Speaker 1: 0:12

Welcome to the IdeaGen Catalyze Impact podcast Today. I am thrilled to have with us Christina Shapiro, chief Strategy Officer at UNICEF. Christina, welcome.

Speaker 2: 0:24

Thank you, George. It's a pleasure to be here today.

Speaker 1: 0:26

You know, christina, you've amazed me over the years with your leadership, the impact that you're having, and so I want to, for our global audience, go right into our interview and talk a little bit about you. You had an interesting upbringing in Mexico City and you've had what I would say, and everyone else would say, is just an incredibly impressive career, spanning finance, philanthropy and impact investing. Christina, what inspired you to shift from the highest level of the corporate world, including your time at Goldman Sachs and L'Oreal, to UNICEF USA?

Speaker 2: 1:13

George, thanks for that question and for the praise. I feel like I'm at the beginning of the impact that I hope to achieve over my life, so appreciate the praise, but so much more to do. As mentioned, I grew up in mexico city, and when you grow up in mexico city you have a direct window into income inequality, but at the same time, you also have a direct view on on the importance of economic development opportunities to create a growing middle class, to to really allow people to rise from poverty into better opportunities for them and their children, and so that motivated me to be a very active citizen. Some people call it being a nerd, but I thought of it as being a good citizen. I regularly led volunteer initiatives in my school to reach low-income schools and communities in Mexico City.

Speaker 2: 2:02

The other thing that really motivated me is that my father was a cardiologist. He passed away when I was very young, but he really believed in serving patients of all income high income, low income, it didn't matter. I mean, his goal was to really save as many people as he could, and I had the privilege of often accompanying him on these visits to see patients in their homes on the weekends, and I was able to evidence both the disparity and access to shelters and homes, but also in terms of medical care, because he would see them. But in terms of follow-up I mean the difference in the follow-up access that they had was starkly different. So that really grounded me in a focus of me existing in a broader world and wanting to make an impact that was broader than what I could achieve for myself. And so, as you noted, I think of my first phase of my career, which was in consulting and in marketing at L'Oréal as really a way to access key skills and in marketing at L'Oreal as really a way to access key skills. So in consulting and marketing I was able to learn financial analysis and Excel and product development. And perhaps I was a bit opportunistic because when I graduated from UPenn, all these firms were hiring and I figured, you know what, let them train me and give me skills that I don't have so that I can then use those skills to focus on that economic development that I care so much about. And so that was really the second phase of my career, and I think of the economic development, finance for good phase of my career as spanning the public sector, starting with the city of New York, working for Mayor Bloomberg, then going to Goldman and then ending up at UNICEF USA.

Speaker 2: 3:45

And so you mentioned Goldman, and I was recruited there after working for the city of New York, where I led the division of small business services and had realized the power of connecting businesses with financing, and specifically, businesses that are the cornerstone of their communities but that don't have access to financing from banks.

Speaker 2: 4:05

And so, at Goldman, I was afforded the opportunity to use their balance sheet for good, capitalizing small businesses and low and middle income communities that did not meet the credit standards of traditional banks, and this was a few years after the financial crisis.

Speaker 2: 4:19

And then I had the opportunity to go to the foundation to run 10,000 women for the last year and a half of my time there, which is this incredible program that provides women entrepreneurs in emerging markets with the education and the connections and the skills and access to financing that they need.

Speaker 2: 4:35

And we know that when we do that, women ultimately reinvest in their communities and it improves the GDP of their countries the GDP of their countries. So, having done that work and being so proud of it realized, you know I want to be in an organization where I can wake up every single day and focus on impact, and while Goldman was a phenomenal opportunity and it afforded me the ability to impact so many businesses in the US and internationally moving to UNICEF USA to run the Impact Fund for Children and internationally moving to UNICEF USA to run the Impact Fund for Children, which is their innovative finance affiliate, granted me the opportunity to wake up every day and think about how I could use finance to positively impact children, and I can't think of something that is more worthwhile than that.

Speaker 1: 5:19

And you said it so well. There really isn't anything more worthwhile than that, christina, and so would you be able to explain how the UNICEF Bridge Fund works and why just why is it such an innovative financial tool?

Speaker 2: 5:37

Absolutely so. I run the Impact Fund for Children. That's the innovative finance affiliate of UNICEF USA, and the one fund under management that we've had for probably over 12 years is called the UNICEF USA Bridge Fund, and it exists to address a very simple problem, and that is the problem of timing of cash. Then there's a gap that emerges between when there's a commitment of funds to UNICEF by all these incredible generous donors around the world, whether they're governments or whether they're individuals or foundations, and when that cash actually gets received by UNICEF.

