Rethinking Impact Investments Through Biomimicry
Exploring design opportunities in the impact investment ecosystem
Design Research
Jan 2022 - Jun 2023 | 6 months | Copenhagen Institute of Interaction Design
Client: Rockefeller Philanthropy Advisors & Abundance Circle
Brief: Explore design opportunities in the impact investment space
MY ROLE
Recruitment
Research
Synthesis
Report writing & design
Project management
TEAM
Simona Maschi
Iskra Uscumlic
Diana Pang
Funded by Rockefeller Philanthropy Advisors, this project takes a life-centred approach to explore design opportunities in the impact investment space. Through a biomimicry lens, it draws inspiration and guidance from nature at a systemic level.
The project examines the perspectives, challenges, and work of 26 experts from 11 countries, representing diverse sectors within the global impact ecosystem. Additionally, it showcases 10 inspiring impactful initiatives from various parts of the world that emphasise collaboration across functions, industries, and geographies.
Background
The $2.28 trillion impact investment industry highlights the importance of investing for positive social and environmental outcomes. Yet, only 28% of these funds currently support social impact initiatives, indicating a crucial need for more investments in positive societal change.
The Abundance Circle is an initiative sponsored by Rockefeller Philanthropy Advisors (RPA) to develop new types of investment vehicles and governance frameworks to increase both social impact and financial return.
As the inaugural project of this initiative, it brings together equity investors, NGOs, and leaders from multilateral organisations as general partners to explore opportunities in the impact investment space. The next phase of work will focus on testing prototypes for these vehicles in partnership with established social movements.
Overview
Our research project involved interviewing 26 individuals from various sectors within the global impact ecosystem. This included capacity builders, NGOs, and impact investors.
To deepen our investigation, we partnered with Rebeca Mora-Castro, a biomimicry expert to draw inspiration from the intricate workings of nature and the practice of biomimicry. By incorporating nature-inspired principles into our research, we aimed to gain a fresh and systemic perspective that can guide us towards innovative design solutions.
Our research identifies four emerging opportunity areas based on interviews with professionals from various sectors in the global impact ecosystem:
need for a new system
redefining returns
fostering closer proximity through trust and collaboration
addressing the importance of education in impact investment
01. Need for a New System
BRIDGE NEEDS & EXPECTATIONS
Set realistic return expectations.
Individual well-being is crucial for meeting communal needs.
FOSTERING A LEGACY
Embrace the power of clarity and purpose in your vision.
Engaging future generations fosters a lasting commitment to impactful decisions.
Transparency is crucial for accountability and equity.
Balancing long-term vision with short-term sacrifices.
DESIGN OPPORTUNITY
Balancing realistic investment returns with addressing community needs creates tension. This offers an opportunity for a new system or ecosystem that supports both aspects. This system needs a shared vision, stakeholder collaboration, accountability, and a focus on present and future needs.
What Can We Learn From Nature?
Expectations are subjective and ambiguous. It's crucial to be mindful of our expectations. Impact investment, a human creation, should align with ecological laws and limits. Inspired by nature, it can adopt an ecosystem approach, support regenerative practices, prioritise long-term thinking, and embrace adaptability and innovation.
We need a new framework that values the continuous cycles of natural systems, their adaptability, and their potential for positive change.
“Continuation of civilisation requires us to stay within certain thresholds; some are moral imperatives and others are biogeophysical boundaries.”
— Johan Rockström
Director of the Potsdam Institute for Climate Impact Research
02. Redefining Returns
BALANCING RISK AND IMPACT
Optimising investments by matching risk appetites
A new lens on data unites and brings awareness
Leveraging data to envision shared futures
DESIGN OPPORTUNITY
The current investment landscape has a challenge: risk-averse investors struggle to find low-risk projects, and innovative projects lack the needed risk capital. By redefining returns, we can create an opportunity space that aligns the needs of both conservative investors and high-potential projects.
What Can We Learn From Nature?
True wealth for living beings is in fulfilling basic needs. Chasing monetary gains often harms natural support systems, reflecting disconnected human practices and economies. To ensure a healthy planet for future generations, we need a mindset shift and a redefined understanding of returns. In nature, returns encompass organisation, healing, enhancement, and upcycling.
