Organizations Balancing Economics, the Environment, and the Community

Organizations Balancing

Economics, the Environment, and the Community

Murray Clay Managing Partner

October 16, 2015

Hawai‘i – Earth’s most isolated land mass has reason to be more self-sufficient

91% reliant on food imports

92% reliant on imported energy

Limited space for waste disposal

What is the Ulupono Initiative?

We are a Hawai‘i-‐focused impact investment Firm, using for-‐proFit and non-‐proFit investments to improve the quality of life for island residents in three key areas:

More Local Food More Renewable Energy Less Waste

Impact Investing: Achieving & Measuring Results

•  We work through both for-‐proFit and non-‐proFit organizations to help catalyze large-‐scale, replicable change toward a more self-‐sufFicient Hawai‘i

•  We’re focused on making a signiFicant impact in three key areas by 2030:

Impact Investing Approach

•  Measurable Impact at State Level

•  Filter Feed vs. Creating Opportunities

•  Work with “Natural Owners” vs. Building from Scratch

•  Learning and Adapting

Hybrid Model

Private Equity: For-‐Pro?it

Grants: Not-‐for-‐Pro?it

Mission Focused, Values Based

Impact Investing Path

Not-‐For-‐Pro?it For-‐Pro?it •  Tends to require constant support until critical mass of social adoption reached

•  Builds foundations & conditions for change

•  Creates new industries, awareness, & paradigm shift

•  Tends to self-‐sustain, replicate, & expand

FUNDING TYPE – FUEL

$

Companies/Physical Assets

TARGET – VEHICLE

Public Opinion/Education

Policy: Lobbying/Advocacy

Policy: Capacity Building/Analysis

Non-‐Pro?it Organizations Systems Thinking – Road Map

Progress & Forecasts – Dashboard

Systems Change

Our Investment Criteria

•  To have the greatest impact on our investees and our mission, Ulupono considers several criteria


Impact and Mission Alignment

•  We look for potential to catalyze meaningful changes in moving Hawaiʻi toward sustainability through Ulupono’s three objectives


•  We seek to nurture innovative ideas based in Hawaiʻi, recognizing that a healthy economy and a healthy environment go hand in hand


Focus on Hawaiʻi


•  We strive to Find projects that display a unique or innovative advantage over others in industry/class


Focus on Hawaiʻi

Best-‐In-‐Class


•  We invest in teams with strong, proven track records – or data, models or metrics to support the clearly deFined vision – and a plan of action


Focus on Hawaiʻi

Best-‐In-‐Class Strong Leadership and Management


•  We seek a realistic plan for long-‐term sustainability as a standalone entity


Focus on Hawaiʻi


Long-‐Term Viability


•  We identify with organizations that exhibit shared core values of respect for others, high standards, learning and growth, creativity, courage, humility, and a pono approach


Focus on Hawaiʻi



Shared Values


•  We encourage building alliances, collaborating and working together within our diverse community


Focus on Hawaiʻi



Shared Values Collaboration Wanted

WHY WE INVESTED Honolulu Seawater Air Conditioning (HSWAC) plans to provide air conditioning to buildings in downtown Honolulu by pumping deep ocean water through a pipeline.

IMPACT

One of Hawaiʻi’s largest energy efFiciency projects. HSWAC’s district cooling system will eliminate the need for 178,000 barrels of oil per year by saving enough electricity to power more than 10,000 homes. Will help decrease Oʻahu’s environmental footprint and the state’s oil dependency.

WHY WE INVESTED Kunia Ag Park promotes sustainable agriculture by utilizing land that sat fallow for years to now feed our community.

IMPACT

184 acre plot located in Central Oʻahu leased to 18 farmers. Made available the land, infrastructure and technical assistance to help farmers in gaining economic self-‐sufFiciency, scale and access to markets throughout Hawaiʻi. Recently launched “Local Inside” CSA, sourced almost entirely from Kunia Ag Park.

WHY WE INVESTED Ulupono Initiative partnered with Parker Ranch to create the Paniolo Cattle Company, a joint venture aimed at statewide local beef production. The pasture-‐to-‐table enterprise taps into a growing demand for high-‐quality, affordable, locally raised grass-‐fed beef.

IMPACT

Creates a local thriving cattle industry in Hawaiʻi. Protects Hawaiʻi against volatility in fuel and feed costs. Ensures a quality, consistent beef product is available to all Hawaiʻi consumers.

Lessons Learned

Work with operating partners

Community engagement

•  Talk to them early and often

Be open to risks that can make change happen

Mahalo!

Any Questions?

www.ulupono.com Twitter: @ulupono

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Organizations Balancing Economics, the Environment, and the Community