Giving It All Back
News and UpdatesOct 21, 2020
Giving back 100% of profits to worthwhile causes is not a new nor a unique idea. GreenPact’s Nature Stimulus Project got its inspiration from two powerful sources that have demonstrated the viability of the concept and encouraged its replication: 1) the Newman’s Own Foundation which has been 100% of its profit to charity since 1982 (https://newmansownfoundation.org/), and 2) a book written George Ortega called Climate Rescue Capitalism (https://g.co/kgs/8dAHVS) that advocates for the production and selling of alternative household and other consumer products then using its profit to fight climate change. In the Philippines, the same concept is being implemented and is succeeding. Hope: Business for Good (https://www.generationhope.ph/) is “the first Philippine company to donate 100% of its profits to education through the building of public-school classrooms.”
GreenPact’s Nature Stimulus Project (NSP) assimilates the powerful ideas behind the initiatives mentioned above. Its value added is that rather than developing its own products at once, it will instead work with local communities and organizations who are already producing consumer products. It will build on existing value chains and contribute to where it matters most especially in addressing the last mile challenges of marketing and managing end-of-use materials or waste. GreenPact will facilitate a convergence of services, technical and possibly financial, to enhance critical paths along community value chains. GreenPact will procure and re-sell their products for profit with the main selling point of giving back 100% of its net income to protect the ecosystems services that underpin their livelihood.
The intention to work with local communities is influenced by the experience of people behind GreenPact in development and conservation work where development aid and projects are the main pillars of accomplishments. In their personal experiences, significant portions of development projects went to supporting local livelihoods implemented by indigenous communities, local farmers, and fisherfolk. The broad intentions behind is to provide people with additional or alternative sources of income to uplift their situation, ease pressures on limited natural resources or to wean them from some practices that maybe detrimental to them or their environment. Given the varying degrees of capacities among local communities, while some livelihood projects are being sustained, some still struggle to achieve an economy of scale. This is where GreenPact and its Nature Stimulus Project intend to engage as a green social enterprise and then hopefully add value to community efforts to achieve inclusive growth.
On profit, and just like with Newman’s Own, 100% means the amount left after deducting all normal business expenses including compensation, incentives, and benefits, capital build-up, travel, cost of goods, transportation, warehousing, marketing and advertising, supplies, occupancy costs, taxes, and others. A portion of the income will also be set aside for emergency responses in light of the company’s work on climate change. Indeed, Newman's Own and Generation Hope prove that sustainability and giving back 100% of net income to worthwhile causes are not mutually exclusive concepts. The challenge for GreenPact is to further demonstrate its viability in the field of biodiversity conservation and climate change work; to show that supporting community enterprises can stimulate not just inclusive economic growth but a more sustained, more meaningful, conservation work.
This is a journey we are committed to take. And we invite you come and join us.