IMD Annual Report 2021

29 Special features

Leading the way According to BlackRock CEO and Chairman Larry Fink, the next 1,000 unicorns – companies worth more than $1 billion - will be in climate technologies. What was once a fringe business is now a big investment opportunity that serves the dual purpose of addressing climate change while also driving prosperity. In fact, while not all social innovation is profit-driven, many successful social enterprises are now maturing to the stage where they can transform industries and attract significant investment, either through funds, venture capitalists or corporate acquisitions. At the same time, traditional investment funds are establishing vehicles around ESG and impact, and putting pressure on companies to show measurable impact. This is creating unprecedented demand for education and research to help executives and organizations navigate an unfamiliar landscape where risk, reward and impact need to be assessed, understood and balanced with appropriate solutions. “We have moved from the broader understanding or the intention segment of the purpose phase to realizing that, in practice, we have very specific challenges that are very technical and require a cross section of skills – skills that many companies don’t have,” said Farber, co-author of The elea Way: A learning journey toward social impact . “It is now a field that is professionalizing, on the corporate and the investor side – that requires new skillsets at the corporate and investor level,” she added. In response, IMD is offering pioneering learning experiences and thought leadership that challenge mindsets, equip executives with the tools required to master the social enterprise and impact investing ecosystem, and help companies transform for social impact. This ranges from impact investment modules and discovery expeditions in its degree programs to exploring ESG investing trends, the impact investment spectrum, and bespoke finance solutions for investors and social enterprises in research. The elea webinar series “Mobilizing private capital to spark social innovation”, featuring diverse impact actors and themes, raised the profile of the center’s work and fostered a global community for knowledge sharing and exchange during the pandemic. “Our mission is to challenge what is and inspire what could be, challenging the status quo and corporate business models,” Farber explained. “If we want to live our mission and vision, we need to be thought leaders in this field. So, how can we continue to bring innovative tools and push the boundaries?”

What is social innovation?

Social innovation creates new solutions (products, services, markets, models, processes) to the benefit of global society by addressing social and environmental needs more efficiently and effectively than current policies and businesses.

Social enterprises such as Inka Moss blend social impact with prosperity.