Document summary
'Impact on Investment' rather than 'Impact Investing' - The social businesses set up by European companies as part of their emerging market strategies deploys inclusive business models. This report looks beyond companies' social impact claims to analyse the economic value, business context and associated risks of these activities, particularly at the base of the economic pyramid (BoP). While most sectors' sales exposure to the BoP is still very limited and the idea that there is a tremendous low-hanging market potential remains questionable in light of the hurdles observed, we highlight European mobile carriers' ability to derive substantial revenues from the BoP. This report stresses the importance of taking a broad, long-term perspective, encompassing the many impacts of the BoP population on multinationals, over and above the top line. It examines key factors of value creation on the back of leading BoP strategies in other sectors, with the food industry striving to safeguard supply while 'licence-to-operate'- related benefits and intangible upside (eg innovation) play crucial roles for pharma, utilities, cap goods, oil & gas, building mat, banks and insurers.