www.unepfi.net

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The Inventors
www.unepfi.net
08/10/2009
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Companies Compete in 4 Markets
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Plus 2 Quasi Markets
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Invention.
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Invention.
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An Invention... In finance a new
invention quickly actioned and developed with
vigilance will...
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...An Invention Developed.
...Distinguish the Inventor, Win and retain
clients, Build reputation.
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Ingredients for invention Knowledge.
Action. Vigilance.
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Why Knowledge? Knowledge gives us context. What
knowledge is important to the financial context?
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"Few trends could so thoroughly undermine the
very foundations of our free society as the
acceptance by corporate officials of a social
responsibility other than to make as much money
for their stockholders as possible." -
Capitalism and Freedom p.133
But can this be found only in company financials?
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Knowledge that affects performance.
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Punished by the market
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Nevertheless, the liability concerns spread to
the Swiss-Swedish engineering giant ABB, and to
the maker of Jiffy bags and Bubble Wrap, Sealed
Air, as well as to the media giant Viacom and the
forest products company Georgia-Pacific. All
these firms saw up to 10 of their stock market
value vanish. "Investors are worried about
owning stocks with exposure to asbestos," said Mr
Zaret. "They see a long line of dead bodies and
they're scared. - BBC News.
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Leading financial services outfit Citigroup has
slashed its investment bankers' bonuses by up to
half, according to a published report. The news
comes only two days after CEO Sanford Weill said
he would give up any 2002 bonus, in light of the
company's poor stock performance. Shares of the
bank lost a quarter of their value last year,
amid claims of biased research and charges that
the firm had engaged in unethical behavior
related to Enron.
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Risk Management
From 1996 to 2000, 10 of the Fortune 1000 lost
over 25 of its shareholder value within a
one-month period. Many of these loses can be
attributed directly or indirectly to
non-financial issues.
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Source Mercer Management Consulting (2000)
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15
10
5
0
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This knowledge tells us there is a need for
invention. Banks need to understand the other 89
to protect their clients. But what invention?
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Sustainable Finance is about meeting this need
by
Demanding Knowledge, Demanding Performance,
Providing Invention, Providing Vigilance, In
order to produce performance.
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Sustainable finance is an Invention arising from
the need for better knowledge of how companies
perform in all of their markets. Access to
sustainable knowledge can help financial
managers, lenders and investors, make less risky
decisions, provide more exact and sophisticated
services to clients than the competition, and
stabilize and grow an economy as a whole. But
how does one action it here?
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That is why you, the inventors, are here
today! Your knowledge of local conditions is
indispensible. You have the advantage and power
to decide on the best local mechanisms for
making sustainable finance work.
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Lastly a note on timing
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"We look up. For weeks, for months, that is all
we have done. Look up. And there it is -- the top
of Everest. Only it is different now so near, so
close, only a little more than a thousand feet
above us. It is no longer just a dream, a high
dream in the sky, but a real and solid thing. --
Tenzing Norgay, Tiger of the Snows
Acting First.
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Action in Europe.
Where are they looking...
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Sustainability is a new concept in finance here
but not everywhere. In this market, will it be
your invention? Or Someone elses?
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Thank you very much, and best of luck today!