conservation projects, including our recent work in Papua New Guinea.

WildArk’s strategy and priorities are driven by the WildArk 100, a list of 100 iconic species that live within 50 wild areas around the world that if protected could provide up to 89% biodiversity benefits. Although this is a big task, WildArk approaches it one project at a time, with focused support of local partners and indigenous communities.  

Through this work, our team of optimistic planet-protectors identified a need for a for-profit model that reinforces this mission by nudging the public towards more conscious consumerism. From those discussions, ONCE was born.

ONCE is a platform for sustainable living. It aims to inspire changes in consumer behavior by sharing news, stories and tips from people who are choosing sustainability in both their personal and professional lives.

And since the fashion industry is the second largest polluter in the world, just after the oil industry, with challenges emerging as vast as extreme water consumption, microfibers in our oceans, waste accumulation and greenhouse gas emissions, companies need a solution.

Consumers are changing. Forty-six percent of consumers are willing to pay extra for products and services that give back to society, and 63% of those are under the age of forty. To that end, 90% of millennials have said that they will stop buying from a company with bad environmental practices and 81% expect the companies and brands that they support to make public declarations of their corporate citizenship.

And while these demands are growing, there are few marketplaces in existence that curate products transparently based on a list of sustainability and social standards while also directly linking sales and mission to organizations that are directly supporting, executing and partnering on ecosystem protection work.

Through ONCE’s multi-tiered approach, we aim to create a lifestyle brand that our consumers associate and want to interact with on multiple levels, with each engagement delivering something of tangible value to the consumer, while engaging them in our mission in a purposeful way.

Eventually, ONCE will launch a line of sustainable products through an eCommerce marketplace with the intent of giving away 50% of all profits generated to WildArk’s global, ecosystem protection work.

ONCE’s hope is that this won’t be a differentiator for our brand forever. We want others to join us on this journey towards sustainability, so that we can interact with our planet in a way that is not degrading, but rather regenerative- stewarding it for future generations.

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WildArk is a registered not-for-profit committed to supporting conservation initiatives that have tangible outcomes for biodiversity protection worldwide. We invest in scientific research for biodiversity protection and help protect land for conservation as well as share positive, uplifting stories of conservation successes in order to inspire others to reconnect with nature and work to protect it. For more information, visit www.wildark.org or follow us on Facebook, Instagram and Twitter.

ONCE by WildArk is a platform for sustainable living for the planet. We are storytellers of those making sustainable choices working towards a healthier planet for future generations. For more information, visit www.once.eco or follow us on Facebook and Instagram.

The Georgia Social Impact Collaborative (GSIC) provides resources to connect, educate and inspire stakeholders for the purpose of accelerating the development of Georgia’s impact investing ecosystem. Recently, GSIC announced the launch of the Georgia Social Impact Map (the “Map”), an interactive platform designed to connect and educate stakeholders interested in accelerating impact investing for social outcomes. Intended as a resource for communities around the state, the Map connects new forms of capital to sustaining and scaling solutions to social challenges. GSIC also provides workshops and programming for training specific groups of stakeholders on ways to leverage impact investing to achieve their impact goals, such as the workshop described below, which was attended by 30 leaders of some of GA’s top social enterprises and nonprofits.

Selling Pecans to Feed Those in Need

April 10, 2019

By: Andrea Jaron, Chief Development Officer, Meals on Wheels Atlanta

Meals on Wheels Atlanta is a nonprofit organization dedicated to serving our metro area’s seniors in need. In exploring ways to diversify funding sources and expand our impact, our leadership – with the help of the 2018 class of Leadership Atlanta – recognized that we were using our kitchen only during the mornings from Monday through Friday.

We thought, what if we took this asset – our kitchen – and used it for another purpose when it wasn’t in use?

Last summer, our team at Meals On Wheels Atlanta launched Purposeful Pecans to help support our flagship Home Delivered Meals program that provides nourishing meals to food-insecure and homebound seniors in Atlanta.

Georgia-grown and prepared in our own kitchen, these handcrafted, gluten-free pecans were created exclusively by Robert Gerstenecker, former executive chef at Four Seasons Hotel Atlanta.

In February, First Presbyterian Church of Atlanta named us a finalist in their inaugural Epiphany Challenge, a social entrepreneurship initiative that helps identify, nurture and fund projects and start-ups that align with the church’s values and mission by addressing social challenges.

After months of hands-on business coaching, workshops and presentations, First Presbyterian selected us as one of five recipients awarded a grant to provide start-up funding for the expansion of Purposeful Pecans. With this grant, our organization is in the process of growing the “Purposeful” product line into more than just pecans and will launch two new products later this spring: a gourmet popcorn in partnership with local Caja Popcorn and a dark and milk chocolate bar with Athens-based Condor Chocolates. We are developing a corporate and holiday gift box that will include all of the Purposeful products.  We deliver, wrap, and ship.  

Here’s the impact: Profits from Purposeful Pecans led to the delivery of an additional 2,200 meals in 2018; and this year, proceeds should lead to more than 12,300 additional meals.

This social enterprise is making a difference already, and we are committed to growing the business into a sustainable revenue source that knows no limits.

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The pecans are currently available in two flavors-cinnamon star anise and hot and sweet, and come in 8 and 16 ounce bags. You can buy the pecans at our online store and at specialty retailers around town including Pine Street Market and the Market at the Hyatt Regency Atlanta.  The St. Regis Atlanta sells a snack size bag in their mini-bars. And our team is at the Peachtree Road Farmers Market every weekend.  

