Growth Is Proving Surprisingly Resilient in the Face of High Interest Rates and Geopolitical Risks, Says EIU Report

In its latest global economic outlook report, the Economist Intelligence Unit (EIU) "forecasts more fragmentation and regionalization in the world economy in 2024-28 as alliances tighten and competing blocs form." What is more, "The return of industrial policy, including sanctions and the provision of new incentives, will push firms to adopt more inefficient supply chains, stoke trade tensions in strategic sectors and make it difficult to compete across the global marketplace. These developments will drag on growth potential." The EIU expects "global real GDP will expand by 2.8% a year on average over the next five years—below the 3% of the 2010s, which was hardly a stellar decade for the global economy."

The UK-based organization adds that "In the near term, however, the global economy is showing resilience in the face of international conflict and higher interest rates. This mainly reflects the remarkable strength of the US economy, which is driven by strong household finances, a rising trend in manufacturing investment and a booming technology sector. Elsewhere, the picture is less dynamic but short of a downturn." Moreover, "Momentum in Europe will build gradually in 2024. Modest government stimulus in China is helping the economy to in the Middle East as the conflict in Gaza continues. Russia's invasion of Ukraine, now in its third year, shows no sign of resolution. Flash points in Asia, such as in relation to the South China Sea and Taiwan, will pose a persistent threat to the fragile stability that has developed in US-China relations. The diffusion of global power and uncertainty over the direction of US foreign policy underpins this rise in geopolitical risk."

Other key findings from the report include:

• 2.5% global real GDP growth in 2024 (compared with 2.4% previously), meaning growth will be unchanged rather than slowing from 2023. Growth is proving surprisingly resilient in the face of high interest rates and geopolitical risks.
• The change in global growth reflects another upward revision for US growth in 2024 to 2.2% (from 2% previously), upward revisions for several European economies that have pushed euro area growth to 1% (from 0.8%) and an upward revision for Brazil to 2.1% (from 1.8%).
• Reduction of expectations for future monetary policy loosening, removing one 25-basis-point cut from the loosening cycles of both the Federal Reserve (the US central bank) and the European Central Bank in 2024-25. In contrast, the EIU now expects the Bank of England (the UK central bank) to cut quicker than previously forecast, lowering its rate to 3.5% by end-2025 (compared with 4.25% previously).
• The US dollar effective exchange rate is now forecast to appreciate for a third consecutive year in 2024—the EIU previously expected a mild depreciation. This reflects a stronger depreciation in the yen's value than previously forecast and the fact that the EIU is no longer forecasting euro appreciation.

On the topic of how climate change and AI may threaten global convergence prospects, the report says:

The green transition and technological change will be among the major trends shaping global economic prospects over the next five years. In both cases, they seem set to diminish convergence prospects for developing economies. Poorer countries will be disproportionately affected by climate change and will struggle to secure financing to mitigate its impact. Although we are skeptical about the scale of productivity gains from artificial intelligence (AI), those improvements that do emerge will accrue mainly to developed economies; this will create challenges for countries aiming to move up the manufacturing and services value chains. We still expect some emerging markets to stand out, however, helped by being fairly insulated from geopolitical tensions and rising trade barriers. India is forecast to expand the fastest of any major economy in 2024-28, and Mexico will benefit from nearshoring trends.

Do you agree with the report's findings? How are you preparing your business for a rise in geopolitical risk?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Malaysian Electric Utilities Seek U.S. Partners to Help Decarbonize the Country's Energy Sector

As noted in previous posts in this Forum, I am optimistic about the commercial opportunities that U.S. companies that are looking to sell their services and products in Southeast Asia. Among the ten nations that comprise the Association of Southeast Asian Nations (ASEAN), I recommend that American business owners and corporate executives look closely commercial opportunities in ASEAN's six largest economies (data provided by the International Monetary Fund): Indonesia, Thailand, Singapore, Philippines, Vietnam, and Malaysia.

The Malaysia Country Commercial Guide, which is a useful resource produced by the International Trade Administration, an agency within the U.S. Department of Commerce, explains that "Malaysia is an upper middle-income economy with a population of over 34 million. The country's growing affluent middle class increasingly drives consumer and business demand for quality goods and services. U.S. products and brands are favorably viewed and enjoy a strong presence in many sectors, including technology, machinery, electronics, medical equipment, and franchising."

What is more, "U.S. exporters looking to expand their market presence in Malaysia can benefit from the country's developed infrastructure, an English-speaking business and consumer environment, a well-established legal framework, and the ability to repatriate capital and profits. Malaysia is generally considered an easy and cost-competitive market for doing business. The United States is Malaysia's third-largest trading partner, and U.S. exports of goods to Malaysia were valued at over $18 billion in 2022." The U.S. Department of State also points out that "Malaysia is the United States' 17th largest trading partner and the second-largest trading partner among the 10 ASEAN members, after Vietnam."

Considering my optimism about ASEAN's economic opportunities and interest in employing technologies to mitigate the consequences resulting from global warming, I attended the Malaysia Smart Grid Technologies Reverse Trade Mission (RTM) on May 1st, 2024 in Millbrae, Calif. The U.S. Trade and Development Agency (USTDA), which helps companies create U.S. jobs through the export of U.S. goods and services for priority infrastructure projects in emerging economies, sponsored this event. Delegates of the RTM included representatives of agencies within the Malaysian governments and executives from Malaysian energy utilities. Representatives from the USTDA and the U.S. Commercial Service were also in attendance at the event held just outside of San Francisco.

A delegate from the Tenaga Nasional Berhad (TNB) said the Malaysian multinational electricity company is the only electric utility company in Peninsular Malaysia and is the largest publicly listed power company in Southeast Asia. Serving over 10 million customers throughout Peninsular Malaysia (except Sarawak) and the East Malaysian state of Sabah, TNB's core activities are in the generation, transmission and distribution of electricity. The presentation also highlighted how renewables are expected to grow significantly, with Malaysia targeting 70 percent of its 2050 installed capacity. Advancements in storage technologies are making renewables more dispatchable.

While not part of the presentation, TNB's most recent sustainability report explains:

We have been making progress in rolling out the adoption of a Smart Grid as part of our Grid of the Future (GoTF) initiatives. GoTF aims to improve the grid flexibility with two-pronged objectives - to allow for better services to our customers and enable higher growth of Variable Renewable Energy (VRE) and Distributed Energy Resources (DER). TNB has achieved a Smart Grid Index (SGI) score of 71.4% in FY2022, which demonstrates significant improvement of 19.4% from 2019. Moving forward, under our Smart Utility 2025 Masterplan, we target to achieve a score of 85% by 2025. Through the establishment of this ambitious target, we aim to facilitate the integration of clean energy into our electricity grid and enable efficient management and utilization of resources. These endeavors will help drive the pace of our decarbonization efforts and renewable energy initiatives to achieve our net zero aspiration.

