Anric Blatt Sustainability as an asset class

  • 176 views
Uploaded on

Sustainability - as a focus on investment themese is here to stay (and prosper) -

Sustainability - as a focus on investment themese is here to stay (and prosper) -

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
176
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
4
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. ANRIC BLATT Chairman GOBAL FUND EXCHANGE GROUP Partner TERRA PRIMA PARTNERS LLC Sustainability as an Asset Class FOOD, WATER & ENERGY AND WHY IT’S A MUST
  • 2. “Treat the Earth well. It was not given to you by your parents. It was loaned to you by your children.” “Treat the Earth well. It was not given to you by your parents. It was loaned to you by your children.”
  • 3. 7 BILLION AND CLIMBING 3
  • 4. 30% of the world's arable land will be unusable by 2020 50% may be unusable by 2050 with dire consequences for investors, consumers and governments. Namib Desert, Namibia 2007
  • 5. 5 0 2 5 7 9 1950 1987 Today 2040 Population in Billions Arable Land in hectares / person Population growth & arable land
  • 6. 0 175 350 525 700 1970 1980 1990 2000 2010 2020 2030 2040 2050 6 POPULATION AVERAGE CALORIES PER PERSON FEED GRAIN NEEDED - All Indexed back to 100 in 1970
  • 7. 7 0 175 350 525 700 1970 1980 1990 2000 2010 2020 2030 2040 2050 POPULATION AVERAGE CALORIES PER PERSON FEED GRAIN NEEDED - All Indexed back to 100 in 1970
  • 8. 0 175 350 525 700 1970 1980 1990 2000 2010 2020 2030 2040 2050 POPULATION AVERAGE CALORIES PER PERSON FEED GRAIN NEEDED - All Indexed back to 100 in 1970 “It takes 1,000 tons of water to make 1 ton of grain and 7 tons of grain to produce 1 ton of beef.
  • 9. 9 “If we unbalance nature, mankind will suffer. We must consider future generations: a clean environment is a human right like any other. It is therefore part of our responsibility toward others to ensure that the world we pass on is as healthy as, if not healthier than, we found it.
  • 10. “go long agriculture and water and go to the beach ...... ... put those investments in the bottom drawer for 10 years. Agriculture and water would even beat energy investments” Invest in agriculture and water, says BlackRock CEO Larry Fink
  • 11. we are extracting fresh water at rates up 100 x the natural replenishment rate.
  • 12. To avoid political turmoil and regime changes, governments have no choice but to continue investing in food, water and energy infrastructure
  • 13. THE CALM BEFORE THE STORM
  • 14. Sir David King, Chief Scientific Adviser UK Government “The global battle for natural resources – from food and water to energy and precious metals – is only beginning, and will intensify to proportions that could mean enormous upheavals for every country.”
  • 15. If we unbalance nature mankind will suffer.
  • 16. Today with over 2 Billion people who are malnourished, we must address a crisis unfolding.
  • 17. The facts are undeniable and the outcome subject to the actions taken by you and me today. 100,000 people die every day of starvation.
  • 18. The world's geopolitics will be shaped by the global race for four strategic resources: food, water, energy & metals
  • 19. 10,000 species have gone extinct in just the past 100 years
  • 20. if bee populations fall too far, our food supplies will be seriously threatened . . . Over 70% of our food is pollinated by bees . . . . 5.9 Million (1947) 2.62 Million (2012) 1.8 Million (2013) 4.5 Million (1980)
  • 21. This crisis for mankind and our planet is simultaneously our greatest challenge, as well as a once in a lifetime investment opportunity for visionary investors.
  • 22. 22 by 2025 the agricultural sector will experience serious water shortages. Crop losses due to water scarcity could be as high as 350 million metric tons per year, slightly more than the entire crop yield of the U.S. International Food Policy Research Institute (IFPRI)
  • 23. Leave a Legacy that you would like to inherit
  • 24. 24
  • 25. WHAT IF
  • 26. WHAT IF WE, DO NOTHING ?
  • 27. WHAT, IF ?
  • 28. 29 WHAT IF WE CONTINUE DIGGING ?
  • 29. 30 WHAT IF WE KEEP BURNING?