Speaker 2: 6:09

And so what we realized is that often UNICEF needed to be able to put in an order for supplies before a health outbreak, an outbreak of polio, or before mosquito breeding season to prevent malaria, but the donor dollars to support those equipment and those health commodities maybe hadn't arrived.

Speaker 2: 6:32

And so we created the Bridge Fund so that they could ask us for money and we could send that money before the donor money arrived, and in essence it's a really simple revolving debt fund. Donor money arrived and in essence it's a really simple revolving debt fund we raised a pool of grants that it collateralizes, a pool of fixed term, fixed rate loans from individual lenders, institutional lenders and banks and insurance companies, and then when UNICEF needs to respond to an emergency in days, we can send that money and then get repaid as a donor money comes in. When they need to put in an order for health commodities, we can send the money and then get repaid as a donor money comes in. When they need to put in an order for health commodities, we can send the money and get repaid when the donor money comes in, and that accelerates impact and saves lives saving lives, and that is absolutely critical here in the work that you're doing.

Speaker 1: 7:19

And so, christina, what are some of the biggest challenges in securing and deploying these impact investment funds for children?

Speaker 2: 7:30

So, george, if I ask most investors if they care about children I mean, and I have they will all say they do care about children. But they'll also say, well, but why is that my problem? Children are not my stakeholders. They don't take on loans, they don't take on mortgages, they're not heads of household, they're not economic agents, if you will, and so investors simply do not see children as key stakeholders. And so that's the first challenge, and that's why we created Child Lens Investing. It is an approach to investing that seeks to reduce harm to children and maximize positive impacts for children, and it is asking investors to consider children as stakeholders in investment processes and investment strategies, and the way that we designed it was to be a really broad umbrella. So it's relevant. If you're an investor in public equities, where children are affected stakeholders, if you're invested in like probably you and I are right we have our investment portfolios and likely we have stock and we're investing in publicly traded companies, well, children are affected by those companies, and so we could choose to actively engage as active investors, or we can screen in companies into our portfolio, based on those companies that are actively considering child rights. So that's an example if you're invested in public equities. If you are in private equity or a private capital investor, you're likely impacting children indirectly, or children could be discrete beneficiaries of your strategies. And so if you're doing real estate or consumer goods companies or energy investments, children are being impacted and we're inviting investors in those private capital strategies to realize that. And certainly if you're an impact investor, where children are the direct beneficiaries and achieving impact for children as your North Star, then you're going to be more proactive and you're going to be incorporating investments that directly impact children positively. So that's what we've done with Child Lens Investing.

Speaker 2: 9:30

But back to it. You asked me what the challenges were. So the first one again is that children are not considered stakeholders, and that's because most investors simply don't know how they impact children or how children are showing up in their impact measurement data. So that is a key first step that we would need investors to start to think about. Some other challenges are that they're often not always, but often is a longer term horizon for child specific outcomes, and we know that investors typically prefer shorter term outcomes and returns. And then another challenge is that there are few financial instruments that focus on children directly or that actively consider children. So if you're an investor today looking to allocate money to positively impact children, there aren't that many financial instruments that are available to you. So those are some of the challenges to answer your question.

Speaker 1: 10:21

That's just amazing to hear, and it's also impressive to hear how you navigate those challenges right. So I mean, there's the challenges and the approach to that and, um, it goes back to your leadership. Again, christina, can you share for our global audience a success story where the bridge fund and there I know there's many and it's hard to figure out which one- I asked me to pick my favorite, my favorite child.

Speaker 2: 10:47

I can't Right.

Speaker 1: 10:49

Sorry for that, but I think it's important to nail it down to one. If we can where the Bridge Fund made a tangible difference in a child's life or in a community.

Speaker 2: 11:00

Absolutely so. Just starting with the broader numbers, since its inception in 2011, the Bridge Fund has fast-tracked and enabled nearly $700 million in impact, as I mentioned already, accelerating delivery of emergency support in a range of humanitarian settings, from Afghanistan to Ukraine, but also investing in solutions that strengthen the health supply system. So the example that really stands out for me is that a couple of years ago, during the Ukraine war, as you know, the price of wheat really went up. There was a significant shortage of wheat. It impacted the malnutrition crisis in the Sahel and in other areas, and there was a really acute malnutrition crisis. And we partnered with UNICEF and other investors to create this really novel facility where we provided those suppliers that make ready-to-use therapeutic food. It's like a peanut paste that severely malnourished children can eat. If you give a severely malnourished child bread and water, they might throw it up. They can't digest it. But this miracle food called RUTF, or ready-to-use therapeutic food, is a cure for severe acute malnutrition and in six weeks, at a cost of about $66 per child, you could cure that severe acute malnutrition. And so what we did is this novel facility provided those suppliers of RUTF advanced dollars to scale up their production and to meet increased demand. So that way they had the flexibility to address challenges in their labor, their input costs and equipment to respond to the malnutrition crisis that was happening globally.

