Groundbreaking ConTech to Save the Himalayas: InnoCSR Co., Ltd.

For brick manufacturers across South Asia and Latin America, producing strong bricks for safe, solid structures is a top priority. However, making them can only be done through kiln firing — a method that relies on burning coal or firewood and creates a large amount of air pollution. The issue is especially serious in Nepal, where, according to recent studies from Yale University, regional brick manufacturers produce 23% of total black carbon emissions, a major contributor to melting glaciers in the Himalayans. Pollution from brick making within the country is so severe that on many days, the Himalayan Mountains are hidden behind the smog. Furthermore, a report by the World Bank attributes 37% of Nepal’s total CO2 emissions to the brick firing process.

Now, there’s a more sustainable solution. InnoCSR has introduced its own proprietary chemical product, Good Soil Stabilizer, which mixes with soil and cement to produce high-quality bricks without environmental harm. Good Soil Stabilizer enables manufacturers to fabricate bricks to the same specifications as traditional kiln-fired bricks, minus the firing process. Instead of firing them they are mixed with the soil stabilizer then pressurized through a hydraulic press process, and then can be dried in the open air. InnoCSR’s technology and business is a great step forward in eliminating air pollution caused by the brick industry, especially in South Asia and Latin America. And the company is using Nepal as its starting ground.

InnoCSR was established in 2008 as a strategy consulting firm focusing on corporate social responsibility (CSR) and environmental, social and governance (ESG). Since its founding, the company has served multiple Fortune Global 500 companies throughout Asia in developing their CSR/ESG strategies. When InnoCSR was started, CSR/ESG was mainly about helping society’s most vulnerable populations. InnoCSR helped its clients expand their definition of CSR/ESG activities and identified them as pillars for building global market penetration strategy. Satisfying all stakeholders, including both public and private sectors, was, and still is, imperative to building a sustainable business — especially in developing countries. “Doing well by doing good” has always been in InnoCSR’s DNA. Since 2014, the company has decided to walk the talk, and transformed from a consulting company to a company who leverages green technology in building green businesses.  

A conversation with ‘Sam’ Yoonsuk Lee, Founder and Group CEO of InnoCSR Co., Ltd.

Q. InnoCSR Co., Ltd. recently experienced a significant shift from CSR/ESG strategy consulting to soil stabilizer manufacturing and distribution. How did this change happen?

After a decade of ESG consulting, we had accumulated a great deal of connections with various stakeholders in multiple countries, especially throughout the developing world, including NGO leaders, academics, and government leaders. All were asking for green technologies from developed countries, but only those technologies that were simple, cost effective, proven and slightly ahead of the curve. We started calling these technologies “impact technologies”.

We looked for impact technologies in countries we were familiar with (mainly Korea, China, and Japan) and were very surprised at the number of technologies ready and available to be applied in developing countries. They just lacked expansion channels or simply didn’t know where to start. Our current soil stabilizer business was one of these impact technologies. Now we have taken over the technology and the inventor is our current CTO (Chief Technology Officer).

Q. What makes the company’s soil stabilizer unique?

Good Soil Stabilizer (GSS) is very different from existing soil stabilizers. Through further innovation, we’ve created a soil stabilizer with stronger binding capabilities by making the organic matters within the soil become inactive, fortifying the strength of the cement.

Most soil stabilizers invented before ours are only used for road construction which requires much less strength. Now we can use our stabilizers for the brick industry too, which is a real game changer.

Q. What does the market look like? Are there any current plans for expansion?

We are now concentrated on our operations in Nepal where we have strategically divided the country into 16 marketplaces, each with their own separate brick market and different primary brick manufacturers. So far, we have signed contracts to use our technology in 11 of these markets, with the strongest brick manufacturers in that area. The brick manufacturers in these regions have already started to build new brick factories with Good Soil Stabilizer technology. With these manufacturers transitioning from their traditional brick kiln model to our model, most of Nepal’s bricks are set to be manufactured without kiln firing within the next three to four years. We have manualized everything in this process which will serve as our replication guide in other South Asian and Latin American countries including India, Bangladesh, Pakistan and Mexico. The total market size that we will be going after in the region is about 10 billion USD.

Q. How do you differentiate yourself from other firms in your area?

What sets us apart from other firms is our decade-long history of dedication to ESG strategy consulting. In those 10 years of working with multinational firms in a very local context, tailored to developing countries, we gained an extensive knowledge about different markets, know-how about how to localize in them, and networks for carrying out the business. We also walk the talk and really try to stick to the stakeholder approach. When we entered Nepal, we made sure to set all the stakeholders up for success, including the brick manufacturers who are making much more profit using our solution, which motivated them to change. This trust between the stakeholders is the firm foundation of our business and a key factor in establishing a sustainable profitable business.

Q. Do you have any new products waiting to be launched?

We are always focused on our R&D, especially in the field of construction materials. Most of our ideas stem from a curiosity about how to take waste products and turn them into construction materials that can be used to solve multiple problems at once. That thinking is what led us to start testing bricks and road solutions using sewage sludge and plastic waste as well as testing paver blocks out of road dust. Both products are still in the R&D phase, but we’re seeing great results and we hope to introduce them to the market soon.

Q. What does the future hold for your company? Are exciting things on the way as an ESG Cross Border Commercialization Business?

Our goal is always to bridge the gap between those in need of solutions and the technology provider, as we specialize in ESG cross-border commercialization business. In order to facilitate this, we plan to launch our Green Technology Accelerator and provide expertise on localization, carbon credits and offer consultations on working with the MDBs (multilateral development banks). Since we’ve already succeeded in bringing our own green technology to developing markets, we’re in a very good position to help other companies bring their green technologies to developing countries, delivering results that are financially fruitful while protecting the environment.

Meet the leader behind the success of InnoCSR Co., Ltd.

‘Sam’ Yoonsuk Lee, Founder and Group CEO of InnoCSR Co., Ltd., has a long and respected history of supporting global sustainability endeavors. InnoCSR’s core strategy, known as “impact technology”, connects green technology companies’ work with developing countries to help them reach their social and economic goals. Prior to joining InnoCSR, Sam was Client Partner for Trilogy China in the automotive division and a consultant for UNICEF China’s Private Sector Fundraising division. Sam holds an MBA from China Europe International Business School (CEIBS) and a B.A. from Korea University. Sam is the author of “China MBA (2005)” and the co-author of “Green Leadership in China (Springer, 2014)”.

“Working with responsible technology firms from different countries, we have selected technologies that create social, environmental and financial impact. We call these the ‘impact technologies’.”