 

Source: www.tnb.com.my/sustainability

Attendees then heard a presentation by Sarawak Energy Berhad, which is state owned electric utility company of the State of Sarawak. Sarawak Energy's vision is to achieve sustainable growth and prosperity for Sarawak by meeting the region's need for reliable and renewable energy—providing electricity to 3 million Sarawakians in urban and rural areas. Furthermore, the utility aims to ensure all rural communities including the most remote and inaccessible upriver communities have access to constant electricity supply. Using micro-hydro, which is the small-scale harnessing of energy from falling water such as that from steep mountain rivers, and solar hybrids, Sarawak Energy has a goal to help more than 30,000 rural household achieve full electrification by 2025. Sarawak Energy is also making progress in becoming a regional power house as the utility exports power to the Indonesian province of West Kalimantan.

Source: www.sarawakenergy.com/about-us

According to the aforementioned country commercial guide, "The Malaysian government is seeking ways to grow its national grid to be a smart, automated, digitally-enabled grid. Malaysia is looking for solutions that ensure greater cost efficiency, reliability, and customer satisfaction than can be achieved with centralized grids. Market opportunities for U.S. companies exist for smart meters, grid technologies and systems, and transmission & distribution systems." I appreciate how this business briefing provided an opportunity for U.S. entities to meet with a delegation of decision-makers from Malaysia interested in learning more about U.S. smart grid technologies and best practices for cybersecurity, distribution networks, and storage solutions for the power sector.

What opportunities are you seeing in ASEAN's renewable energy sector?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Helping Policymakers and Stakeholders Understand Risk and Design Effective Policies for Urban Resilience

According to a report developed by Economist Impact and supported by the Tokio Marine Group, "The world is facing unprecedented challenges. Extreme weather events, from hurricanes and wildfires to flooding and heatwaves, are becoming more frequent and their effects more devastating." Furthermore, "Emerging risks like cyber-attacks loom larger as technology dependence deepens. Our cities are exposed to all of these risks and more. Lives and livelihoods depend on our ability to understand and mitigate the evolving threats to our urban centers."

The Resilient Cities Index highlights three phases to resilience. "Preparation and mitigation come first. Understanding the risks, how they are evolving and taking steps to minimize their impact is essential if cities are to avoid the worst. The second phase is response, necessitating swift reactions and timely assistance to save lives and diminish the impact when disasters occur. Last is recovery, emphasizing the need to learn from tragedies and rebuild stronger, better-equipped communities for future shocks and stresses."

Aiming to help policymakers and stakeholders understand risk and design effective policies for urban resilience, Economist Impact developed a benchmark of 25 cities. To gauge the resilience of these cities, the report's authors took measurements across four pillars: critical infrastructure, environment, socio-institutional and economic. This white paper combines index analysis with expert commentary to identify patterns, common strengths, deficits and best practices across index cities.

Key findings from the inaugural edition of the Resilient Cities Index include:

• Cities performed well in the critical infrastructure pillar of the index, but there are some weak points that require strategic focus. The cities with the highest scores were Dubai, Shanghai, New York and Singapore. These capital-rich market locations have greater opportunities to develop new infrastructure, compared with European cities constrained by decades- or centuries-old systems. Within this pillar, digital infrastructure and transportation were a drag on cities' resilience.
• Cities that use data and technology to create operational efficiencies and share information with their citizens—i.e., smart cities—are better at dealing with shocks. Patchy internet quality, which can impede access to digital services, pulled down the overall resilience score in the critical infrastructure pillar. Digital technologies and advanced data analytics can help to predict risks, optimize existing systems and keep the public informed. Greater digitalization comes with risks, especially to critical infrastructure, but most cities in the index have built safeguards against this.
• Most emerging economy cities lack adequate regulatory frameworks, strategies and incentives for futureproofing infrastructure. Only a few cities in the index achieved high scores for future-proofing, which involves ensuring infrastructure preparedness for shocks while managing current and future emissions. One way cities can future-proof is by incentivizing sustainable designs for buildings, such as installing green roofs, incorporating modularity and retrofitting for energy efficiency—a practice only found in high-income cities in the index.
• Efforts to achieve environmental resilience are led by innovative solutions. Cities are employing a variety of nature-based solutions to adapt to flooding and heat stress, from planting rooftop vegetation and mangrove forests (green infrastructure) to rehabilitating wetlands (blue infrastructure). Cities are also decarbonizing by adopting renewable energy and negative emission technologies, such as carbon capture, storage and removal. However, the scalability of these technologies is likely to be challenging for resource-constrained emerging market cities.
• Cities demonstrated poorer performance in the socio-institutional pillar, mostly due to income inequality and poor health and well-being metrics. Only nine cities have a single, comprehensive plan to support vulnerable groups. However, one bright spot is that cities are promoting a culture of readiness to act in the event of a disaster. The majority of cities scored highly on this or are working to improve their readiness.
• Cities had the lowest average scores in the economic pillar, dragging down some cities that performed well in other areas. The low penetration of financial safety nets hinders safeguards against threats and undermines a city's ability to recover from shocks. Another aspect of economic resilience is a city’s ability to incubate innovation, which can foster solutions to a range of problems, from congestion to water stress. Unfortunately, most cities scored poorly on the indicator for start-up ecosystems.

The report's conclusion points out that "A resilient city is not only prepared for shocks but has the ability to bounce back and thrive. Recognizing both existing and looming threats will help cities better understand their vulnerabilities and design targeted actions. However, building such cities requires stakeholders from government, businesses and communities, as well as individual city-dwellers, to engage in holistic resilience thinking at community and municipality levels."

Moreover, "While resilience needs to be tackled in myriad ways, a number of critical strategies have been identified in the course of this research and are summarized below."

• Empower the community to be active participants. This is contingent on the democratization of information. All city-dwellers should have equal access to government information, including what to do in an emergency. Some cities, like Singapore, do this very well, using digital channels to disseminate information to everyone simultaneously. Fostering a culture of readiness and the ability to manage hazards will require investment to train and educate people at governing and grassroots levels to be stewards of their city. Recognizing that information is key, municipalities could consider partnering with a digital platform to minimize misinformation and ensure the city moves in one direction, despite disruption.
• Social cohesion efforts need greater advancement across the board. Cities are nothing without the people who inhabit them. Greater attention to social cohesion will help to ensure cities are less fragmented, adaptive and better prepared for shocks. City governments should overlay resilience efforts with initiatives that aim to improve the lives of urban residents. This process should be driven by city leadership and engage civil society. The majority of cities in the index have some way to go to strengthen social cohesion through integration programs for society's most vulnerable.
• Early warning systems (EWS) are vital for safe cities but investment is needed to hit the 2027 target. National governments and municipality leaders will have to collaborate to ensure universal early warning systems coverage by 2027. There are two challenges that need to be met. First, capital is needed to bridge the investment gap for technologies with a greater push for the development and adoption of frontier and horizon tech–from drones to AI. Second, governments need to facilitate the necessary legislation to connect these EWS to emergency and response plans to ensure there are protocols and resources in place to deal with climate extremes and hazards. Community acceptance and responsiveness to early warnings are essential in the effectiveness of EWS. This can be achieved through systematic training and education and awareness programs.