Speaker 2: 12:47

And this is risky right Providing loans to RUTF manufacturers. They're in thanks to UNICEF's effort. These are suppliers that are close to the countries. They're in the countries where the RUTF is most consumed. They're subject to outbreaks salmonella outbreaks which could shut down the facility for some time. They're in complex environments where often there is conflict, but through that partnership, alongside with other investors, as of February of this year, we have enabled UNICEF to distribute six and a half million cartons of malnutrition treatment enough to treat six and a half million children. So that, to me, feels like we leaned in at a moment of great need. There was definitely risk, we sized the risk and we went all in to ensure that these suppliers had what they needed. We leaned in at a moment of great need. There was definitely risk, we sized the risk and we went all in to ensure that these suppliers had what they needed to meet the demand and meet the moment. So that's my example. I'll stick to that.

Speaker 1: 13:40

Speechless. I mean it's incredible to hear, I mean to reverse or to save or to address. You know, use any of the words that I mean it's. I'm not typically at a loss for words, christina, but that's just incredible what you're doing, you can change the trajectory of a child's life and there's no greater reward, as we all know, and so how do I pivot from that as Chief Strategy Officer? What are your main priorities for USA in the coming months and years?

Speaker 2: 14:22

Thank you, george, and I'm really honored that I, in addition to my role leading the Impact Fund, I've moved into the role of chief strategy officer over the last year, and so, before I tell you our priorities, I think it's important to ground your audience in in the context that we're living in, and so, if you think about children and the world that unicef exists in, it's really a point in time where there's there it's a poly crisis. Children are being impacted not by one, but by many crises. You you know, still coming out of COVID. There are significant climate-related events impacting over a billion children around the world. There is now a funding gap and crisis that's been further rendered acute. We're also in a world where there's more misinformation and polarization, so that is the context that we exist in. We've also, if you look at the reports that GivingUSA has published, we have seen a bit of a decrease in philanthropy and how philanthropy is committing to causes around the world, and so we do see that there are more nonprofits contending for private sector resources, especially as governments around the world are pulling back for private sector resources, especially as governments around the world are pulling back from humanitarian and development aid. However, within all of this. We are not falling into the gloom. We see hope and we have seen remarkable gains in the last few decades, and so our key priority, based on that context, our key priority and our key strategy as UNICEF USA is to be the most influential force, mobilizing Americans to radically improve outcomes for the world's most vulnerable children and youth.

Speaker 2: 16:02

And note that is our role vis-a-vis UNICEF, where we exist in the United States, to rally the American public to drive outcomes for children, and by Americans, by mobilizing Americans. I'm specifically referring to three key audiences the American public, you and me, people who are consuming media and who may not know about UNICEF or know UNICEF, but we need to bring them more into the fold, build trust with our brand and bring them through. We refer to another key audience as the public sector, and that's certainly federal, state and local government that have both the resources but also the ability to influence policy and make policy that impacts children, both in the United States and abroad. And absolutely the private sector in all of its forms, whether that's individuals, whether that's institutions like foundations, corporations and faith-based organizations. And the reason that we're leaning into being this compelling force is that we have the results to prove, george, that if we do rally around the cause that unites us and that is children which you know, children are not political we can bend the curve to improve outcomes for all of the world's children. So, very clearly, our priorities over the coming years are going to be to leverage our compelling brand, the UNICEF brand, to catalyze transformative growth in our supporter base in all of its forms. That will allow us to achieve the second key priority, which is to increase flexible support for critical programs that UNICEF delivers to children all over the world, and flexible funding is the most valuable funding because it allows UNICEF delivers to children all over the world. And flexible funding is the most valuable funding because it allows UNICEF to pivot when a health outbreak occurs. If all of the funding is restricted, they may not have the funding to revert and respond to that crisis. The third thing is to drive positive policy and practice changes that elevates children's well-being and that will allow us to then deliver on impact.

Speaker 2: 18:03

And just some examples of the areas that we're leaning into in the coming three years, which is the term of our strategic plan, is to intentionally invest in program emphasis areas, and those are it links to my Bridge Fund.

Speaker 2: 18:16

Example is to end deaths from severe acute malnutrition.

