Sustainable Finance   Converting Risks in to Opportunities Keynote Address  by SOMAK GHOSH President Corporate Finance & D...
Paradigm Shift –  Periphery to Mainstream   <ul><li>From the intellectual labyrinth to day-to-day lexicon of global busine...
<ul><li>Long-held beliefs…. </li></ul><ul><ul><li>“ Business of business is business ” </li></ul></ul><ul><ul><li>As a ‘an...
Business Case for Sustainability  –  Drivers for Sustainability <ul><li>Rapid Globalisation  – increasing integration; wha...
Stakeholders for Sustainability GE -  to invest  $1.5 billion a year in clean tech R&D by 2010, part of  Ecomagination  st...
Banks & Sustainability <ul><li>A bank transforms money in to place, term, size and risk in an economy </li></ul><ul><li>an...
Banks & Sustainability <ul><li>Equipped to weigh risks, can attach prices to risks and  use price differentiation to foste...
Sustainability @ YES BANK  <ul><li>Cognizant of responsibility as a Public Trust Institution to mainstream sustainability ...
SUSTAINABILITY @ YES BANK Deal Generator Deal Generator SUSTAINABILITY in ACTION Deal Generator Not for profits Microenter...
Sustainability Financing  – Suzlon <ul><li>Suzlon Energy Ltd  – ‘ house banker’  to Suzlon, among worlds top 5 wind turbin...
<ul><li>Honey Beekeeping  – structured trade transaction solutions to augment  sustainable livelihoods of over 2000 honey ...
YES BANK - Bank of Choice for Business of the Future YES BANK  – Future of Alternative Investments
<ul><li>THANK YOU </li></ul>
Upcoming SlideShare
Loading in …5
×

Sustainable Finance Converting Risks in to Opportunities

1,664
-1

Published on

Keynote Address
by
SOMAK GHOSH
President
Corporate Finance & Development Banking
YES BANK Ltd.

given at the TBLI CONFERENCE ASIA 2008.

Published in: Economy & Finance, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,664
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
138
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Sustainable Finance Converting Risks in to Opportunities