What do you think of the report's findings and conclusions? Do you have additional recommendations on how policymakers and stakeholders understand risk and design effective policies for urban resilience?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Report Calls for Urgent Support to Developing Countries to Attract Massive Investment in Clean Energy

In its 2023 edition of the World Investment Report, the United Nations Conference on Trade and Development (UNCTAD)  called for urgent support to developing countries to enable them to attract significantly more investment for their transition to clean energy. Through this report, the Swiss-based agency of the United Nations, which promotes inclusive and sustainable development through trade, investment, finance, and technology, shows that much of the growth in international investment in renewable energy, which has nearly tripled since the adoption of the Paris Agreement in 2015, has been concentrated in developed countries.

In writing the report's Preface, António Guterres, Secretary-General of the United Nations, explains that the report "has an important role in the biggest battle of our lifetime: keeping temperature increases below the agreed limit of 1.5°C. By monitoring global, regional and national investment trends and developments, this report supports policymakers by showing where investment is on track, and where more is needed. The report's recommendations are an important guide to boosting climate finance and investment in developing countries – one of the most important factors in combating the climate crisis."

The report presents three key messages:

Global FDI retreats, but new project announcements show bright spots

"Global foreign direct investment (FDI) declined by 12 percent in 2022, to $1.3 trillion. The decline was mainly a result of lower volumes of financial flows and transactions in developed countries. Real investment trends were more positive, with growth in new investment project announcements in most regions and sectors. FDI in developing countries increased marginally, although growth was concentrated in a few large emerging economies. Inflows in many smaller developing countries were stagnant, and FDI to the least developed countries (LDCs) declined."

The report also notes that "Industry trends showed increasing project numbers in infrastructure and industries that face supply chain restructuring pressures, including the electronics, automotive and machinery industries. Three of the five largest investment projects were announced in semiconductors, in response to global chip shortages. Investment in digital economy sectors slowed after the boom in 2020 and 2021."

In addition, "Investment project numbers in energy remained stable, allaying, for now, fears of a reversal of the downward trend in fossil fuel investment due to the energy crisis. Oil majors are gradually selling fossil fuel assets to private equity firms and smaller operators with lower disclosure requirements, which calls for new dealmaking models to ensure responsible asset management."

The SDG investment gap widens despite the growth of sustainable finance

"International investment in sectors relevant for the Sustainable Development Goals (SDGs) in developing countries increased in 2022. Infrastructure, energy, water and sanitation, agrifood systems, health and education all saw increased project numbers. However, compared to 2015 when the SDGs were adopted, progress is modest."

Moreover, "A review of investment needs at the midpoint of the 2030 Agenda for Sustainable Development shows that the investment gap across all SDG sectors has increased from $2.5 trillion in 2015 to more than $4 trillion per year today. The largest gaps are in energy, water and transport infrastructure. The increase is the result of both underinvestment and additional needs."

The report also explains that "The growing SDG investment gap in developing countries contrasts with positive sustainability trends in global capital markets. The value of the sustainable finance market reached $5.8 trillion in 2022. Sustainable funds had positive net inflows while traditional funds experienced net outflows. Sustainable bond issuance also continues; it has grown five-fold over the past five years. Key priorities for the market are increasing exposure to developing countries and addressing greenwashing concerns."

Developing countries need vastly more support to attract energy investment

The report points out that "International investment in renewable energy has nearly tripled since the adoption of the Paris Agreement in 2015. However, much of this growth has been concentrated in developed countries." What is more, "More than 30 developing countries have not yet registered a single utility-sized international investment project in renewables. The cost of capital is a key barrier for energy investment in developing countries. Bringing in international investors in partnership with the public sector and multilateral financial institutions significantly reduces the cost of capital."

The report also importantly says "Most developing countries have set targets for the energy transition in nationally determined contributions. Only about one third of them have translated those targets into investment requirements, and few have developed the asset specifications that are needed to design targeted promotion mechanisms and to market bankable projects. As a result, many developing countries use generic fiscal and financial incentive mechanisms that are less effective for the promotion of energy transition investment."

Lastly on the topic of developing countries needing more support to attract energy investments, I strongly support UNCTAD's assertion that "De-risking support to lower the cost of capital for energy transition investment in developing countries must be vastly expanded. More technical assistance should be available for investment planning and project preparation. International investment agreements need accelerated reform to expand policy space for climate action and to strengthen investment promotion and facilitation provisions." Through this report, the Swiss-based agency of the United Nations, which promotes inclusive and sustainable development through trade, investment, finance, and technology, puts forward a Global Action Compac for Investment in Sustainable Energy for All with recommendations for national and international investment policies, global and regional partnerships, financing mechanisms and capital market involvement.

Writing the Forward, Rebeca Grynspan, Secretary-General of UNCTAD, insightfully notes that "Armed with the data and insights this report offers, it is imperative that stakeholders approach investment with a strategic mindset. The complexities and disparities highlighted demand astute decision-making, as the road ahead is fraught with challenges. Together we must navigate this landscape with resolve and intelligence, shaping a more sustainable and equitable world for generations to come."

What are your recommendations for developing countries can attract investment to bolster their clean energy sector?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Digitally Enabled Climate Finance Can Help LMICs Reduce Emissions and Adapt to the Impacts of Climate Change

Having engaged in the climate finance and technology sectors over the past several years, I agree with the GSMA that "Climate finance has increasingly taken center stage in debates about the future of climate action. For low- and middle-income countries (LMICs) to reduce emissions, significant financial support is needed to transition to low-carbon economies and adapt to the impacts of climate change." The UK-based organization notes in a new report that provides an overview of how mobile and digital technology can be used to facilitate and accelerate climate finance, "While disruptive technologies offer great promise, they require an enabling ecosystem and robust financing to be successful."

The report's Executive Summary importantly points out: "The use of mobile and digital technologies in delivering climate finance to underserved communities shows excellent promise. Emerging solutions moving climate finance forward include frontier technologies, such as the Internet of Things (IoT) and blockchain, as well as the voluntary carbon market (VCM).

The report's other main conclusions include:

Defining climate finance: "The research highlighted that the public and private sectors define climate finance differently. This has an impact on the level, quality and priority of investment in climate change. Understanding the various definitions of climate finance is also key to creating an inclusive ecosystem in which all actors can execute their mandates, including the mobile and digital technology community. The knowledge and technical expertise required for climate finance can be enhanced based on agreed definitions, and will help to develop tailored products, services and capacity building tools."

Building knowledge and technical expertise in digitally enabled climate finance: "Climate finance is a new, complex and contested field. Digitally enabled climate finance has added a layer of complexity because it incorporates technology in both climate action and climate financing. As a result, there is a gap in knowledge and technical expertise, which are key to developing solutions and accelerating climate finance for those most impacted by climate change."

