Humanitarian and Resilience (HRI) Disclosures – Final project report

This effort was led by a Dalberg-led consortium in collaboration with CrossBoundary and the International Rescue Committee (IRC), and supported by USAID's Bureau of Humanitarian Assistance (BHA) and The World Economic Forum (WEF). The project was spread over 18 months, covering an inception phase and three activities. The inception phase focused on aligning objectives, workplan, and responsibilities for USAID and the consortium. It also included interviews to develop early hypotheses on the needs, utility, deal breakers, and optimal form of the disclosures. Activity 1 focused on developing the information disclosures. A feasibility assessment was conducted using the WEF HRI white paper as a guide to assess the feasibility of existing investment disclosure initiatives in the ESG and SDG space. The feasibility assessment informed the design of prototype disclosures, which were discussed over three ideation convenings. Criteria were also developed to identify a pilot group to generate diverse learnings. Activity 2 focused on piloting the disclosures with 10 pilot organizations. A map of potential investors was developed, and introductions were facilitated to the investees. Information gaps were documented, and advisory support and deal structuring support were provided to the 10 organizations across three cohorts. The disclosures were adjusted accordingly, with learnings from each cohort shared over three webinars. Activity 3 saw the finalization of the disclosures and the development of a blended finance approach to support HRI investments. Based on the pilot learnings, the consortium designed a high-level blended finance approach, focusing on HR enterprises, to complement the disclosures. An adoption plan for the disclosures was finalized, with WEF's HRI initiative hosting the disclosures and relevant supporting guides. The refined disclosures and the high-level blended finance approach were socialized at a final convening. The project methodology involved three primary phases. The first phase involved developing prototype disclosures based on input from potential investors and capital seekers. The second phase involved piloting the disclosures in live transactions to confirm investor interest and test actual data collection challenges. The third phase involved identifying the most likely types of business models and private investors interested in the space, and identifying blended finance approaches to help these business models become more investment ready. The study involved primary research and interviews with over 40 stakeholders across the spectrum, including private sector capital providers, private capital seekers, and humanitarian organizations. Prototype HRI disclosures were drafted and received high-level feedback from a range of capital seekers, capital providers, and humanitarian and standard-setting organizations. The disclosures were tested with 10 pilot capital-seeking organizations in a live fundraising context, with findings from each cohort shared over three webinars. The project identified key business models within the HRI space and what kind of blended finance approaches might be useful to help them meet the requirements of each business model's most likely private investors. An in-depth recap of the project methodology can be found in the 'Detailed project methodology' section. The HRI Disclosures activity addressed the HRI data gap by developing and piloting humanitarian investment disclosures that allow organizations focused on humanitarian and resilience impact to share standardized data on impact and risks with potential investors. The project's findings and recommendations are expected to inform the development of HRI investments and support the growth of the humanitarian and resilience impact investing market.