Bold ideas to create jobs and solve real city challenges

NYCx will open urban spaces as test beds for new technologies.

Through NYCx, the City of New York engages the tech industry to solve real-world problems and call on the tech vanguard to make NYC the most fair, equitable, and sustainable city in the world.

  • Co-Lab Challenges invite startups and entrepreneurs to work directly with community residents to solve neighborhood challenges while aiming to scale solutions for common issues for all New Yorkers.
  • Moonshot Challenges encourage global entrepreneurs to think big about NYC’s most ambitious problems, propose bold solutions, and deliver groundbreaking business models that transform and improve the lives of city dwellers globally.

Thanks to a partnership with The Boston Consulting Group, Bain & Company, and a team of skilled volunteers, Civic Consulting USA is a key part of of this new program.

A diverse group of technology and community luminaries are guiding NYCx, including:

“NYCx will transform the relationship between city government, community and the tech industry to be more collaborative and inclusive,” says Miguel Gamiño, Jr., New York City Chief Technology Officer.  “If we can test and solve critical challenges together in NYC and achieve our City’s goals, we can offer these solutions for other cities facing similar issues.”

Delivering on the bottom line ASAP

Can private equity be a driver of positive change for the environment, social justice and healthy institutions?

Civic Consulting USA says “Yes!”

In the investment community, environmental and social impact considerations are often abbreviated as “ESG,” which is short for “Environmental, Social, and Governance” factors.

There’s an increasing body of practice and research demonstrating that social impact considerations can drive bottom line returns for large, publicly-traded companies.

In fact, it is now common for pension funds and institutional investors to say that ESG considerations are important for long-term returns in the public markets. As Swiss Re Chief Investment Officer Guido Fuerer said, “Equities and fixed income products from companies and sectors with high ESG ratings have better risk-return ratios.”

However, in contrast to pension funds and endowments, which think decades ahead, private equity firms typically seek to deliver transformational value from the companies they control within just a few years. To date, the shorter-term focus of private equity firms has precluded most ESG or social impact considerations, particularly in the lower and middle market.

Until recently, only the largest publicly-traded private equity firms, such as Blackstone, KKR, or Carlyle, have had access to the financial and social benefits of ESG analysis. Due to their scale and public reporting requirements, such firms have dedicated teams to ESG due diligence and ESG board oversight. For these firms, it began as a risk-management function and good corporate housekeeping. However, it turned into a major source of value creation at their portfolio companies.

Strong ESG programs are driving customer satisfaction, brand equity, operational efficiencies, and happier, more productive employees – with combined EBITDA benefit in the tens of millions. These large firms have also taken millions of metric tonnes of carbon from the air and saved billions of gallons of water.

We believe these “double bottom line” benefits can spread to the middle market.

“We’re now seeing quantifiable examples of ESG initiatives delivering significant EBITDA value,” says ESG Portfolio Partners Principal Ted Knudsen. “Waste diversion, supply chain resilience, employee engagement, and productivity – these are all ways that the large cap PE firms are turning ESG into value for their LPs.”

Why is this important to the rest of us?

For one, US ranked 42 out of 45 OECD countries on the UN’s assessment of sustainable development. That means Americans live with greater inequality and pollution than our peers around the world.

Secondly, the companies owned by private equity grew jobs nearly three times as fast as other companies. In fact, these companies represent the second largest source of private-sector employment in the country. Changing the mindset of private equity investors has tremendous potential to affect millions of Americans in every city and community.

Third, private equity firms typically hold onto their investments for less than six years. New paradigms can take root quickly and yield benefits for American families before kids currently in middle school graduate from high school.

“If private equity firms in America take up ESG as global counterparts have, it will drive far larger and faster improvement in energy efficiency, gender equity, and fair wages than any current government regulatory effort,” says Alexander Shermansong, CEO of Civic Consulting USA. “PE firms have the money and the control over company boards to make world-changing progress on these collective impact issues in just three to seven years.”

Civic Consulting USA is committed to original research, developing toolkits and best practices, and providing custom-tailored guidance for private equity leaders. Our data-based approach will help the industry better quantify their positive societal impact for reporting to all stakeholders: investors, governments and the general public.

From housing to headquarters: Reflections on the state of public housing in NYC

Guest writer:  William White, Civic Fellow.

A lifelong resident of Throggs Neck Housing, a development where problems are met with a plethora of excuses rather than a remedy, I doubted the NYC Housing Authority’s ability or even desire to improve living conditions. However, I was pleasantly surprised when I met the members of the executive staff: I sensed a true compassion and an earnest desire to improve the standard of living for NYCHA residents through the NextGen plan.

This opportunity came when Civic Consulting offered me a fellowship in a project intended to improve NYCHA — and it was quite easy to accept the opportunity! As a political science major I generally have a strong interest in government. As a lifelong resident of public housing, I have a specific interest in the New York City Housing Authority.

The positive culture which I experienced at the NYCHA headquarters reflects the dedication of the Chair Shola Olatoye. I was encouraged when Shola shared that some of her fondest childhood memories were of visiting her grandmother who lived in public housing. Her personal story made it evident that she did not perceive NYCHA as simply a place to store the impoverished, but rather as a place that thousands of New Yorkers call home and raise their families. The Chair also shared several initiatives that NYCHA had undertaken during her tenure, and she candidly assessed their levels of success.

My interaction with the Chair left me with the impression that NYCHA is indeed heading towards desperately needed improvements.

However, it is clear that the Chair’s desire to preserve NYCHA’s infrastructure has not yet reached all of the developments. Indeed, as I type this, I must continually stop to dust away fallen plaster which accumulates on my desk like freshly fallen snow – the ceiling has been in disrepair for nearly five years.

It was during this fellowship that I realized that individual developments have a considerable amount of autonomy in terms of maintenance and repairs. I suspect this may be at the heart of what many believe is a lack of accountability on the part of many developments. And this goes to show that, even after living at Throggs Neck my whole life, I didn’t know how certain parts work.

Undoubtedly, the most exciting and indeed the most enlightening part of my fellowship arose from the two focus groups I led at Brownsville Housing.

The first group consisted exclusively of tenants. Much of what I heard during that conversation was not unlike what I hear from my own neighbors. The residents were primarily concerned with slow repairs, sanitary conditions, and safety. The second group was comprised of NYCHA employees, almost exclusively maintenance workers and groundskeepers.

The employees voiced similar concerns as the tenants. Predictably, both sides had something of a biased slant in their evaluations of the problems, pointing fingers, yet they both expressed a willingness to be more proactive in working towards the promise of NextGen. This was very encouraging.

It would be incredibly productive to have a discussion between the participants of the two groups. This would allow both sides to have an open, honest and constructive dialogue with one another, in which the sides could discuss the best way to meet the goals of NextGen NYCHA together. Moreover, we would be able to assess more accurately where the greatest disagreements lay. Ultimately this could strengthen the relationship between staff and residents.

One of the most salient aspects of the fellowship was the opportunity to see the dynamics and quite frankly the virtues of a public-private partnership. I saw this most prominently during the board meetings held by Civic Consulting. It was interesting to watch a number of highly accomplished experts from diverse professional backgrounds pondered the issues facing NYCHA and offer advice and potential solutions that may be outside of the conventional wisdom of a government agency. I enjoyed learning about the ways in which government can incorporate tools developed by private forces to trigger organizational changes which ultimately help the government agency and its beneficiaries.

What I appreciate most about this type of public-private relationship, particularly as fostered by Civic Consulting, is that it is more concerned with genuine government improvement, rather than the profit motive.