Developing digital infrastructure and ecosystems in LMICs: "The deployment and delivery of climate finance via mobile and digital technologies depends on strong digital infrastructure. However, there are numerous barriers to the development of this infrastructure."

Improving access to quality data: "Digital technology needs to be integrated in climate finance to ensure quality data. However, in LMICs, there are data-related barriers that make it difficult to attract investment and compete for access to climate financing."

Reaching underserved populations: "Underserved groups in LMICs, especially women, are the least likely to access and use mobile technology. This is due to a variety of reasons, including the affordability of handsets and data, a lack of digital skills and social norms. Since these groups tend to be the most vulnerable to the impacts of climate change, solutions need to be tailored specifically to their needs and access to technology."

The development of carbon markets: "[T]he adoption of Article 6 and Article 6.4 of the Paris Agreement, which outline the development of a VCM, has sparked interest in this innovative climate financing mechanism. However, there are persistent implementation challenges, largely due to complex and immature markets."

I appreciate how the report showcases models and best practices for how mobile and digital technologies can ensure vital funds reach the most vulnerable people and communities. In doing so, it demonstrates the opportunities for transformative technologies to help counter the climate crisis. While climate finance is relatively new, research presented in the report "shows that mobile and digital technology are uniquely positioned to provide tools that catalyze and strengthen how it is delivered." The report also "offers a preliminary assessment of digitally enabled climate finance to guide public and private sector actors, including financial institutions and mobile network operators (MNOs). In doing so, it seeks to support the delivery of innovative solutions and partnerships that serve communities most affected by climate change."

The GSMA also produced a webinar that discussed the future of climate action and the role of mobile and digital technology in delivering climate finance in LMICs.

If finance is at the heart of tackling the climate change crisis, then what are your recommendations of how to use mobile and digital technologies to ensure vital funds reach the most vulnerable people and communities?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Report Identifies Six Decarbonizing Technologies That Will Help Asia's Path to a Greener Future

"Asia, home to vast engines of economic growth, is at the center of the climate debate," says a report written by Economist Impact and sponsored by Eastspring Investment, which is a Singapore-based asset management business of Prudential plc. The report adds that "In the past two decades, global carbon emissions from fossil fuel combustion have risen by 45%, primarily driven by Asia, for which this figure stood at 135%. The region's ongoing dependence on coal has driven its per-head carbon emissions to equal that of the global average. Asia's carbon emissions are likely to rise by 16% over the next decade.

"Meanwhile, the effects of climate change are becoming more pronounced in parts of the region. In the past year, unprecedented floods in Pakistan wiped out a significant share of its crops; India recorded its highest-ever temperatures, with meteorologists sounding the alarm for more to come this year; and a severe heatwave in China exacerbated a drought that impacted food production and the power supply."

The report importantly points out that Asia "is facing significant human and economic costs arising from intense greenhouse gas (GHG) emissions. Under pressure to set ambitious net zero targets and reduce emissions, technologies that enhance efficiencies and help industries decarbonize will be crucial pieces of the climate puzzle in Asia."

The findings presented in Asia's path to a greener future: Six technologies with decarbonizing potential are based on an extensive literature review, an interview program, and analysis conducted between October 2022 and March 2023. The report's findings, which are listed below, are intended to act as a springboard for discussions to support the development of technologies that have decarbonizing potential and identify the roadblocks to their progress.

• Technologies that are driving significant gains in Europe or the Americas need to be adapted to the Asian market. For example, the majority of alternative protein products are tailored to suit Western preferences and are prohibitively costly for the more price-sensitive Asian market. Alternative proteins would likely see broader adoption and create more impact if adapted to specific market preferences and price conditions.
• Decarbonization efforts should aim to address emissions and waste across the entire lifecycle of production and use. Most of the hydrogen currently consumed is grey, which is produced from natural gas. The decarbonization potential of hydrogen-powered vehicles will significantly increase with the use of renewable energy to produce hydrogen fuel. Likewise, using food waste for manufacturing textiles moves away from the current highly polluting linear model of production to a circular economy.
• Developing supporting infrastructure can enhance technology development. The growth of technologies such as hydrogen vehicles and battery recycling is currently limited due to insufficient supporting infrastructure. Spurring hydrogen vehicle uptake depends on installing a network of refueling stations and green hydrogen production plants. To diminish end-of-life impacts of batteries, well-designed and managed disposable and collection mechanisms are necessary. Implementing policies that support the development of necessary infrastructure will ensure a conducive environment for the growth and expansion of these technologies.
• Addressing poor consumer sentiment will be key in scaling up technologies. Negative perceptions impede new technology adoption. In the case of alternative proteins, consumers can be deterred by concerns about taste and nutritional value. With hydrogen vehicles, safety is a key issue, while recycled batteries can be perceived as lower quality. Investigations into safety incidents can help curb concerns. In other cases, public awareness and better communication by businesses and governments can go a long way to address common misperceptions.
• Recycling and reuse can present opportunities to overcome supply chain disruptions owing to changing global dynamics. The prices of critical minerals are on the rise because of growth in demand and fluctuations in supply. Recycling products, such as electric vehicle (EV) batteries, could ease the dependence on expensive raw materials, improve affordability and facilitate the transition away from a linear take-make-waste economy.
• Policy support in the form of subsidies and financial incentives can reduce technology costs. At present, many new technologies are expensive, which is hindering their adoption and development. Government support through subsidies, grants and other financial incentives can help reduce production costs and enable economies of scale. Lower production costs could translate into lower purchase prices for end consumers and foster greater adoption.
• Greater public and private investments are needed. While climate technology is attracting investment, more financial support is needed to scale-up the next wave of innovation. Funding is also needed to help install essential infrastructure to support the uptake of climate technologies such as hydrogen production plants and EV charging stations.

The six technologies with decarbonizing potential include are segmented into three verticals: agriculture (alternative proteins and precision farming), transport (EV batteries and hydrogen vehicles), and waste (alternative fabrics and battery recycling). These technologies "show considerable potential for reducing Asia's carbon footprint, as well as improving sustainability and security in the region." However, "each technology has its own set of unique challenges."

I support the report's assertion "Technology is a critical enabler of decarbonization efforts and, as it continues to advance, it brings greater scope to address emissions in hard-to-abate sectors." The report adds that "innovation plays a crucial role in improving energy efficiency and reducing waste, but challenges remain to the broader uptake of each technology. Investment in research, development and deployment of nascent technologies will be essential to achieving our climate goals."

What technologies do you think will have the biggest impact on Asia's path to a greener future?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

How a Company Can Build Resiliency in Uncertain Times

"Amid compounding challenges across the Americas, it's becoming abundantly clear that an actively engaged board is paramount to success," EY notes in its report that presents priorities a company's board of directors should consider in 2023 to build resiliency. The multinational consultancy adds: "Companies are navigating an unprecedented mix of challenges, from the ongoing pandemic to escalating cybersecurity threats, climate change impacts, evolving regulatory pressures and more."

