http://pricetags.files.wordpress.com/2008/04/800px-london_millenium_wobbly_bridge1.jpg
Finance for Sustainability
Bard MBA...
1. Our UNSUSTAINABLE economic system1. Our UNSUSTAINABLE economic system
“Safe Operating Space” -- The world is full
“Safe Operating Space”
- National Center for Ecological Analysis and Synthesis
Symptom: Increasing Wealth Inequality
http://www.inhabitat.com/2010/10/14/worlds-largest-and-most-expensive-family-home-co...
2. How we got here2. How we got here
Our economy has become an anti-economy, a financial system
without a sound economic b...
Economic Efficiency
Economy
Finance
What’s wrong with this picture?Desired Outcome
Planet
The most important chart
in the world…
Sustainability Optimum
Efficiency
100%
0%
Resilience
Source: Lietaer, Ulanowicz, Goerner 2008
Sustainability in Natural Sy...
3. Finance: Critical acupuncture point3. Finance: Critical acupuncture point
Sustainable finance: bottoms upSustainable finance: bottoms up
• Internalize externalities
- CSR, ESG
• New tools
- Integr...
Sustainable finance: top down (systemic)Sustainable finance: top down (systemic)
We are lost in finance…
• What is an “IRR...
Stranded Assets: our $20 T “Big Choice”Stranded Assets: our $20 T “Big Choice”
• 2 degree warming limit: 565 GtC02
• “Prov...
Resiliency: Driving financial capital upstream
http://3.bp.blogspot.com/_o0s746IzxZQ/TJwMEtnPvsI/AAAAAAAAAWo/lX-2e-
wPZzo/...
John Fullerton
jfullerton@capitalinstitute.org
www.capitalinstitute.org
Thank youThank you
John Fullerton Bard MBA in Sustainability Event Presentation
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  • Vision: a world in which finance serves a just, resilient, and sustainable economic system.
    Reform and Transform the financial system
    Mission:
    A think-tank committed to stimulating the interaction and action of leaders, scholars, and society by raising awareness of the need to harness the power of capital and markets to advance a just, resilient, and sustainable economic system that will improve lives and preserve our planet’s life support systems.
  • (Do we need “financial”?)
  • Remind people of the ask – add the conclusion
  • John Fullerton Bard MBA in Sustainability Event Presentation

    1. 1. http://pricetags.files.wordpress.com/2008/04/800px-london_millenium_wobbly_bridge1.jpg Finance for Sustainability Bard MBA in Sustainability Launch Event January 24, 2012
    2. 2. 1. Our UNSUSTAINABLE economic system1. Our UNSUSTAINABLE economic system
    3. 3. “Safe Operating Space” -- The world is full “Safe Operating Space” - National Center for Ecological Analysis and Synthesis
    4. 4. Symptom: Increasing Wealth Inequality http://www.inhabitat.com/2010/10/14/worlds-largest-and-most-expensive-family-home-completed/ Wealth Disparity: •2% of population Controls > ½ the World’s Wealth •50% of population controls < 1% of World’s Wealth •Income gaps between rich and poor > 2X in last 50 years Spain Denmark Norway Finland Sweden Netherlands Switzerland Belgium Germany Austria France Canada Italy Australia Ireland Greece New Zealand UK Portugal Japan USA Better Low Wealth Gap Wellbeing Worse High Wilkinson & Pickett, The Spirit Level (2009) Wealth Gap vs. Wellbeing
    5. 5. 2. How we got here2. How we got here Our economy has become an anti-economy, a financial system without a sound economic basis and without economic virtues. - Wendell Berry
    6. 6. Economic Efficiency Economy Finance What’s wrong with this picture?Desired Outcome Planet
    7. 7. The most important chart in the world…
    8. 8. Sustainability Optimum Efficiency 100% 0% Resilience Source: Lietaer, Ulanowicz, Goerner 2008 Sustainability in Natural Systems Collapse of Financial System
    9. 9. 3. Finance: Critical acupuncture point3. Finance: Critical acupuncture point
    10. 10. Sustainable finance: bottoms upSustainable finance: bottoms up • Internalize externalities - CSR, ESG • New tools - Integrated reporting • New (and old) ideas - Impact investment
    11. 11. Sustainable finance: top down (systemic)Sustainable finance: top down (systemic) We are lost in finance… • What is an “IRR” when we know everything is connected • What will replace MPT which sees risk as historical SD in a world facing “phase shift” uncertainty?
    12. 12. Stranded Assets: our $20 T “Big Choice”Stranded Assets: our $20 T “Big Choice” • 2 degree warming limit: 565 GtC02 • “Proved Reserves” have 5X this amount • 74% owned by States, 24% by companies At current market value, $20 Trillion choice Source: “Unburnable Carbon”, Carbon Tracker Report
    13. 13. Resiliency: Driving financial capital upstream http://3.bp.blogspot.com/_o0s746IzxZQ/TJwMEtnPvsI/AAAAAAAAAWo/lX-2e- wPZzo/s1600/upstream.jpg
    14. 14. John Fullerton jfullerton@capitalinstitute.org www.capitalinstitute.org Thank youThank you

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