Category: Sanitation -

8 August 2014 | Posted By: Ilana Martin

iDE and American Standard: See big business in toilets at the bottom of the pyramid

By KC Koch

SaTo-1This is the story of a successful partnership between two organizations that share a passion for toilets: an NGO with 30+ years of making markets work for the poor and the largest toilet manufacturer in North America. Eventually, they made more impact together than either organization could make alone.

Combining diverse expertise

The idea of a partnership started back in 2011 at a water and sanitation conference in Delhi. Cordell Jacks, the co-director of iDE’s Global WASH Initiative, and Jim McHale, VP, Research, Development, & Engineering for American Standard, met for coffee. It didn’t take long before Cordell and Jim realized that they had the makings of a perfect partnership.

iDE would bring local expertise of rural supply chains and last-mile distribution in Bangladesh, as well as a host of sanitation market development experience gained from projects in other countries.  American Standard would bring 140 years of state-of-the-art product design, computerized fluid dynamic engineering & modeling, as well as global sourcing, manufacturing and state-of-the-art product testing.

Together they had the right combination of skills and knowledge to make a difference for the 2.5 billion people who live without improved sanitation in developing countries.

Cordell remembers the potential of the partnership: “American Standard and iDE are two organizations with complimentary skill sets. Both are dedicated to increasing and improving sanitation globally. Together, we demonstrated that there is a sustainable and profitable business model in the heart of one of the most challenging market conditions in the world. It is an amazing example of impact that can be had with innovative public private partnerships.”

Accepting the challenge

American Standard saw a whole new market in the 2.5 billion people who are typically overlooked by big business. Too many corporations assume the poor have no purchasing power. But the most forward-thinking brands, like American Standard, are starting to take notice of the enormous potential in the bottom of the pyramid (BoP) customers. With a grant from the Bill & Melinda Gates Foundation, American Standard accepted the challenge to create a new latrine product for poor people in Bangladesh.

A local understanding from iDE

As far back as 1982, Paul Polak, iDE’s founder, walked and talked with small farmers in their one-acre fields. He spoke with them about their challenges and their dreams. iDE is still inspired by Paul’s approach of asking questions first. Today, iDE practices human-centered design (HCD), a methodology that identifies solutions to various challenges by placing users at the center of the design process.

In 2012, iDE led American Standard through the human-centered design process in Bangladesh. iDE was working under a grant from the Swiss Agency for Development and Cooperation (SDC) and the Water and Sanitation Program of the World Bank (WSP) to implement the “SanMark Pilot project in Bangladesh.”

Tamara Baker, co-director of iDE’s Global WASH Initiative, recalled, “We opened new doors and ways of thinking for each other.” Together they spoke with small producers, salespeople, customers, and merchants. They field-tested prototypes, gathered customer feedback and ideated on product design. They also understood the potential market dynamics that could be strengthened to form a sustainable business model.

Product expertise from American Standard

American Standard joined iDE in Bangladesh for a deep dive to ensure their solutions would be feasible, desirable and affordable. The designer from American Standard, Daigo Ishiyama, provided the big “a-ha.” He noticed something only a fluid-dynamic engineer would notice. Previous latrine products use too much water. Meanwhile, Bangladeshi are accustomed to carrying a very small amount of water into the latrine. When you have less water, you need a smaller trap. The confined space creates a whirlpool effect and provides the needed flush power.

Then, American Standard created an ingenious counterweight trapdoor solution that effectively sealed off the feces from the open air. And, of equal importance, the trap hid the feces from view of the user. Customer feedback revealed that people didn’t know it was possible to not have to see feces when inside a latrine. They were thrilled! The resulting product was named the SaTo pan (pronounced SAH-toh, derived from “Safe Toilet”).

The American Standard team also provided plastics knowledge, the ability to rapidly prototype in plastic, as well as the financial resources and influence to support iDE’s longer-term engagement with domestic plastics manufacturer RFL Plastics Ltd. “Thanks to our partnership, we suddenly saw plastic as a very interesting material for scalable, sustainable products for improved sanitation,” said Conor Riggs, Technical Director – Programs at iDE Bangladesh. “It was the spark that led to other innovations in our program, particularly the development of a fully upgradeable, mass-producible latrine system that includes the SaTo Pan that will go to market in the fall of 2014.”

The case for the BoP

BoP business models can and do work. iDE staff see it daily. iDE operates programs in 11 countries across Africa, Asia, and Central America, that are laying the groundwork for corporations to enter this new frontier. iDE asks private enterprises to think beyond charity. A sustainable business model benefits both the private corporation and the people they serve. Armed with the right insights, private corporations can make an impact and make a profit. These are some of the foundational principles of iDE, which emanate from its founder, Paul Polak.