What if "returns" can be reframed as regathering, reconfiguration, and healing, going beyond monetary gains?
“Mainstream economics today proceeds, with rare exception, with no reference to the laws of physics, chemistry, or biology, so it is clear why it does not respond to the planet.”
— Brown and Garver
Right Relationship: Building a Whole Earth Economy
03. Closer Proximity Through Trust & Feedback Loops
BETTER COMMUNICATION AND FEEDBACK LOOPS
Move beyond milestones, and embrace feedback loops.
Respecting experiences and deep listening are key.
Harnessing stakeholder collaboration as a powerful risk mitigation strategy.
TRUST AS A CURRENCY TO FUEL IMPACT
Trust, emotional connections, and relationships can strongly impact outcomes.
Trust is built up by gradually signalling greater commitment
Data as an impact measurement accountability exercise
CLOSENESS BRINGS EMPATHY
Proximity transcends boundaries
Technology as a driver for closeness
DESIGN OPPORTUNITY
Open communication, active listening, and collaborative co-creation are crucial for a more interconnected future. Designing a platform that prioritizes diverse metrics, engages stakeholders, and maintains feedback loops can enhance efficiency. Fostering collaboration over competition, leveraging trust, and promoting effective communication can enable scalable change and meaningful connections in impact investing.
What Can We Learn From Nature?
Nature, including living entities and the biosphere, is made of atoms or molecules and defined by interactions. Life's continuity and evolution emerge from processes in networks of interactions.
Understanding the interconnectedness of all systems lets us approach expectations with an open and flexible mindset, adapting and growing in a constantly changing world.
“Species interactions are part of the framework that forms the complexity of ecological communities. Species interactions are extremely important in shaping community dynamics. It was originally thought that only competition was the driving force of community structure, but it is now understood that diverse interactions such as symbiosis, parasitism, commensalism, among others, along with their indirect effects and the variation of responses within and between species, define communities and ecosystems.”
— Anurag A. Agrawal
James A. Perkins Professor of Environmental Studies, Cornell University
04. EDUCATION
PUTTING A DIFFERENT LENS ON EDUCATION
Empowering the masses through education to drive change at the top of power.
Educating on different needs, while seeing the impact world as a spectrum.
DESIGN OPPORTUNITY
The education system should evolve to include impact investing and diverse needs, empowering individuals for positive change. Making impact education accessible and appealing to a broader audience, and promoting a holistic understanding of diverse needs, fosters clarity, intention, and values. This empowers individuals to advocate for impact investments and contribute to building a more inclusive society.
What Can We Learn From Nature?
Nature teaches us that learning, social interactions, collaboration, and knowledge-sharing are vital for species survival and sustainability. Working together and exchanging information helps develop efficient solutions that meet everyone's needs.
In decision-making, incorporating local knowledge, especially from indigenous communities, and building upon existing practices and wisdom recognise their inherent value, benefiting from diverse community knowledge.
“The elements of transformation exist, but are not yet dominant in society.”
— Frances Westley
J.W. McConnell Professor, University of Waterloo
Design Principles
START SMALL
Impact creation in complex contexts requires a thoughtful and iterative approach that priorities community involvement, testing assumptions, and starting small.
FOSTER ECO-SYSTEMIC VALUES
Shift from 'competitive advantage' to 'collaborative advantage' to create a world that works for all. Empower communities through community-oriented approaches, encourage participation, and distribute resources equitably.
STAY PRACTICAL
Focusing on technical perspectives, emphasising coordination, and working within established frameworks can lower the chance of getting caught up in conflicts.
EMBRACE LOCAL SCALE
Promote transparency, support local economies, and consider local needs in decision-making for a sustainable and inclusive approach. Use local resources to decrease carbon footprint and reduce ecological and social impacts.
UNDERSTAND LIMITATIONS
Design systems that operate within the carrying capacity of the environment and promote sustainability. Protect essential resources like soil, biodiversity, and energy, avoiding their degradation or depletion and aiming to enhance them for future generations.
RESPECT ON-THE-GROUND KNOWLEDGE
When introducing new ideas and technologies, build upon existing local practices, recognise the value of local solutions, and promote cultural diversity.