  • 30. 31 Amazon Deforestation 2012. Since President Dilma Rousseff took office in Jan. 2011, she has reversed deforestation laws WHAT IF WE KEEP CUTTING? DOWN OUR FORESTS
  • 31. 32 Amazon Deforestation 2012. Since President Dilma Rousseff took office in Jan. 2011, she has reversed deforestation laws WHAT IF WE KEEP CUTTING? WHEN WILL IT STOP ?
  • 32. 33 KEEP DISCARDING ?
  • 33. 34 WITHOUT CONSEQUENCES
  • 34. 35 Wondering why our children are sick ? Kansas, July 2nd, 2007 WHAT IF WE, CONTINUE POLLUTING ?
  • 35. 36 Fire at the Chevron oil refinery in Richmond, California, August 6, 2012 WHY DO WE KEEP BURNING?
  • 36. enough solar energy hits the earth in one single hour WHEN to power the entire globe for a full year.
  • 37. 38 A view of an illegal oil refinery is seen along a creek outside the oil hub city Port Harcourt in Nigeria's Delta region. WHAT IF WE KEEP LOOKING THE OTHER WAY?
  • 38. 39 In a world where, over 1.4 billion people – 20% of the world’s population . . . That’s 20% of the world’s population
  • 39. 40 . . . live in areas where the limits of sustainable water use have already been reached or breached.
  • 40. 41 n o k i d h u n g r y . o r g when already
  • 41. 42 Deepwater Horizon, Gulf of Mexico WHEN EVERY YEAR WE KILL MORE
  • 42. 43 Yangtze River, Sept 2012 Dinner, Seriously ? WHEN THIS SEEMS NORMAL ?
  • 43. 44 1 billion people lack enough water to simply meet their basic needs. World Health Organization WHEN ALREADY 80 COUNTRIES HAVE WATER SHORTAGES
  • 44. 45
  • 45. 46 ARE WE GOING TO
  • 46. 47 WHEN
  • 47. 48 DRINKING THE COOL AID ARE WE GOING TO KEEP
  • 48. 49
  • 49. 50 “Slow down” Panama, Sept 2012 WHAT IF WE HAVENT EVEN SEEN THE EFFECTS OF CLIMATE CHANGE
  • 50. 51 . . . . JUST THE BEGINNING WHAT IF THIS IS ...
  • 51. 52 what if these are your kids ?
  • 52. 53 Rio de Janeiro AND THIS IS . . . . ... THEIR DINNER TONIGHT
  • 53. 54 Bangladesh Garbage dump or playground ? AND THIS IS . . . . ... THEIR BIRTHDAY PARTY
  • 54. 55 FOOD, WATER & ENERGY
  • 55. 56 AND THIS IS . . . . ... OUR LEGACY ?
  • 56. OR ARE YOU GOING TO TAKE ACTION ? WATER OFF A DUCK’S BACK ?
  • 57. OR ARE YOU GOING TO TAKE ACTION ? WATER OFF A DUCK’S BACK ?
  • 58. - amidst these challenges WE MUST FIND THE PROFIT OPPORTUNITIES OBSTACLE = OPPORTUNITY OBSTACLE OPPORTUNITY PROFIT GO
  • 59. 60 IS THIS . . . . . . OR THE BEGINNING
  • 60. GLOBALFUNDEXCHANGE.COM NEW YORK + 1 212 570 7970 HONG KONG +852 8174 6688 TERRAPRIMAPARTNERS.COM
  • 61. AND NOW, BACK TO MAKING MONEY 62
  • 62. Global energy demand to increase 50% by 2030 Weather & climate anomalies Population growth of 80 million people/year Significant infrastructure underinvestment since 2008 Significant stress on global food supply Rapid industrialization & urbanization of emerging markets Severe water stress & major increases in water demand China, India & developing world natural resource consumption Peak Oil vs. Peak Cheap Oil China’s race to super power needs Energy, Water, Agri & Resources WHY ? BECAUSE THEY ARE MUST OUTCOMES Global shift towards lower carbon energy & CO2 use Population and income growth – the two most powerful forces behind rising global demand for energy, water and natural resources.