Speaker 2: 18:21

And I don't know if you saw, but recently we announced a partnership with the Bezos family, who committed an incredible $500 million towards this effort, as matched to hopefully get to a billion dollars, and it's the largest single gift that UNICEF USA has received.

Speaker 2: 18:37

The second program emphasis area is to drive digital transformation to meaningfully impact learning outcomes, and that's simply because we can't sit here and not react when there's a learning poverty crisis and where 70% of children cannot process a simple text by the age of 10. And then the last two program emphasis areas are to equitably safeguard children in crisis and displacement, and that's because, if we just take UNICEF as an example, unicef responds to over 400 emergencies on average in a given year, but in any given year, 66% of funding goes to really top three emergencies that break the press cycles in the US. So we really need to make sure more funding is going to chronically underfunded emergencies. And because we're an organization that exists to drive youth action and youth voice, we are really focused on driving a child-centered governance, and that's just simply saying that helping youth shape the policies, the budgets that impact them. So there we are.

Speaker 1: 19:39

And so, christina, as we look at this, how do you feel that the role of impact investing is evolving, when you look at it from a global development effort perspective?

Speaker 2: 19:53

I think of the role of it's not just impact investing. I'm going to zoom out and think of innovative finance as a way to grow the pie of resources that are available to achieve impact for children. We need to complement philanthropy and government support through ODA. Those are critical, will remain critical.

Speaker 2: 20:12

I see innovative finance as a way to unlock, leverage and align billions in dollars in capital for sustainable and innovative financing transactions that are directly and or indirectly contributing to child outcomes. So I'll be brief, but some examples and strategies that we're leaning into in support of that are sovereign debt refinancing, recognizing that over 400 million children live in debt burdened countries. We're leaning into forward financing solutions for programs, and that's examples like the bridge funding, which I talked about, but also bond issuances that can use the proceeds to invest in programs or revenue generation for UNICEF. We're leaning into impact investing and the funding for our UTF suppliers is an example of that and certainly, as I started at the beginning, really this concept of getting more investors to align with incorporating children as key stakeholders and incorporating children's well-being into their investment strategies and processes. So those are some of the ways that we are seeing the potential for innovative finance to shape and complement the efforts that UNICEF and others are playing in the international development space.

Speaker 1: 21:24

And, as you're working through all these innovative financial solutions, you're looking at the gaps, like you talked about, in funding for children's programs. What are those gaps Like? What are you doing? What are the many things that you're doing? Let's go back for a second. What are the many things you're doing to help address those gaps in funding?

Speaker 2: 21:47

So I'll give you some examples of what we're doing in the innovative finance space. Certainly, in the philanthropic and private sector space, we're absolutely focused on increasing awareness of the impact of the funding cuts on children and there are many and then inviting those audiences, both those that already know UNICEF and those that don't, to work with us and to allocate resources at whatever level they can to address the gap. So that's on the philanthropic and government side. On the innovative finance side, I mentioned debt swaps, and certainly those are not new. I mean, you can look them up In 2024, the World Bank did a debt swap for Cote d'Ivoire, where they executed a debt for development swap targeting nearly 400 million euros to allocate towards education.

Speaker 2: 22:36

And so UNICEF is actively exploring debt sops that would create the fiscal space for governments to invest in programs that benefit children. So, by refinancing a portion of their debt bilaterally with private investors, for example, they can then reduce their costs and allocate the savings in interest expense towards programs for children, whether that's education or health, whatever the priorities of that country are. And so you know again why is UNICEF focused on refinancing debt for countries? Because, as I mentioned, 400 million children live in countries where those countries can't allocate their own budgets towards programs because they're paying such a significant amount in debt. So that's one example.

Speaker 2: 23:20

The other one is continuing to think of solutions, like the partnership that UNICEF launched with the World Bank several years ago, where the World Bank issued a $100 million note. 50 million of it was provided to UNICEF through an agreement and that went to fundraising activities in 18 UNICEF country offices that have a burgeoning private sector. And that's important, because my own country, mexico, if you think about it, it has an active private sector and you want to make sure that you're raising money for programs in Mexico through the private sector that's there and for every dollar that's invested in fundraising, typically you are able to get two to three dollars, you know, within a year, a year and a half, so you can pay back the note and still invest in UNICEF programs. So those are two examples that we're actively involved in and that we hope to increase over time.

Speaker 1: 24:12

You know, christina, you never cease to amaze me, and and speaking speaking of amazement, let's talk about you again, because this is, for me, it's about defining leadership and your leadership at Goldman Sachs, specifically with the 10,000 Women Initiative, which I saw up close and personal when you were running. It helped many, so many thousands of female entrepreneurs, and so you learned a lot. Obviously, what lessons did you take from that initiative, that incredible initiative, and applied to your current work at UNICEF USA?