Paul recently expressed his approval of the collaboration that led to the SaTo pan: “Since poor sanitation is a key source of illness in developing countries, I am delighted to hear that iDE has collaborated with American Standard, the biggest toilet manufacturer in North America, to produce and start to distribute a radically affordable product to prevent the spread of diarrheal disease.  I am particularly impressed with the price of $1.50, which could make it accessible to millions of people.  It is simple, affordable devices like this that make the biggest impact.”

There is still a lot of convincing to do out there. American Standard is a pioneer. Their next horizon? Zambia—where they know it’s not a question of “if” the markets will be profitable, it’s only a question of “who” and “when.”

 

iDEorg.org

AmericanStandard-US.com

17 October 2012 | Posted By: A.G. Vermouth

Carbon Finance Boosts iDE’s Clean Water Business in Cambodia

photo by David Graham

For the first time in Asia, a sustainable and market-based water filtration business has been registered under the voluntary Gold Standard scheme, and will benefit from carbon offset funding, illustrating that carbon markets can support sustainable technologies that improve the lives of poor populations. iDE’s Cambodian social enterprise, Hydrologic, manufactures ceramic water purifiers which provide clean water to rural households, reduce the amount of wood burned to boil water, create local jobs, and bolster economic development. Hydrologic was recently named winner of a 2012 Ashden Award. Start-up resources for Hydrologic came from several sources including the USAID WaterSHED project in form of grants and technical assistance.

Nearly 40% of rural Cambodians still have no access to safe drinking water. Untreated water and poor sanitation result in about 10 million cases of diarrhea and 10,000 deaths per year in Cambodia, mainly affecting children in rural areas. iDE’s Hydrologic produces and sells ceramic water filters that provide safe drinking water to rural households of Cambodia. By displacing water boiling practices, the filters allow Cambodian households to avoid the unsustainable burning of 18,000 tons of wood per year, saving 41,000 tons of CO2 emissions annually. Thanks to this impressive environmental impact, the project has completed its registration under the voluntary Gold Standard scheme, an award winning certification standard for carbon mitigation projects.

The project has two major features:
• It uses a market based approach: Hydrologic Social Enterprise believes that sustainable business is a powerful way to provide clean water for as many people as possible. It created a market for water purifiers in Cambodia by selling affordable filters to NGO programs, and via shops and rural sales agents. Households benefit from a low cost water filtration technology, and the local economy is bolstered by the establishment of production and distribution facilities.
• Carbon offsets ensure a sustainable business model, as the carbon revenue is directly re-invested into further scaling up project activities.

Hydrologic joined Nexus, a nonprofit cooperative of NGOs and social enterprises that scale up development solutions by leveraging sustainable funding from the sale of high-quality carbon offsets, a concept referred to as “Carbon for Development.” Nexus provided financial and technical assistance with the carbon certification process, and is supporting the commercialization of carbon credits by engaging companies and public institutions on a fair approach to offsetting.

Hydrologic’s sustainable business model and its numerous benefits for the environment have also attracted private sector support. An impact investor, Impact Finance, provided a loan to support the development of the project, and a multinational company, Deutsche Post DHL, has committed to purchase carbon credits originating from the project.

 

 

31 May 2012 | Posted By: Ilana Martin

iDE Wins 2012 Ashden Award

Michael Roberts and Prince Charles

iDE Cambodia Director, Michael Roberts meets HRH Prince Charles prior to receiving Ashden Award on behalf of iDE/Hydrologic. (Photo: Andrew Aitchison/Ashden Awards)

 

We are very proud to announce that iDE’s social enterprise spinoff Hydrologic has been named winner at the 2012 Ashden Awards.

The Ashden Awards, given by The Ashden Trust, recognize and reward pioneering enterprises that share the Ashden vision of promoting “sustainable energy for all”.

Created in 2001, the event aims to raise awareness of the huge potential of sustainable energy to both tackle climate change and improve the quality of people’s lives.

The annual awards ceremony was held on May 30th at the Royal Geographical Society in London. iDE Cambodia Director Michael Roberts accepted the award on behalf of Hydrologic. Shortlisted in January, Hydrologic was announced as one of seven finalists for its energy saving ceramic water purifier.

Michael Roberts and Kandeh Yumkella

Dr. Kandeh Yumkella, Director General of UNIDO and Chair of UN-ENERGY presents iDE Cambodia Director, Michael Roberts with 2012 Ashden Award. (Photo: Andrew Aitchison/Ashden Awards)

Roberts said: “In Establishing Hydrologic, iDE set out to deliver clean water solutions to base-of-the-pyramid customers, creating social and environmental benefits while at the same time being financially self-sustaining. Our aim is not only that Hydrologic reaches this goal, but also to prove a concept that entices other market players to replicate and improve on what we have done.

“Winning this Ashden Award gives us a significant boost toward ensuring Hydrologic’s success and a magnificent platform for sharing our experience more broadly.”