Meals on Wheels was founded in 1965 to support seniors struggling with food insecurity and social isolation. What began as a small soup kitchen has now grown to an organization whose mission is to support senior independence through meals, shelter, education, and community. Over the years, we have grown and expanded program offerings to respond to other critical needs facing seniors in our community. Through our flagship meal services program, which provides nourishing meals to low in-income and homebound seniors in Atlanta, and home repair and maintenance services, our vision is to ensure that no Atlanta area senior is hungry, cold or forgotten. For more information, visit www.mealsonwheelsatlanta.org or follow us on Facebook, Instagram and Twitter.

The Georgia Social Impact Collaborative (GSIC) provides resources to connect, educate and inspire stakeholders for the purpose of accelerating the development of Georgia’s impact investing ecosystem. Recently, GSIC announced the launch of the Georgia Social Impact Map (the “Map”), an interactive platform designed to connect and educate stakeholders interested in accelerating impact investing for social outcomes. Intended as a resource for communities around the state, the Map connects new forms of capital to sustaining and scaling solutions to social challenges. GSIC also provides workshops and programming for training specific groups of stakeholders on ways to leverage impact investing to achieve their impact goals, such as the workshop described below, which was attended by 30 leaders of some of GA’s top social enterprises and nonprofits.

Georgia Tech Hosted Eastern Regional Global Social Venture Competition Finals

Originally published on Scheller News on March 25, 2019

The Global Social Venture Competition (GSVC) empowers the next generation of social entrepreneurs by providing them with mentoring, exposure, and over $80,000 in prizes to transform their ideas into ventures that address the world’s most pressing challenges using technology for good. Since 1999, the GSVC has helped more than 6,500 teams from 65+ countries across the globe and distributed more than $1M in prize money. Highlights of this year’s competition included:

  • For the sixth year, Georgia Tech partnered with University of California Berkley’s Haas School of Business for the Global Social Venture Competition
  • Celebrating its 20th anniversary, this year’s theme was “Technology for Good”
  • Over 20 leaders from the for-profit & non-profit sectors met to judge regional finalists on business potential, social impact potential, and likelihood for success
  • Two teams from the Eastern U.S. region will participate in the Global Finals to be held at U.C. Berkley (on April 5) for over $80,000 in prizes

This year, the 20th anniversary of the competition, there were 692 social ventures entrants from 67 countries. Since 2013, Scheller College of Business at Georgia Tech has been a strategic partner school for GSVC, coordinating the competition’s executive and regional final rounds for all ventures coming from schools in the eastern United States. This year’s regional finals were hosted at Scheller Friday March 1st and featured 17 social ventures spanning industries such as healthcare, biotechnology, search & rescue virtual education, recycling technology, and adaptive technology solutions.

The day brought together over 20 judges, local Atlanta-area leaders from the for-profit and non-profit sectors, to evaluate all social ventures based on three primary components-business potential, social impact potential, and likelihood for success. Initially, judges met in small groups to bring the field of 17 ventures down to eight. The afternoon session, moderated by Sam Moss of the East Lake Foundation, narrowed the field to four, which were then interviewed virtually via video conference. Schuyler Baehman, a regional finals judge from Southern Company, said of the competition, “I was truly impressed by the thoughtfulness behind each and every presentation we heard as we work to find solutions to some of the largest issues facing our world today.”

Ultimately, two ventures, Magnomer and Key2Enable were selected to advance and compete in the global finals. These two organizations were distinguished from the rest of the competition through a combination of three potentials – business success, breakthroughs in social impact, and unique positioning for market success. Magnomer creates recyclable bottle packaging through use of magnetizable ink coatings – these coatings complement materials separation during recycling and allow for plastic bottles to be recycled back into plastic bottles. Key2Enable empowers people with disabilities to develop skills and provides access to technology through assistive keyboard technologies. Miguel Granier, a Regional Finals judge and Managing Director of Invested Development, said “I really appreciate the impact that both can deliver. It’s quite impressive.”

The GSVC team at Georgia Tech Scheller College of Business is led by Dori Pap, Assistant Director for the Institute for Leadership & Entrepreneurship, as well as a board of MBA students and the GSVC Advisory Board. The eastern U.S. region has been successful in recent global competitions. NeMo finishing as runner-up in 2018 and Kheyti winning the global competition in 2017. NeMo is now working with key stakeholders to ensure user-centric design in product development process. They described the significance of the competition succinctly, “Along with the second-place award, we are thankful for the connections formed with extraordinary entrepreneurs from around the world and continued conversations with experts in social innovation and building successful startups.”

The GSVC at Georgia Tech is made possible by title sponsor, Southern Company, as well as sponsorships from Hands On Atlanta, Invested Development, and Mosely Ventures. The GSVC has also received support from the Georgia Tech community through the Ray C. Anderson Center for Sustainable Business, Venture Lab, CIBER, and the Scheller College of Business. Additionally, GSVC is supported by a generous volunteer community of over 50 judges and mentors who assist with coordinating the competition and coaching competitors. Thanks again to all who supported the GSVC at Georgia Tech and best of luck to Magnomer and Key2Enable at the Global Social Venture Competition Finals in Berkeley in April!

Update: Key2Enable won the top award at the 2019 Global Social Venture Competition and Magnomer placed in the top 6 of 692 entries worldwide.

The Georgia Social Impact Collaborative (GSIC) provides resources to connect, educate and inspire stakeholders for the purpose of accelerating the development of Georgia’s impact investing ecosystem. Recently, GSIC announced the launch of the Georgia Social Impact Map (the “Map”), an interactive platform designed to connect and educate stakeholders interested in accelerating impact investing for social outcomes. Intended as a resource for communities around the state, the Map connects new forms of capital to sustaining and scaling solutions to social challenges. GSIC also provides workshops and programming for training specific groups of stakeholders on ways to leverage impact investing to achieve their impact goals, such as the workshop described below, which was attended by 30 leaders of some of GA’s top social enterprises and nonprofits.