Photo by Shutterstock
Improved cooking stoves
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Consumer Goods Retail
Business Model Description
Manufacture and distribute energy efficient cooking stoves for low income earners and rural communities.
Reduce fuel emissions from burning wood and contribute to air quality and health outcomes.
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
94% of Nigerians have been using dirty fuels for cooking.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Photo by VC4A / Powerstove
Case Study: Powerstove
Established in 2018, Powerstove develops affordable and sustainable energy solutions to meet the energy demand from households in Sub-Saharan Africa. The Powerstove clean cookstove combines clean energy, IoT and mobile phone technology.
- 1) Nigerian Bureau of Statistics (2020). Nigerian Gross Domestic Product Report Q1 2020. 2) Federal Republic of Nigeria (2017). Economic Recovery and Growth Plan 2017 - 2020. Abuja: Ministry of Budget and National Planning. 3) Oxford Business Group (2021). Nigerian domestic market supports producers of fast-moving consumer goods. https://oxfordbusinessgroup.com/analysis/domestic-moves-major-manufacturers-fast-moving-consumer-goods-have-been-supported-expanding-domestic 4) Odey, J., Saliu, H., Achukwu, E.O. and Olashina, O. (2018). Challenges and opportunities in the Nigeria textile sector. 5) Clean Technology Fund (2014). Investment Plan For Nigeria.
- 6) World Bank Database. 7) National Energy Policy 2003. 8) PwC analysis based on Prof. A. Damodaran data, 2020. 9) Jewitt, S., Atagher, P. and Clifford, M. (2020). 'We cannot stop cooking': Stove stacking, seasonality and the risky practices of household cookstove transitions In Nigeria. https://www.sciencedirect.com/science/article/pii/S2214629619304700?via%3Dihub 10) Clean Cooking Alliance (2020). Nigeria. https://www.cleancookingalliance.org/country-profiles/focus-countries/3-nigeria.html#:~:text=Exposure%20to%20smoke%20from%20polluting,deaths%20in%20Nigeria%2C%20every%20year. 11) Accenture Global Alliance for Clean Cookstoves (2011). Nigeria market assessment sector mapping 2011. 12) Gujba, H., Mulugetta, Y. and Azapagic, A. 'The household cooking sector in Nigeria: environmental and economic sustainability assessment'. Resources 2015, 4, 412-433. 13) National Renewable Energy and Energy Efficiency Policy (NREEEP) 2015. 14) Standards Organisation of Nigeria (2017). Nigerian Alliance for Clean Cookstoves and SON agree standards for improved biomass cookstoves. https://son.gov.ng/nigerian-alliance-for-clean-cook-stoves-and-son-agree-standards-for-improved-biomass-cook-stoves 15) Clean Cooking Alliance (2021). Wise Ecostove Nigeria Limited. https://www.cleancookingalliance.org/partners/item/999/2561 16) Federal Republic of Nigeria (2017). Implementation of the SDGs: a national voluntary review. https://sustainabledevelopment.un.org/content/documents/16029Nigeria.pdf 17) Federal Republic of Nigeria (2020). Nigeria Economic Sustainability Plan (2020). https://media.premiumtimesng.com/wp-content/files/2020/06/ESC-Plan-compressed-1.pdf 18) Federal Republic of Nigeria (2020). Integration of the SDGs into National Development Planning: A Second Voluntary National Review (2020). https://sustainabledevelopment.un.org/content/documents/26309VNR_2020_Nigeria_Report.pdf 19) International Finance Corporation. Case study: women entrepreneurs find business opportunities in Nigeria’s fastmoving consumer goods sector. https://www.ifc.org/wps/wcm/connect/7386ef01-05fe-4a26-8909-ead2143c6863/IFC-Daraju+gender+case+study+2019.pdf?MOD=AJPERES&CVID=mSnCvut