"We all have an unsuspected reserve of strength inside that emerges when life puts us to the test." - Isabel Allende (Chilean writer)
May 16, End Of Day
B Corps are companies certified by B Lab, a non-profit organization, for their commitment to high standards of social and environmental performance, accountability, and transparency. Sistema B is the Latin American arm of this movement, promoting sustainable business practices across the region. The certification process evaluates companies on their governance, workers, community, environment, and customers, ensuring a balanced approach to profit and purpose.
Key Impacts and Developments in Latin America:
1. Leveraging Technology for Impact:
B Corps in Latin America are increasingly leveraging technology to enhance their social and environmental impact. From utilizing digital platforms to streamline operations and improve transparency to adopting innovative solutions for waste reduction and energy efficiency, technology plays a crucial role in helping B Corps achieve their sustainability goals.
2. Gender Equality:
The "B Effect" on gender equality is particularly pronounced in Latin America. B Corp certification increases the likelihood of having a majority women workforce by 10% in the region, compared to 4.7% in the U.S. and Canada. This certification also enhances parental leave policies and care support within companies, promoting gender equality in the workplace.
3. Growth:
The number of certified B Corps continues to grow, with more than 8,600 companies globally, and Latin America being one of the fastest-growing regions with 1,190 companies today. This includes a significant number of small and medium-sized enterprises committed to sustainable practices.
4. Economic Resilience and Innovation:
B Corps in Latin America have demonstrated significant resilience during economic crises, such as the COVID-19 pandemic. This resilience is complemented by innovative business models that prioritize long-term sustainability over short-term gains, thereby contributing to more stable and equitable economic growth in the region.
5. Legal and Regulatory Advancements:
Countries like Colombia, Peru, Ecuador, and Uruguay have adopted the Benefit and Collective Interest Corporations legal model. This framework integrates social and environmental commitments into the core business activities, ensuring companies pursue both profit and positive impact.
These developments highlight the significant impact of B Corps and Sistema B in Latin America, fostering sustainable business practices and contributing to broader socio-economic and environmental goals. The movement continues to grow, driven by a commitment to creating a more inclusive and regenerative economy.
Rentennials: Rentennials is a peer-to-peer carsharing platform that connects local vehicle owners with renters. The platform has over 600 cars available for rental and has facilitated more than 2,600 rentals across six countries. Rentennials achieved a 5x increase in revenue over the last year. Dive deeper into the case here.
Aperta Salud: A chain of low-cost primary healthcare centers with a focus on user experience and digital solutions, to empower patients in Bolivia to receive efficient inclusive, and affordable healthcare. Dive deeper into the case here.
Tani: With over 700 surgeries performed and a 97% Net Promoter Score, Tani demonstrates exceptional patient satisfaction. They achieve 20-30% margins through volume pricing from clinics and provide 50-90% of the demand for surgeons. Dive deeper into the case here.
Dive deeper into other fundraising firms in LatAm here.
Brazil: Abu Dhabi’s Mubadala Capital plans to invest approximately $13.5 billion in a significant biofuels project in Brazil over the next decade. The investment aims to produce renewable diesel and sustainable aviation fuel, primarily using non-food plant materials. This initiative is part of a broader engagement in Brazil, where Mubadala's investments already include diverse sectors such as infrastructure and fast food. Additionally, Mubadala is involved in launching a new stock exchange in Brazil, diversifying its extensive investment portfolio in the country.
Argentina: Argentina's Economy Minister, Luis Caputo, announced that the country will report a fiscal surplus for April, marking the fourth consecutive month of surplus since President Javier Milei took office in December. This trend is a significant turn from the fiscal deficits of the past, with the first quarter of 2023 showing a surplus of $311 million, the first since 2008. The government attributes these surpluses to strict fiscal management, amid efforts to curb the country's near 290% inflation rate.
El Salvador: El Salvador has mined approximately 474 bitcoins since 2021 using geothermal energy from the Tecapa volcano, boosting its total bitcoin holdings to 5,750 bitcoins worth about $354 million. This initiative, led by President Nayib Bukele, has faced international criticism over environmental concerns and the volatility of cryptocurrencies. El Salvador was the first country to make bitcoin legal tender in 2021.
Check our recently published insights here. Recent post:
🏦 What are the main Fintech innovations in Latin America?
Latin America is at the forefront of the fintech revolution, driven by digital banking, e-commerce integration, and innovative payment solutions.
💳 Digital Banking: Transforming financial access for the unbanked with user-friendly digital platforms.
🛒 E-commerce Integration: Enhancing online shopping with seamless payment gateways and digital wallets.
💸 Innovative Lending and Payments: Offering flexible lending solutions and instant mobile payments to a broader audience.
🛡 InsurTech: Tailoring insurance products through AI-driven assessments, making coverage more accessible.
🌐 Regulation and Compliance: Navigating complex regulations with advanced technologies to ensure compliance.
🌍 Remittances: Revolutionizing cross-border transactions with efficient, cost-effective fintech solutions.