What is more, "By overseeing strategies to navigate this complex business environment and provide guidance on transformational investments, boards play a crucial role in helping management teams explore different options, challenge assumptions and thrive under uncertain conditions. This resiliency — the ability to anticipate, prepare for, respond and adapt to a changing environment — is necessary in an increasingly complex world."

Based on the survey results and EY's direct engagement with hundreds of key stakeholders (including boards, individual directors, C-suite executives and leading institutional investors), the report has identified the following five board priorities for 2023:

Priority 1: Navigating uniquely challenging economic conditions

• How is the company planning for a range of economic scenarios, including those in which inflation and wage growth stay elevated for longer?
• How often does the board ask leadership: "What if we're wrong? What happens if a low-probability, high-impact scenario emerges? What would we do differently if that is the case?"
• What is the company doing to stress-test its balance sheet and develop a crisis playbook that gives company leaders comfort in their ability to manage even the worst-case scenario?
• How is the company building a resilient and sustainable pricing strategy? How is scenario-planning supporting that strategy?
• How is the company evaluating labor costs and decisions in the context of the company's longer-term talent strategy?

Priority 2: Rethinking capital strategy

• How is the company investing to motivate risk and create opportunity despite multiple headwinds?
• How is the company's investment strategy changing in key areas such as digital and technology, people and skills, innovation and R&D, and sustainability? How are the board committees coordinating their oversight of these matters?
• How is the company considering a variety of transactions (e.g., M&A , divestment, new joint ventures or strategic alliances to achieve its strategic goals? Are those options explored at the board level, or is the board presented only with management's decision?
• What is the company's approach to capital allocation (i.e., is it data-driven, consistent and enterprise-wide)? Does it focus on qualitative and quantitative metrics?
• How is the company's investor engagement program keeping key shareholders informed of the company's long-term value creation strategies and the board's related expertise? Do disclosures describing the board's composition demonstrate that, individually and collectively, the board is fit for purpose?

Priority 3: Enabling innovation and technology transformation

• How is the company's innovation budget and program contributing to the creation of an informed strategic plan leveraging emerging technology?
• How is the board thinking about and redefining competitors or industry boundaries? Who might now be a competitor that wasn't previously?
• How are responses to changing stakeholder demands, expectations and operational disruptions leading management teams to innovate?
• How are investments in innovation tracked and reported to the board? Is the board engaged in innovation discussions as part of the strategy-setting process?
• How is the board building a foundational understanding of evolving technologies such as the metaverse, including learning through experience?

Priority 4: Championing a future-focused talent agenda

• How is the board gaining insight into employee engagement, performance, operating statistics such as retention and turnover, and experience across different segments (seniority level, geography, function or business, etc.)?
• How is the company providing support for career path and progression, including mentoring, learning and development programs, and updating organizational design to open opportunities for advancement? Are upskilling and retention central to the company's talent strategy, including around key are as such as technology and sustainability?
• How is the company ensuring pay equity? How is it also creating a human- centered rewards policy encompassing compensation, wellbeing, flexible benefits, time off and more?
• How is the company enabling productivity and culture alignment in a hybrid working environment?
• Has the company leveraged a third-party assessment to validate that the company's policies and practices foster diversity and inclusion, and how can they be more effective? How is the company's DEI commitment integrated into the ways it serves its customers, communities and the market?

Priority 5: Overseeing cybersecurity and data privacy

• Have appropriate and meaningful cyber metrics been identified and provided to the board on a regular basis and given a monetary value?
  
• What information has management provided to help the board assess which critical business assets and partners, including third parties and suppliers, are most vulnerable to cyber attacks?
• How does management evaluate and categorize identified cyber and data privacy incidents and determine which ones to escalate to the board?
• Has the board participated with management in one of its cyber breach simulations in the last year? How rigorous was the resting?
• Has the company leveraged a third-party assessment to validate that the company's cyber risk management program is meeting its objectives? If so, is the board having direct dialogue with the third party related to the scope of work and findings?

The report also presents the following other priorities on the board agenda:

• What systems and processes are in place to monitor international and domestic legislative and regulatory developments and keep the board informed as appropriate?
• How is the company ensuring visibility across global supply chains and considering alternative suppliers to improve resilience to shortages or price volatility? Is it evaluating supplier relationships for potential geopolitical complications and exploring alternative supplier networks attuned to the new geostrategic environment?
• Does the company view climate initiatives as a means of protecting and creating more value for the business? How is it exploring opportunities to transform its business portfolios while reducing emissions?
• How is company engaging and supporting suppliers to influence emissions reduction through their supply chains? Has the company considered a strategic partnership or joint venture to help achieve its climate agenda?
• How well do management and the board understand how geopolitical developments affect current and future strategy? Is scenario planning being used to systematically explore multiple plausible future and their potential business implications?

I concur with EY's concluding paragraph that "[i]n this new era of permanent uncertainty and volatility, success will be based on resiliency and sustainability, including the ability to sustain shocks, self-disrupt, and contribute to the solution of societal and environmental challenges. To meet the challenges ahead, boards will need to strengthen their effectiveness through continual assessment and improvement."

What are your recommendations for how a company can build resiliency in these uncertain times?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

A Toolkit for Startups in the Utilities Sector Seeking to Partner With the Public Sector

"Cities in low-and middle-income countries are home to one billion people lacking access to affordable, reliable, safe, and sustainable utility services," Max Cuvellier, GSMA's Head of Mobile for Development, writes in the Forward of a toolkit that was created for startups in the utilities sector that are seeking to partner with the public sector. He adds: "This urban service gap is being exacerbated by rapid urbanization, climate change and widening inequalities posing complex challenges to city authorities, municipalities, and utility service providers."

In its press release announcing the publication of the toolkit, the GSMA, a UK-based organization that represents the interests of mobile operators worldwide, notes: "Partnerships between start-ups and the public sector have emerged as an innovative and impactful way to address critical gaps in essential urban services – particularly when it comes to reaching low-income urban populations in informal settlements. They have the potential to combine the technology, innovative financing, and agility of start-up ventures with the public sector’s scale, service mandate, and resources."

The GSMA's announcement further says: "Over the last decade, through the GSMA Innovation Fund, we have supported more than 100 start-ups and SMEs working across LMICs. In that time, we have observed how central partnerships are to startups' scaling journeys and wider social impact. We have also seen how partnership formation between stakeholders with different organizational cultures, time horizons, and strategic priorities can pose challenges. Meanwhile, there has been little research and few resources tailored towards start-ups and early-stage private sector innovators pursuing partnerships with the public sector."