Speaker 2: 24:55

I mean the first thing you should know because that's how you lead is these are not my results. These are the results of a team and effort and those who were before me and then certainly the teams that were there once I left. So that's the first thing, but a couple of important lessons are the and this might sound trite, but the importance of public-private partnerships. So what enabled the 10,000 Women Program to really work? It was certainly on the capital front. If you think about it. It was Goldman outlining that this was a key opportunity and allocating its own resources. We invited others to join us and mobilize with us, and then we partnered with the IFC to launch the lending component of 10,000 Women and they really leaned into it and we were able to bring in other investors and then that really started to shape and took force in and of itself.

Speaker 2: 25:44

So public-private partnerships and I saw that at Goldman and I'm certainly I mean that's how UNICEF works. I mean I was just in UNICEF Zambia, a little bit over three weeks ago, and it is UNICEF working with the government, with local NGOs, with the local communities, with private sector support to ensure that these programs can come to life. So I think that's the first lesson and I hope my entire career will be ripe with public-private partnerships powering impact. The second is that investing in women and children is not just the right thing to do, but it's a smart solution. And women I think there's plenty of research that shows that when you invest in women, you are investing in a community and it is also lifting not just the family and the community, but it is resulting in positive GDP growth for those countries in the community, but it is resulting in positive GDP growth for those countries. So UNICEF really believes that it's something that we do, not because we're pursuing a diversity strategy, but because women are incredibly powerful anchors of communities and investing in programs that elevate them we know will have an impact on children.

Speaker 2: 26:58

And then the third thing I would say and I really learned this not just through my work in 10,000 women, but also in 10,000 small businesses that was focused in the US is that investing in local companies strengthens local communities. Right, they hire and they source locally, they're improving the tax revenues of those communities, they're the cornerstone of those communities, and we did that in investing in small businesses across the United States, investing in women entrepreneurs in emerging markets. And then what we're doing at UNICEF right now right, providing those advances to RUTF manufacturers that are small, medium-sized enterprises in Nigeria and in Burkina Faso and in Ethiopia are really powering impact in those communities. So those are three important lessons that I've taken with me here, but I expect I'll take them with me wherever I go.

Speaker 1: 27:48

Christina, you know I've done a lot of interviews, as you know, and you've done a lot, and I've got to tell you I am so incredibly inspired by you, personally and professionally, and to see and hear your passion and that, combined with your leadership, which I think is the recipe for massive outsized impact, and that's the results that you just articulated today. It's just for me, it keeps the cup full. You know what I mean. It's just for me, it keeps the cup full. If you know what I mean, it's understanding why it is that we do what we do every day, and I can't thank you enough for sharing all of the insights and perspectives that you're working on at UNICEF USA to change the world. Thank you, george, and so I'd like to ask you sadly, we're concluding, you'll be back, okay? Thank you, george, and so I'd like to ask you sadly, we're concluding, but you'll be back what is your final call to action for our global audience?

Speaker 2: 28:49

So my call to action is to learn, donate and advocate, and I want to explain why. I said it before, but I want to state it Funding cuts are and will continue to impact children, so I'm asking your audience to be part of the solution. We estimate that more than 213 million children in over 146 countries will require humanitarian assistance. That's in addition to all of the development work that we want to do to continue to move outcomes for children forward. And so if we halt UNICEF's lifesaving activities, millions of children's lives are already at risk and will continue to be more at risk. And I just want to inspire you.

Speaker 2: 29:35

Right together with the American public, with its institutions, certainly with the American government, we have nearly eradicated polio right. There used to be three and a half million cases globally in the mid-1980s, and there were seven cases in the first half of 2024. So I just want to leave you with a call that it is possible to achieve these outcomes, it is possible to end polio for good. It is possible to cut child mortality by 60% since 1990. We've done that together with all the support of thousands and thousands of Americans, and so what I leave you with is to those who have been given much. Much is expected in the world, and I think that generous spirit makes us better people, a better culture, a better country, and I hope all of you will really help to bring to life the opportunity that children deserve, knowing that children are one third of our world, but they're 100% of our future. So please join us.

Speaker 1: 30:38

Incredible Well said, and what is the website that they can go to to find more information?

Speaker 2: 30:43

unicefusaorg.

Speaker 1: 30:45

Love it. Christina Shapiro, changing the world, leading the way. Thank you, my friend.

Speaker 2: 30:50

Thank you. Thank you so much, george, bye-bye.