  • 63. Weather & climate anomalies Population growth of 80 million people/year Significant infrastructure underinvestment since 2008 Significant stress on global food supply Rapid industrialization & urbanization of emerging markets Severe water stress & major increases in water demand China, India & developing world natural resource consumption Global energy demand to increase 50% by 2030 Peak Oil vs. Peak Cheap Oil Population and income growth – the two most powerful forces behind rising global demand for energy, water and natural resources. China’s race to super power needs Energy, Water, Agri & Resources WHY ? BECAUSE THEY ARE MUST OUTCOMES Investments in Water Investments in Energy Investments in Agriculture Clean Energy Investments Global shift towards lower carbon energy & CO2 use Natural Resource & Commodities
  • 64. MARKET DRIVERS 65 ENERGY SUPPLY SHIFT ENERGY PRICE VOLATILITY WATER SCARCITY BUILDING / LIGHT EFFICIENCY GRID UPGRADES NEW TRANSPORT SOLUTIONS DECLINING ARABLE LAND CONSUMER Evolving economics driving a shift toward renewables, natural gas, nuclear, and away from coal and oil. Shale gas is changing the energy landscape. Organic and efficient products experiencing secular growth. Consumer driven demand for smart technology taking off Massive capital spending required to upgrade aging transmission and distribution infrastructure to a smart grid. Energy cost volatility, regulatory changes and cost savings initiatives driving investment. Electric and natural gas vehicles approaching mainstream adoption. THANK YOU ELON As per capita incomes rise, expanding protein consumption puts the pressure on agriculture yield, this drives technology and investment. Supply challenges complicated by accelerating water demand and increasing concerns with water quality. Climate change is hitting home Security concerns and the recognition of a need for more diversified sourcing, as well as a perception of “peak oil” leads to supply constraints. TERRAPRIMAPARTNERS.COM
  • 65. WAYS TO INVEST WITH IMPACT 66 EQUITY FUNDS SECTOR FOCUSED FUNDS REAL ASET FUNDS COMMODITY FUNDS OTHER Public Long Only Mutual Funds ETF’s Public Hedge Private Equity Venture Capital Hybrids Bonds Credit Funds Ag Land Timber Clean (er) Energy Water rights & entitlements Natural resources Green infrastructure Green Buildings Property REITS Agriculture Energy MLP Gas Clean (er) Energy Solar Wind Water Natural resources Impact Assets TERRAPRIMAPARTNERS.COM Systematic (CTA) Energy Relative Value Metals
  • 66. AGRICULTURE - THE VALUE CHAIN 67
  • 67. WATER 68
  • 68. THE SHALE GAS OPPORTUNITY 69
  • 69. CLEAN ENERGY OPPORTUNITY - SOLAR 70
  • 70. CLEAN ENERGY - WIND 71
  • 71. CLEAN ENERGY - EFFICIENCY - LED LIGHTING 72
  • 72. SUSTAINABILITY AS AN ASSET CLASS 73 ENORMOUS UNIVERSE RESEARCH - NOW MORE THAN EVER PORTFOLIO CONSTRUCTION CONSTANT INNOVATIONS ECONOMIES OF SCALE GEOPLITICAL FACTORS RISK MANAGEMENT EXIT STRATEGY 25+ Different Asset Classes Hundreds of sub-sectors Geographic variances Knowing when to exit and reinvest is critical. Kick the buy high - sell low habit. Diversification amongst multiple geographies, asset classes and managers takes deep pockets New technology coming to market daily, need to remain flexible Fed Monetary Policy Regulation & Policy Subsidies Full time attention to changing conditions, profit taking and portfolio rebalancing Combining different asset classes to reduce risk, reduce volatility and improve returns Qualitative Quantitative Forensic
  • 73. OR JUST GIVE IT TO THIS GUY 74 HE’LL DO SOMETHING GOOD WITH IT THANK YOU TO PETER FUSARO O P P O R T U N I T Y
  • 74. ANRIC BLATT +1 212 888 71 57 AB @ TERRA PRIMA PARTNERS . COM Do not follow where the path may lead go instead where there is no path AND CAREFULLY LEAVE A TRAIL