Since its inception in 2001, iDE’s ceramic water filter project in Cambodia has manufactured and sold more than 230,000 filters, transforming the lives of thousands of poor rural households.  The project has been supported by US$ 1.9M in grants from numerous donors.  Half of that amount was from WaterSHED, a USAID program that facilitated the project’s transition to an independent social enterprise.

More on the 2012 Ashden Awards:

Read more about iDE and Hydrologic’s nomination at Ashden.org >

Download the full Ashden case study on the project >

16 April 2012 | Posted By: Ilana Martin

iDE Wins Wharton’s Inaugural Lipman Prize

Lipman prize acceptance

On Friday April 13, iDE was selected as the winner of the Wharton School’s inaugural Barry and Marie Lipman Family Prize for our innovative, market based water, sanitation & hygiene projects. We’re extremely honored to be the first recipient of this prestigious award!

Here’s a short video produced for the award ceremony:

Lipman Prize Winner: iDE

And here’s the official press release:

Philadelphia, PA, April 13, 2012 – The Wharton School of the University of Pennsylvania announced today the winner of its inaugural Barry & Marie Lipman Family Prize – iDE, a social enterprise that has pioneered innovative, market-based approaches to safe water and sanitation access. Chosen from hundreds of organizations worldwide devoted to social impact and building sustainable solutions for social and economic challenges, iDE received $100,000 and bragging rights at a gala marking the event’s culmination last night at the Wharton School. iDE and the two other finalist organizations, KOMAZA, a pioneering forestry social enterprise, and MedShare, a distributor of surplus medical supplies, will all profit from unprecedented, synergistic opportunities with Penn and Wharton.

“The $100,000 is one thing but the partnership with Penn and Wharton is just absolutely outstanding,” said Cordell Jacks, the Water, Sanitation, and Hygiene (WaSH) Program Co-Director at iDE. “We really believe that we’re going to change the world with toilets and we think that a partnership here is going to bring together great people, creative ideas and really solve a global public health challenge, something that is very finite and can be achieved in our lifetime. So it’s just really exciting to do this together with the University.”

About the 2012 Lipman Family Prize Winner:
iDE is an international nonprofit organization helping poor rural households in the developing world to access the tools and knowledge they need to increase their income. iDE’s productive water solutions create and increase both food production and incomes, and with innovative drinking water and sanitation technologies, iDE gives rural households the basis for healthier and more dignified livelihoods.

iDE’s involvement with improved sanitation began in Cambodia, which has 16 percent sanitation coverage. Cambodia has the second to worst rural sanitation coverage outside of Africa, at only eight percent. Furthermore, Cambodia loses approximately seven percent of its GDP, USD $448 million per year, due to poor sanitation. iDE Cambodia’s Sanitation Marketing Program (SanMark) recently reached the milestone of 10,000 latrines sold and, in 2011, the organization was awarded a major grant from the Bill & Melinda Gates Foundation, the Stone Family Foundation and the World Bank Water and Sanitation Program (WSP) to scale the SanMark approach nationally in Cambodia, targeting an additional 160,000 households. Building further on these successes in Cambodia, iDE has recently secured funding for WaSH activities in Bangladesh and Nepal with a $400,000 UNICEF-funded scoping and piloting project utilizing the model and support of iDE Cambodia to promote both water filters and low cost, sanitary latrines.

About the Lipman Family Prize:
Currently in its inaugural year, the annual Lipman Family Prize has been made possible by a $6.5 million gift from Wharton alumnus Barry R. Lipman and his wife, Marie.

“For more than ten years, I have had a strong desire to impact the non-profit/social responsibility sector,” said Barry R. Lipman, co-founder of California law firm Goldfarb Lipman. “Through a partnership with the University of Pennsylvania and the Wharton School, my dream has been realized with the awarding of the first Lipman Family Prize. Penn and I eagerly look forward to annually honoring an organization whose mission is to improve the lives of those less fortunate.”

Administered by the University of Pennsylvania through the Wharton School, the Lipman Family Prize is governed by an interdisciplinary Steering Committee comprised of faculty, and staff from across the University of Pennsylvania, drawing upon the expertise of such entities as the Center for High Impact Philanthropy, Wharton’s Center for Leadership and Change Management, the Netter Center for Community Partnerships, and the School of Social Policy and Practice.

The selection of Prize finalists involved a Student Selection Committee that reviewed initial submissions and conducted the due diligence process under staff guidance, and a Prize Committee that selected the finalists and chose the winner.

“This is the beginning of a long partnership with iDE, KOMAZA and MedShare as new members of the Wharton and Penn community,” said Thomas S. Robertson, the dean of the Wharton School. “The possibilities of these cross-sector collaborations are powerful and we look forward to our ongoing role in fostering sustainable new solutions for the advancement of society as a whole.”

For more information on the 2012 Lipman Family Prize and to view videos from the March 2012 site visits to the three finalist organizations, visit www.wharton.upenn.edu/lipmanfamilyprize.

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