LONDON, July 10, 2023 – The World Bank today announced the 15 Managing Directors and Chairs of the Private Sector Investment Lab. The founding members constitute a core group charged with developing solutions to overcome barriers to private sector investment in emerging markets. The quality of their individual – and combined – expertise, leadership and success in business and finance underscores the growing momentum and level of commitment to public and private collaboration to address global challenges and make urgently evolve development solutions.
Drawing on the experience of the 15 CEOs and Presidents who make up the Lab’s core membership – including executives from AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An Group, Royal Philips, Standard Bank , Standard Chartered, Sustainable Energy for All, Tata Sons, Temasek and Three Cairns Group – the lab will build on current World Bank work to address existing barriers and develop solutions that support private sector investment in markets emerging.
Announced last month, the lab will identify and focus on specific approaches that can be implemented and scaled up by the World Bank to mobilize capital more effectively, with the ultimate goal of attracting more private financing. This includes ideas for improving financing structures, ways to better align the World Bank with the needs and speed of private financing, approaches to balancing and spreading risks among investors, and reinventing new partnerships.
The lab will begin its work in the coming weeks, initially focusing on financing the transition in renewable energy and energy infrastructure.
Co-chaired by Mark Carney, UN Special Envoy for Climate Action and Finance and Co-Chair of GFANZ, and Shriti Vadera, Chairman of Prudential plc, the Lab will meet regularly and report directly to the Chairman of the Climate Group. World Bank, Ajay Banga, and to the World Bank. Group leadership.
Leadership and Co-Chairs
Ajay Banga, President of the World Bank: “The World Bank’s mission is to create a world without poverty – but on a livable planet. Achieving this vision requires us to build a better bank, but also to reimagine partnerships and mobilize the private sector to confront – and defeat – interlinked development challenges such as poverty, climate and fragility. The business leaders who dedicate their time, talents and expertise to this work are a crucial piece of the puzzle, and I am beyond grateful to have them among us. Results won’t come overnight, but if successful, this group has the potential to unlock significant investments that will create jobs and a better quality of life for people living in the Global South – the easiest way sure to put a nail in the coffin of poverty.
Shriti Vadera, Chairman of Prudential plc: “I look forward to working with Ajay Banga and his leadership team, as well as Mark Carney and our fellow Lab members, on the key priority of how the World Bank can mobilize and attract higher levels of financing private data that would otherwise not be available to the global public. goods such as climate transition, growth and poverty reduction. Every action and penny from every stakeholder counts, and we must prioritize solutions and actions that are scalable, rapid, and repeatable. We will focus on delivery and implementation to try to have a real impact on the ground.
Mark Carney, UN Special Envoy for Climate Action and Finance and Co-Chair of GFANZ: “To tackle global challenges such as climate change and poverty, we need new ways for the public and private sectors to work together to catalyze investment at scale and quickly, particularly in developing countries. Through the Private Sector Investment Lab, the World Bank and the private financial sector will work closely to develop, test, implement and ultimately scale financing structures and approaches that can most effectively mobilize investors. private capital. I look forward to working with Ajay, Shriti, and the Lab members to deliver this urgently critical mission.
Founders
Thomas Buberl, CEO of AXA: “Enabling an effective and equitable transition is one of the greatest challenges of our generation. AXA is already active in financing transition projects in emerging countries and we are delighted to join the Private sector Investment Lab to work with other players as well as the World Bank to better catalyze private capital for financing of the transition in these markets.
Larry Fink, CEO of BlackRock: “I have been talking for some time about how reinventing the role of multilateral development institutions could support an acceleration of investment in emerging markets. I commend Ajay and his team at the World Bank for their initiative and leadership on this front today, and I am honored to be asked to support this work through my participation in the World Bank Investment Lab. private sector.
Noel Quinn, Group CEO of HSBC Holdings Plc: “A number of financial institutions like HSBC are already developing innovative financing models in sectors and regions that are critical and difficult to transform in order to reach net zero on time. We need to both expand these models and develop new ones to accelerate progress. The Private Sector Investment Lab provides an important focal point for collaboration and knowledge sharing between financial institutions on this important topic.