This toolkit therefore aims to:

1. Highlight the role of start-up-public sector collaboration in the context of the many challenges facing cities in LMICs;
2. To provide a conceptual framework of how to think through, frame, and define startup-public sector partnerships;
3. To offer practical tips and tools to startups navigating these complex partnerships; and
4. To highlight additional resources that might be relevant to those aiming to catalyze startup public sector collaboration.

The toolkit presents the following conclusions:

• Innovation: Digital solutions have demonstrated their value for improving urban services in LMICs. However, more innovation is needed to develop business models that can be deployed on a wide scale and account for the financial constraints of utilities and municipalities, as well the needs of low-income customers.
• Urbanization and climate change: Though the startup-public sector partnership landscape for improved urban utility services is still nascent, trends such as rapid urbanization, urbanization without structural formation, and climate change will mean that municipalities and public utilities will have to collaborate with startups and private sector innovators to close the urban service divide. While there has been more attention placed on the opportunities related to startup-public sector partnerships for urban utility services, it is also clear that there are many barriers to such partnership models, particularly when it comes to taking such partnership models to scale.
• Pioneers and challenges: Examples in countries that have pioneered these partnerships such as Kenya, India, and Bangladesh highlight that start-up-public sector partnerships can support cities in making urban utility service delivery more affordable, reliable, safe, and sustainable. Despite these successes, it is important for startups to be aware of the challenges and complexities associated with public sector collaboration, and better assess where synergies with the public sector lie and how their service can support the public sector in meeting its objectives.
• Collaboration: This toolkit sought to highlight the role of startup-public sector collaboration in the context of many challenges facing cities in LMICs (Section 1), provide a conceptual framework of how to think through, frame, and define startup-public sector partnerships (Section 2), offer practical tips and tools to start-ups navigating these complex partnerships (Section 3), and highlight additional resources that might be relevant to those aiming to catalyze startup-public sector collaboration (Section 4). Given how nascent many partnerships and the wider start-up public sector ecosystem are, it will be critical to continue to conduct research on the developmental, commercial, and social impact of these innovative partnerships, and use case studies to generate granular insights.
• Drivers for change: Trends will continue to drive startup-public sector partnerships for improved urban utility service provision. These include increasing devolution and public sector programs that encourage and incentivize startup participation in urban service delivery, the increased relevance and maturity of circular economy use cases, increased adoption and availability of frontier technologies and digital payments, as well as increased availability of funders and funding models to support multi-stakeholder partnerships.
• Digital Utilities Partnership Hub: The GSMA Digital Utilities program convenes startups, relevant public sector organizations such as state-owned utilities, and other relevant corporates such as MNOs to catalyze innovative partnerships and collaboration for urban utility service provision. Alongside this toolkit, the GSMA Digital Utilities program is launching the Digital Utilities Partnership Hub. The hub is GSMA's comprehensive source of information on the role of digital solutions and innovative partnerships for improved urban service delivery, highlighting key insights and case studies from our work with public and private sector stakeholders over the last decade.
• Support: The GSMA Digital Utilities program is committed to supporting startups and their public sector partners aiming to form, sustain, and scale partnerships for improved urban utility service delivery. To achieve GSMA's objectives, the program engages in:
• De-risking and catalyzing innovative urban utility services: Providing grants to private sector innovators to test and demonstrate the role of digital urban service solutions;
• Research and insights: Generate rigorous evidence on innovative solutions to essential service provision by gathering insights from Innovation Fund grantees and conducting research with partner organizations with deep expertise in utility service provision; Partnership facilitation and convening of key ecosystem stakeholders: Drive replication and scale through convenings and leveraging our own networks as well as those of key partners who work to enable similar solutions; and
• Technical advice to MNOs, municipalities, and utility service providers: Provide advice on the role of digital innovation for improved utility service provision and insights on how to achieve multi-stakeholder partnerships.
• Enabling Forums: GSMA's market engagement team is looking forward to convening public sector stakeholders and startups for our next digital urban utility forums in Bangladesh and Kenya in Q4, and GSMA's program is looking forward to leveraging their strategic partnerships with key enablers and funders such as Imagine H2O Asia, the International Water Association, GOGLA, the World Bank, the Asian Development Bank, the World Resources Institute and other partners to continue to drive public-private collaboration to close the urban service divide.

Do you see value in this toolkit for startups in the utilities sector? What recommendations do you have for how startups and the public sector can partner?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Indonesia's Opportunity to Leverage Digital Assets and Wireless Technology Infrastructure to Address the Climate Emergency

If there is any chance of meeting the goal set forth in the Paris Climate Accords, an international treaty on climate change that was signed in 2015 that aims to keep the rise in mean global temperature to well below 2 °C (3.6 °F) above pre-industrial levels, various industries will need to make efforts to employ climate technology help achieve this ambitious goal to substantially reduce the effects of climate change. Having both extensive experience working in Indonesia and within the mobile industry worldwide, a report by the GSMA caught my attention that explores the potential for mobile-enabled technology solutions to enhance Indonesia's climate mitigation and adaptation efforts.

Funded by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), the report notes, "Indonesia faces a unique set of climate change challenges, from extreme flooding to extended drought, changes in rainfall patterns and temperature and sea level rise." Moreover, "These risks are intensified by a dense population of 270 million people living in hazard-prone areas, and approximately 60 percent living in low-lying coastal cities. Indonesia is the world's eighth biggest emitter of greenhouse gases (GHGs). Forestry and other land use practices, energy and waste are key contributors."

The GSMA, a UK-based organization that represents the interests of mobile operators worldwide, explains that its report "presents an overview of the main climate challenges facing the country and examines the potential role of mobile-enabled technology in unlocking novel and innovative responses to climate change. All this centers around three focus areas for climate action in Indonesia: energy, waste and natural resource management."

What is more, "To create a clear picture of the distribution of climate technology in Indonesia, including where investment is primarily focused, the Mobile Innovation Hub Indonesia team reviewed publicly available literature and compiled a list of 48 examples of technology-enabled climate solutions currently deployed, piloted or in the proof-of-concept stage in Indonesia’s energy, waste and natural resource management sectors." The report also points out that "The highest concentration of climate technology was found in the energy and waste sectors, with just under half of climate solutions relating to waste. Technologies for sorting and recycling in the waste sector, as well as energy management and natural resource management are some of the most prevalent solutions."

"Interviews with stakeholders, including MNOs, mobile infrastructure organizations, government officials and ministries, revealed technical, political and behavioral barriers that are limiting the uptake of mobile-enabled solutions for climate mitigation and adaptation."

Three key barriers that is slowing uptake of mobile-enabled solutions in Indonesia include:

Technical barriers: The availability of mobile and digital infrastructure and access to affordable and connected devices. Although robust government approaches are making strong headway, there are still regional and remote island locations without sufficient connectivity. When it comes to implementing climate technologies these are important considerations.

Political barriers: The political, social and ecological decisions and actions affecting climate change decision-making or uptake of mobile-enabled technologies.

