Mongolia, 29 October - 9 November 2012
In October 2012 GIFT conducted the inaugural Sustainability Drives Future Business programme for the world’s largest chemical company BASF.
22 global executives from across BASF’s various businesses first spent one week in Hong Kong examining the drivers of change in the market and the role of their business in society.
During the second week the group traveled to Mongolia to work on a real-world business challenge in the country’s underperforming agricultural sector. Participants channeled their business acumen and wide range of experience towards the creation of a tangible output with measurable economic and social impact.
In GIFT's 28th YLP, 30 executives from 11 countries spent two weeks in Hong Kong and Mongolia, and crafted an initial blueprint for the first ever impact investment fund to be set up in Mongolia. Of the 30 participants, six came from Mongolia, holding senior level positions in organisations such as Oyu Tolgoi LLC, the Ministry of Finance, XacBank, Monet Capital and Inter Group. Other companies represented included Orix, NEC, DuPont, Bosch, DBS Bank, and BASF. The diversity in participant cultures, backgrounds, and work experience added dynamism and fresh perspectives in achieving project goals. The programme was conducted in close partnership with TenGer Financial Group, a regional family of companies leading the way in providing fair access to broad and inclusive financial services in Mongolia.
By the end of the programme, the partcipants produced a detailed report, complete with analysis and recommendations on the fund concept as applied to the current developmental state of Mongolia. The report also presented original ideas on how the fund can be managed, with the importance of creating social value. Some of these ideas include: using a budget-based management fee structure, delivery of technical expertise and support alongside investment, and an emphasis on patient capital rather than aggressive exits. All of these features stand in contrast to the conventional private equity fund approach and will be used to attract the new breed of global investors who do not focus solely on maximising their returns. Click here for an introduction to the report.