Shemara Wikramanayake, CEO, Macquarie: “Tapping the world’s vast reserves of private sector capital is critical to achieving better outcomes for emerging markets. The World Bank and other MDBs have a critical role to play in catalyzing this capital, including through structures to allocate and manage risks at an early stage. Macquarie is excited to work with this group to help the Private Sector Investment Lab implement and scale these solutions, starting with a focus on bridging finance.
Hironori Kamezawa, CEO of Mitsubishi UFJ Financial Group: “As a financial institution based in Asia with a strong presence in emerging economies, MUFG is delighted to be part of the Private Sector Investment Lab. Collaboration between public and private finance is key to mobilizing transition finance, particularly in emerging markets. This initiative provides an excellent platform to work collaboratively to close the investment gap for the global common good.
Hendrik du Toit, CEO, Ninety One: “We welcome this initiative and are grateful to participate as it is vital that public and private funding jointly address these challenges. »
Jessica Tan, Co-CEO, Ping An Group: “We are delighted and honored to join the World Bank Private Sector Investment Lab. At Ping An, over our 35 years of existence, we have a long history of direct investment and commitment to supporting rural revitalization and development as well as social education, our community support program in China. We continue to support green finance, financial inclusion and helping communities manage climate-related sustainability issues. We believe the private sector can make a tangible difference in helping to advance climate goals, manage the risks of climate change and fight poverty.
Feike Sijbesma, Chairman of Royal Philips and Co-Chair of the Global Climate Adaptation Centers: “Business cannot succeed in a world that fails. We have a responsibility to contribute to the development work of the World Bank.
Sim Tshabalala, CEO, Standard Bank: “Attracting significantly more private investment to emerging markets would significantly accelerate inclusive human development and the just transition to a low-carbon economy. The Private Sector Investment Lab asks precisely the right questions about how the private sector and development finance institutions should work together. I am honored to join this discussion on behalf of Standard Bank.
Bill Winters, Standard Chartered Group Chief Executive: “Standard Chartered has extensive experience working with the World Bank to finance sustainable projects in emerging markets in Asia, Africa and the Middle East. As the need to mobilize private capital to close the climate investment gap reaches a critical juncture, we are committed to providing our long-standing market expertise to the Private Sector Investment Lab, to encourage innovation and act as a catalyst for credible progress in the private sector and blended finance.
Damilola Ogunbiyi, CEO, Sustainable Energy for All: “The multiple ongoing global crises affect developing countries disproportionately. Even though we already have solutions to develop solutions based on renewable energy to achieve progress in development and the fight against climate change, financing must be unlocked on a large scale in developing countries and poorly functioning sectors. served. This laboratory offers us the opportunity to work together to design solutions that will accelerate an inclusive global energy transition.
N. Chandrasekaran, Chairman of Tata Sons: “It goes without saying that financing the fight against climate change remains the most important challenge to overcome. Given the long-term nature of these investments and the risks involved, the creation of the Private Sector Investment Lab, to find innovative ways to attract private capital. “Partnering with public investment is an important global initiative. I am pleased to be included in this initiative and look forward to contributing and developing solutions.”
Dilhan Pillay Sandrasegara, Executive Director and CEO, Temasek: “Many emerging economies, particularly in Asia, are struggling to adopt sustainable solutions due to budgetary constraints, limited access to private capital and marginal bankability for many of their transition projects. Transition finance is essential to closing these gaps, and initiatives such as the Private Sector Investment Lab are a crucial step in mobilizing capital to accelerate the development and scale of viable pathways to carbon neutrality . I look forward to working closely with my fellow founding members of the Lab, bringing together public and private sector collaboration, to ensure our impact is amplified.
Mark Gallogly, co-founder and managing director, Three Cairns Group: “A dramatic increase in climate finance is needed, particularly in emerging economies. Three Cairns has focused on this need through initiatives such as Allied Climate Partners. We are honored to join the Private Sector Investment Lab and work with the World Bank and leading institutions to help generate, test and scale solutions that can become fit for this crisis.