• Collaborative environment: Limited collaboration between governments, the private sector and communities
• Data sharing and management: Lack of data integration and reliance on manual data collection processes
• Policy and regulation: Lack of policy incentives and weak regulations that hinder industry
• Investor appetite: Investments in Indonesia focus on technology in general rather than climate technology specifically
• Access to capital: Weak appetite for investment has left innovators with low access to capital
• Talent: Limited access to talent to develop, roll out and monitor mobile-enabled technology solutions

Behavioral barriers: The individual and collective assumptions, beliefs, values and worldviews on climate change responses:

• Unclear value propositions: Inability to demonstrate the value proposition to end users, coupled with cultural barriers
• Digital literacy: A barrier for end users that lead to suboptimal use or the need to embed manual back-up methods when rolling out solutions

To address these barriers, the GSMA recommends an ecosystem approach in which mobile-enabled solutions would provide a clear path to achieve Indonesia's climate goals. This would include:

1. Investing in mobile-enabled connectivity and digital and climate literacy to reach the most rural areas and offer innovative climate technologies.
2. Building trust between stakeholders operating in the same ecosystem, creating forums to share lessons, building on successful innovations and developing science-based narratives to strengthen coordination.
3. Building the capacity of the public sector and communities to implement or use mobile-enabled climate technology to increase uptake.
4. Using a human-centered design (HCD) approach to ensure climate technology is relevant and the value proposition is clear to end users.

I appreciate how this report explores the potential for mobile-enabled technology solutions to enhance climate mitigation and adaptation efforts in Indonesia. It also presents a useful overview of the main climate challenges facing Indonesia and examines the potential role of mobile-enabled technology in unlocking novel and innovative responses to climate change.

What are you recommendations for how emerging markets like Indonesia can leverage their digital assets and wireless technology infrastructure to address the climate emergency?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Report Evaluates Gaps in Early Warning Systems for Climate-Related Hazards in the US

"As climate-related weather events become a greater risk across the globe and in the United States," a report produced by the GSM Association (GSMA) explains that "innovative and inclusive early warning systems (EWS) are critical to mitigate these risks and strengthen preparedness for climate disasters." Moreover, "The frequency and impact of climate-related events have escalated in the US in recent years, negatively impacting communities and resulting in loss of life, property and livelihoods."

Funded by the UK's Foreign, Commonwealth and Development Office, GSMA's report evaluates the gaps in EWS for climate-related hazards in the US, and identifies examples of mobile and digital interventions used at the community level in low- and middle-income countries (LMICs) that could help underserved and vulnerable groups become more resilient to climate-related disasters. The report also provides specific recommendations for closing identified gaps to strengthen EWS in the US.

The report's key findings include:

• Climate-related hazards are on the rise in the US
• Socially vulnerable groups are the most affected by climate-related risks and disasters
• Early warning systems at the community level are not as robust as national systems
• There are opportunities to improve how emergency warnings are issued and disseminated
• Innovative community-based EWS in low- and middle-income countries offer lessons for the US

The GSMA proposes the following recommendations to help develop inclusive climate resilience strategies:

Co-design EWS with communities to strengthen communication, dissemination and response capability. "The current approach in the US aims to do this, but is often poorly implemented. Bringing American community organizations and municipalities together to develop new and/or modified EWS delivery models for Integrated Public Alert and Warning System (IPAWS) message initiation, or transfer to another system, will help develop localized models and strengthen community trust."

Investigate opportunities to leverage multi-channel EWS communication to reach a wider group of users and improve users' responses to messages. "In the US, message recipients are more likely to act if they receive a warning multiple times from different platforms. Message solutions like CHANTER could be used in combination with existing systems to amplify messages and make them more relevant, resulting in more specific messages being delivered to recipients' phones. When local communities are stakeholders and involved in managing such solutions, messages sent through the community-based channel would most likely be considered trustworthy and, therefore, prioritized."

Strengthen multi-language EWS messaging. "Leverage low-cost systems to rebroadcast messages in multiple languages. Local governments may also use other systems to auto-translate messaging for minority languages in coordination with user representatives from these communities. There is also an opportunity to pilot AI-powered auto-translate systems, for example, talking books to reach users who are not literate."

Engage partners in educating customers about wireless emergency alert (WEA) and local opt-in alert and warning systems. "Local communities can partner with local wireless operators to provide information to consumers on the benefits of WEA and local opt-in systems. This could be implemented as a corporate social responsibility initiative, alongside civil society groups and county emergency offices, hosting targeted workshops and advocacy campaigns that highlight the importance of residents signing up for warning messages and gathering feedback from residents on their preferences and potential challenges related to receiving disaster warnings."

According to the National Oceanic and Atmospheric Administration's National Centers for Environmental Information, there were 142 weather- and climate-related disasters costing at least $1 billion each have been recorded in the US in the past 10 years. The most common and costly events were hurricanes, cyclones, and wildfires. The estimated cumulative cost of these events between 2012 and 2022 was more than $1 trillion.

The GSMA importantly notes that "Planning for climate change requires that government institutions and local communities adapt and prepare systems and strategies to mitigate the risks of climate-related disasters and build their resilience and capacity to respond." This report presents some valuable insights into how to create innovative and inclusive climate resilience strategies by closing gaps to strengthen early warning systems in the US.

Do you agree with the report's recommendations?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Exploring How Digital Technologies Are Used in Natural Resource Management

"In the coming years, as the environmental crisis becomes even more complex and far-reaching, digital technology will play an increasingly critical role in protecting livelihoods and the natural resources on which they depend," according to a report published by the GSMA. Through the GSMA CleanTech program, the UK-based organization conducted research to explore the "digital dividends" of various types of technology on natural resource management in low- and middle-income countries. Through desk research and stakeholder interviews, they captured and documented global trends and examples of best practice; identified the common incentives, bottlenecks and benefits natural resource management (NRM) stakeholders encounter when deploying digital technology; and highlighted opportunities for the GSMA and its members to enhance the reach, scope and effectiveness of NRM programs.

The report explains that "[n]atural resource management (NRM) refers to the sustainable use and management of the planet's natural resources, including forests, watersheds, oceans, air and a diversity of plant and animal species." Furthermore, "These and other resources work together to produce the benefits and services on which human existence depends, such as the provision of food, medicine and timber, the regulation of our climate, the improvement of our water and air quality, and protection from natural hazards."

