FAST Forward: Building Sustainable Supply Chain Finance through Market Transparency

1. FAST Forward: BuildingSustainableSupplyChainFinancethroughMarketTransparency Jason Potts Finance Alliance for Sustainable Trade (FAST)

2. Outline • Context and Consultation • Mission, Objectives and Activities • Field Information Services • Market Information Services • Member Networking Service • Implementation • Strategic Questions

3. Sustainable Supply Chain Finance Opportunity Contract Based- Lending: Buyer (1) Places order with Producer Org and/.or provides quality assurance Lender (2) Provides credit based on order volume and value Producer (3) Delivers coffee to Buyer Buyer (4) Pays full value to lender Lender (5) Pays order value minus loan amount and interest to Producer Org Certifier • Certifier: • Sets, verifies and communicates good management practices • Facilitates access to market

4. FAST Strategic Planning Process • Consultation with Members • Draft Business Plan • Board Review and Restructuring • Validation and Vetting • Full Implementation

5. Strategic Planning Process Content Developments

6. Vision and Mission • Objective: To promote sustainable economic development by improving efficiency and transparency in financial markets for sustainable SMEs in emerging economies. • Vision: FAST is the global reference for data on sustainable SME finance and related markets. • Mission: The Finance Alliance for Sustainable Trade facilitates efficiency, transparency and stability in financial markets for sustainable SMEs by providing objective data while developing and promoting reporting and quality standards. All FAST activities under the new business plan contribute to building the evidence base related to investment in sustainable supply chains with a primary focus on sustainable SMEs in agricultural supply chains.

7. FAST Information Services • Field Information Services • Impact Data • SME Investment Opportunities Data • Field Info Capacity Building Servicres • Market Information Services • Sustainable Product Data • Financial Markets Data

8. Field Info: Shared Impact Data A data collection and management system for SME impact data. Built in partnership with IRIS. Facilitates collection and reporting of impact data directly from SMEs. Data comes from investors, financial institutions and SMEs Core deliverables: • Design and deployment of Shared Impact database • Maintenance and improvement of platform • Annual shared impact report • Customized benchmarking reports

9. Field Info: SME Investment Opportunity Data A data repository of SMEs seeking finance ranging from basic financial statistics, demand for finance and any user submitted ratings Data sourced directly from SMEs via Financial Fairs or from partner technical assistance agencies or other data collectors (eg. Cropster) Core deliverables: • Design and launch of SME Investment Opportunity database • Preparation of 400 quality new SME online profiles • Negotiation of data alliance with major supply chain initiatives covering more than 50% of sustainable SMEs

10. Field Info: Capacity Building Services A series of activities providing quality control and training for third parties to collect field level data for FAST Data sourced from third parties conducting FAST financial fairs, technical assistance agencies and SMEs directly. Core deliverables: • Training sessions for financial institutions, SMEs and technical assistance bodies • 12 FAST Certified Financial Fairs (organized by third parties) • Facilitation services for technical assistance fund • Financial literacy training tools • Impact Assessment Guidance

11. Field Info Information SErvices

12. Market Info: Product Market Data A data collection, reporting and analysis service on products certified as sustainable by globally recognized certification organizations Data sourced from standards bodies, companies, secondary research and SMEs directly Core deliverables: • Design and deployment of product market database • Annual global product markets review (The State of Sustainability Initiatives) • 13 national product reviews

13. Market info: Financial Market Data Data and reporting service on market conditions, performance and trends for sustainable supply chain finance Data sourced from financial service providers, other industry data houses and FAST other data services Core deliverables: • Design and implementation of financial markets data collection and reporting system • Sustainable supply chain finance market trends and performance annual report • Sustainable supply chain risk management quarterly newsletter • Risk profile research

14. Market Information Services

15. Member NETWORKING Activities FAST communications with members will be significantly strengthened with a focus on using communication to identify shared reporting and data indicators, data sharing tools but also to build consensus on quality standards as appropriate. Core deliverable • FAST lenders lab • Data sharing platform for members • Lenders meetings and forums • Special member communications projects including standards development discussions

16. Implementation: Fitting the Pieces together • Individual Field and Market Information Services will be designed and implemented as a single vision and infrastructure that ensure maximum synergies and efficiencies between the individual products.

17. Implementation Strategy

18. Fitting the Organizations Together • Big tent for SME Development Finance • Dialogue • Networking • Strategic Planning • Research • Membership: Impact investors and all stakeholders in impact investing and SE development • Impact Investment (SME and beyond) • Strategic Dialogue • Impact Standards • Membership: Impact Investors • Leadership group for smallholder agricultural finance • Strategic Dialogue • Standards and Best Practice • Membership: Social Lenders serving Ag Finance to Smallholders • Microfinance Market Information Hub • Market and performance data for microfinance sector • Standards for reporting • Membership: no membership structure • Sustainable SME Finance (Ag Focus) Market Information Hub • Market and performance data • Standards for reporting • Standards for matchmaking • Standards for best practice • Membership: Social Lenders, Impact Investors and Socially Oriented Financial Institutions

19. Implementation: FAST Membership Strategy • Current Membership 142 total • 16 “Full Member” Lenders • 13 NGO Associate Members • 113 Producer Associate Members • Board • 8 Full Member Lenders (75%); 4 Associate Members (25%)

20. New Membership Structure? • Proposal: To strategically bring in a broader membership base of financial institutions (investors, banks etc) • Challenge 1: current members cannot contribute significantly to operating costs • Challenge 2: limited number of social lenders limits the ability for continuity and growth. • Challenge 3: new entrants moving into market without sufficient guidance/leadership (Risk Factor)

21. Implementation: Executive and Staffing Strategy Data Collection Services

22. Thank You! Think Sustainably Act FAST www.fastinternational.org