    1. 1. Sustainable Finance Converting Risks in to Opportunities Keynote Address by SOMAK GHOSH President Corporate Finance & Development Banking YES BANK Ltd.
    2. 2. Paradigm Shift – Periphery to Mainstream <ul><li>From the intellectual labyrinth to day-to-day lexicon of global businesses and core business strategy </li></ul><ul><li>Current thinking in Sustainability </li></ul><ul><ul><li>Aligned to core strategy </li></ul></ul><ul><ul><li>Helps businesses understand and respond to changing social and environmental pressures/realities </li></ul></ul><ul><ul><li>Enables innovation in process and products </li></ul></ul><ul><ul><li>Helps identify new potential markets </li></ul></ul><ul><ul><li>Lends competitive advantage </li></ul></ul>
    3. 3. <ul><li>Long-held beliefs…. </li></ul><ul><ul><li>“ Business of business is business ” </li></ul></ul><ul><ul><li>As a ‘an artificial person’ a corporation does not have responsibilities </li></ul></ul><ul><ul><li>Profits the only responsibility of business as long as it stays within the rules of the game </li></ul></ul><ul><li>Realisation that businesse s do not operate in a vacuum ; taking cognisance of changing market realities and mainstreaming sustainability </li></ul><ul><ul><li>Goal of business is to deliver long term value </li></ul></ul><ul><ul><li>Focus on short-term profits, ignoring long-term sustainable growth detrimental for business </li></ul></ul><ul><ul><li>Accounting for and using resources efficiently and responding to needs of society is the RESPONSIBILITY of business </li></ul></ul>Paradigm Shift – Periphery to Mainstream
    4. 4. Business Case for Sustainability – Drivers for Sustainability <ul><li>Rapid Globalisation – increasing integration; what happens in one part of the world affects the rest </li></ul><ul><li>Changing Ecosystem – rising temperatures, melting glaciers, finite natural resources, significant demand-supply mismatch pushing up cost of resources </li></ul><ul><li>Consumer Preference – increasing awareness of and sensitivity to clean and green issues pushing up demand for clean products & services </li></ul><ul><li>Regulation – in 2000 Brazilian state-owned company Petrobras fined $ 28 million and $ 118 million for two oil spills, highest fines ever in Latin America </li></ul>
    5. 5. Stakeholders for Sustainability GE - to invest $1.5 billion a year in clean tech R&D by 2010, part of Ecomagination strategy BP – alternative energy unit spending $8 billion over 10 years for solar, wind and hydrogen Toyota – $ 8 billion for its hybrid and fuel-cell development in 2006 C O M P A N I E S Goldman Sachs – clean energy investments of $2 billion in companies such as First Solar, GridPoint, Iogen and SunEdison Kleiner Perkins Caufield & Byers (investor in in Amazon.com, Google & Netscape) created $ 200 million Greentech investment fund Vinod Khosla , Founding CEO of Sun Microsystems , picked up a 15% stake in a leading Indian microfinance institution, SKS Microfinance F I N A N C I A L I N S T I T U T I O N S <ul><ul><li>Japan - 10 year programme in 1990s to fund growth of solar PV industry; today flourishing without significant subsidies </li></ul></ul><ul><ul><li>Germany – significant investment in solar and biodiesel industries </li></ul></ul><ul><ul><li>China – committed to investing $180 billion over 15 yrs for clean energy </li></ul></ul><ul><ul><li>India – government to deliver electricity to 56% of 700 million rural residents lacking access to electric power by 2012 – 50% from renewable resources </li></ul></ul>G O V E R N M E N T S
    6. 6. Banks & Sustainability <ul><li>A bank transforms money in to place, term, size and risk in an economy </li></ul><ul><li>and, as such, it affects economic development. This influence is not only </li></ul><ul><li>quantitative but can be qualitative since banks can influence the nature of </li></ul><ul><li>economic growth ( Marcel Jeucken) </li></ul>Source: “Sustainable Finance: Strategy Options for Development Financing Institutions,” Gilbert Heim and Oliver Zenklusen (Sept, 2005)
    7. 7. Banks & Sustainability <ul><li>Equipped to weigh risks, can attach prices to risks and use price differentiation to foster sustainability </li></ul><ul><ul><li>Can use carrot & stick approach – lend at higher rate to environmental laggards and lower rate to environmental front-runners </li></ul></ul>Sustainability – Risk Mitigant for Banks Source: “ Just a Fad?”, Oliver Zenklusen and Gilbert Heim, Ecofact AG, Zurich (2005)
    8. 8. Sustainability @ YES BANK <ul><li>Cognizant of responsibility as a Public Trust Institution to mainstream sustainability within the Indian context </li></ul><ul><li>Vision to create a commercially viable financial institution that incorporates sustainability in core business focus through </li></ul><ul><li>Fourth Generation Sustainability not Philanthropy Identifying and fostering sustainable businesses in sunrise sectors including </li></ul><ul><ul><ul><li>Infrastructure </li></ul></ul></ul><ul><ul><ul><li>Information Technology </li></ul></ul></ul><ul><ul><ul><li>Bio-tech and Pharma </li></ul></ul></ul><ul><ul><ul><li>Agriculture </li></ul></ul></ul><ul><ul><ul><li>Social Infrastructure </li></ul></ul></ul><ul><ul><ul><li>Sustainable Livelihoods </li></ul></ul></ul>
    9. 9. SUSTAINABILITY @ YES BANK Deal Generator Deal Generator SUSTAINABILITY in ACTION Deal Generator Not for profits Microenterprises Responsible Banking (CSR & Sustainability Initiatives) Agri & Rural Banking (ARB) Sustainable Investment Bank (SIB) Idea Formation “ development finance in thought ” Projects Microfinance Investment Banking Rural Lending Alternative Energy & Environment Carbon Finance Social Enterprises Microfinance Institutions Group (MIG) YES SAMPANN : Direct Lending Thought Leadership / Advisory Lending Lending Advisory / Private Equity / Funding SUSTAINABILITY in THOUGHT
    10. 10. Sustainability Financing – Suzlon <ul><li>Suzlon Energy Ltd – ‘ house banker’ to Suzlon, among worlds top 5 wind turbine manufacturer </li></ul><ul><ul><li>Managed IPO in 2005 </li></ul></ul><ul><ul><li>Sole Strategic & Financial Advisor to raise USD 25 mn. growth capital in 2004 (entry at a business valuation of USD 120 mm approx, grown to USD 3 bn. appx) </li></ul></ul><ul><ul><li>Sole Advisor on key acquisitions Hansen Transmission ( USD 565 mn) 2006 & RE Power Systems ( USD 1.2 Bn) 2007 </li></ul></ul>Advisory Date: Over 2004-2007 Bank’s Exposure to Company: USD 25-30 mil Region/Sector: South Asia / Wind Energy
    11. 11. <ul><li>Honey Beekeeping – structured trade transaction solutions to augment sustainable livelihoods of over 2000 honey beekeepers winning the EUROMONEY Deal of the Year </li></ul><ul><li>Paramparik Karigar – structured trade facility to Paramparik Karigar, NGO of Indian craftsmen, enabling 27 craftsmen to exhibit indigenous Indian handicrafts at “ Gateway of India Exhibition” held in New York, March 2007 </li></ul>Sustainability Financing – Select Initiatives
    12. 12. YES BANK - Bank of Choice for Business of the Future YES BANK – Future of Alternative Investments
    13. 13. <ul><li>THANK YOU </li></ul>
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×