Below are the report's key findings:

• Natural resources, livelihoods and poverty are interlinked. "The areas of the world that will be most affected by global changes in climate, biodiversity and ecosystem functions are home to many of the world's poorest communities. This, combined with limited access to and rights over natural resources, is a major contributing factor to poverty, particularly in rural areas. A lack of livelihood opportunities can put unsustainable pressure on local ecosystems by eroding community support for protected areas, instigating unsustainable changes in land use, or incentivizing participation in illegal logging and poaching activities. Conversely, sound NRM practices can have a positive impact on livelihood creation, reward communities for the ecosystem services they provide and drive sustainable agricultural, fishing and land use practices."
• You can't manage what you don't measure - and analyze. GSMA's "review of 131 NRM projects in LMICs shows that digital technologies are transforming the frequency, reliability and transparency of data collection activities, and improving organizational capacity for data visualization, analytics and evidence-based decision making. Nearly 100 of the NRM projects leverage data collected through satellites, drones or connected devices, and one in five uses artificial intelligence to discover, explore and derive insights from datasets. NRM organizations are highly motivated to work with mobile network operators (MNOs) and other technology organizations to find low-cost connectivity solutions that enable them to transmit data from remote or protected areas."
• Digital technologies can incentivize community participation in NRM activities and influence the way people perceive, think about and engage with nature. "There is growing recognition that poverty is more than a lack of material necessities and income; it also includes fewer rights and capabilities and less voice and influence over decision making. Although current approaches to NRM often fail to consider the needs and rights of local communities, digital technology—especially mobile—offers new ways to facilitate dialogue between stakeholders, leverage local knowledge and incentivize community participation in NRM activities."
• MNOs and other technology organizations have a critical role to play. "Although NRM organizations are increasingly tech savvy, many still lack the technical skills and expertise required to keep pace with technological innovations, and are typically overly cautious using donor funds to test 'experimental' digital solutions. The projects in our dataset indicate that when an NRM initiative receives support from an MNO or other technology organization, it is twice as likely to leverage emerging technologies like connected devices, blockchain or artificial intelligence."
• The GSMA and its members can support ambitious responses to climate challenges. "As the environmental crisis becomes even more complex and far-reaching," the GMSA expects "to see even greater integration between digital technology and NRM activities."

The GSMA importantly notes:

The use of digital technology in NRM, such as mobile devices, satellites, the Internet of Things (IoT) and artificial intelligence (AI), is still nascent, but has grown steadily over the last decade. There is increasing evidence that when developed and applied in a customizable and scalable way, digital solutions can significantly improve the efficiency, responsiveness and efficacy of NRM activities. However, current efforts are generally fragmented and poorly documented, making it difficult for stakeholders to learn from best practices, replicate success or identify opportunities for collaboration.

The report, however, points out that "In the coming years, as the environmental crisis becomes even more complex and far-reaching, digital technology will play an increasingly critical role in protecting livelihoods and the natural resources on which they depend." The UK-based organization says that its "analysis of existing projects and conversations with stakeholders suggests there are two impact areas where further support could help mature and mainstream digital innovation in this sector. First, further research and insights are required to reveal and promote examples of best practice, to help technology organizations develop sustainable business and partnership models, and to empower underserved populations to play a more active role in NRM. Second, there is potential for new cross-sector partnerships and dialogue within and across stakeholder groups to catalyze new action."

Lastly, GSMA's "research found that when developed and applied in a customizable and scalable way, digital solutions can enhance the quality and efficiency of data collection, empower local and global communities to be engaged in conservation efforts and aid real-time decision making. It is also clear from the three case studies presented in this report that digital technology can help scale nature-based solutions to climate action in ways that reduce biodiversity loss and optimize nature's contribution to resilient livelihoods."

Which digital technologies do you think will be utilized to facilitate the sustainable use and management of our planet's natural resources?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

GSMA Report Explores How to Reach and Empower Women in Digital Solutions in the Agriculture Last Mile

"In low- and middle-income countries (LMICs), the digitization of agricultural value chains is enabling access to markets, assets and services for smallholder farmers," the GSMA says in a report that examines "the limited participation of women in digitized agricultural value chains by identifying the main barriers for women in D4Ag [digital agriculture] initiatives and shedding light on best practices to increase women's participation and empowerment in these value chains."

The report further notes that D4Ag "solutions, such as digital payments and digital procurement, create efficiencies for both agribusinesses and farmers in the last mile. Digital procurement solutions can generate a range of records, including farmers' production data that enable the creation of economic identities and help them access finance. Digital procurement solutions can also be bundled with digital advisory services that provide farmers with vital information on new farming techniques, weather forecasts and crop production."

"Yet," according to the GSMA, "women farmers are being left behind. Although they represent 43 percent of the agricultural labor force, women face social and structural barriers that typically relegate them to traditional, low-value and labor-intensive activities, such as plowing, sowing and harvesting." What is more, "Restrictive social norms, lack of access to resources and the mobile gender gap all make it more challenging for women to participate fully in agricultural value chains and embrace the digital agriculture solutions that can connect them to markets and services and strengthen their decision-making power."

The report identifies the following digital solutions in the agricultural last mile:

1. Digital profiles: Mobile for authentication and verification, and a tool to create economic identities/digital profiles
2. Track-and-trace systems, farm management systems: Product verification services, accountability tools
3. Information services: Agricultural extension, education, certification standards, skills development
4. Digital financial services: Mobile money-enabled transfers, payments and financial service
5. IoT applications for agriculture: Equipment logistics, crop, soil and weather monitoring, smart warehousing
6. Agribusiness analytics: Predictive analytics, precision agriculture

With respect the barriers facing women in digitized agricultural value chains, the report looks at the social norms, lack of access to resources, and mobile gender gap that contribute to these barriers. It also presents steps to increase women's participation in digitized value chains including defining a gender strategy to guide gender-inclusive interventions, creating a gender-inclusive environment through foundational interventions, and addressing women's barriers through gender-inclusive interventions.

The report produces the following conclusions:

• "Women's low participation in digitized agricultural value chains can only be addressed through approaches that purposely consider women as well as men."
• "The early impact of gender-inclusive last-mile digital solutions on women farmers' participation and decision-making power is promising." through the efforts of organizations creating digital agriculture solutions that has "increased yields and incomes, as well as increased decision-making power in the household."
• "A deeper understanding of women's agency and the social norms shaping their lives is needed to bridge the gap in commercial agriculture value chains."
• "Donors and impact investors are uniquely positioned to push gender inclusive interventions forward. They can inject capital in initiatives that purposely include and target women, and ultimately help to create a level playing field in which women smallholder farmers have equitable access to digital solutions."
• "Donors and investors should first apply a gender lens to their own investment strategies to identify and reward new D4Ag investees that already apply, and want to test, approaches that reach both women and men."
• "Donors and investors should also leverage their ongoing investments to encourage investees to adopt best practices, such as consistently collecting and using sex-disaggregated data, or involving women in human-centric design research to inform the design of solutions. Investors can also make investments that strengthen the resilience of women farmers to climate change since they are disproportionately affected as a result of lower input use or weaker safety nets."

Lastly, I support the report's assertion that "By incentivizing and rewarding D4Ag providers, donors and impact investors can guide them towards gender-inclusive approaches that aim to improve women's influence, leadership roles and decision-making power, and promote sensitive and equal gender norms at all levels. Without this, gender inequalities are not only likely to remain, but become exacerbated."

What are your recommendations for increasing women's participation in digitized value chains? Which digital solutions are you creating in the agricultural last mile?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.