bridging the gaps Tames Rietdijk 11 November 2011
Due to recent developments, capital markets have grown into a situation where size and scale now seem to be the only differentiators that matter, at the expense of what could be called the ‘middle class’, Situation in capital markets
Multiple environmental commodities are being launched for price discovery purposes, Supported by an increased adoption of sustainable performance measurement, Working towards the recognition of ‘True Value’, which is also to include social benefits, Developments in alternative markets
How can ‘big money’ be placed at ‘small initiatives’? How can we expand financial return into ‘true value added’? How can we make ‘financial investors’ and ‘impact investors’ meet? How do we consistently measure and report on environmental, social and financial performance? How can we quantify and reward environmental en social performance? Convergence of markets
Bridging the Gaps: Bright-Ex Provide an infrastructure That reduces the fixed costs for sourcing the investments and conducting due diligence, That facilitates deals in which different types of impact investors participate, Operate mechanisms or platforms which allow investors to diversify across multiple asset classes, Adopt metrics to help make relative financial risks and social or environmental performance more transparent, Present proven and scalable social business models, Apply a low threshold to enter the market for both sustainable initiatives and investors.
Qualify for sustainable investment Define sustainable performance targets Context and base lines Thresholds Certification through accreditation standards Conform to disclosure requirements Reporting on ‘triple bottom line’ performance Bi-annually Verification through audit and assurance Listing requirements
Environmental commodities Emission reductions (CO2e, NOx, SOx) Conservation banking Biodiversity credits Etc. Social dividends Poverty alleviation -> job creation credits Gender equality -> diversity credits Maternal health (care) improvements -> ? Etc. Emerging asset classes