Investment As If The Future Matters for TEDxTableMountain 2013


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Live version edit of TEDxTableMountain 2013 presentation, first speaker for a good day @TEDxTableMtn with some inspiring ideas and speakers #TEDxTM2013 @esgarchitect

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Investment As If The Future Matters for TEDxTableMountain 2013

  1. 1. Investing as if the future matters Graham Sinclair @esgarchitect
  2. 2. Global investors What ESG issues? Mining sector Plenary on Africa and investment at PRI in Person 2013 in Cape Town, South Africa, 1 October 2013. PHOTOCREDIT: Graham Sinclair/SinCo archive 2013
  3. 3. Global entrepreneurs Metals collector on the streets of Accra, Ghana, May 2011. PHOTOCREDIT: Graham Sinclair/SinCo 2013.
  4. 4. Long term investment is “marshmallow test” for adults SOURCE: Joachim de Posada: Don't eat the marshmallow! FILMED FEB 2009 • POSTED MAY 2009 • TED2009
  5. 5. 31-Jul-70 30-Apr-71 31-Jan-72 31-Oct-72 31-Jul-73 30-Apr-74 31-Jan-75 31-Oct-75 31-Jul-76 30-Apr-77 31-Jan-78 31-Oct-78 31-Jul-79 30-Apr-80 31-Jan-81 31-Oct-81 31-Jul-82 30-Apr-83 31-Jan-84 31-Oct-84 31-Jul-85 30-Apr-86 31-Jan-87 31-Oct-87 31-Jul-88 30-Apr-89 31-Jan-90 31-Oct-90 31-Jul-91 30-Apr-92 31-Jan-93 31-Oct-93 31-Jul-94 30-Apr-95 31-Jan-96 31-Oct-96 31-Jul-97 30-Apr-98 31-Jan-99 31-Oct-99 31-Jul-00 30-Apr-01 31-Jan-02 31-Oct-02 31-Jul-03 30-Apr-04 31-Jan-05 31-Oct-05 31-Jul-06 30-Apr-07 31-Jan-08 31-Oct-08 31-Jul-09 30-Apr-10 31-Jan-11 31-Oct-11 31-Jul-12 30-Apr-13 Total Compound growth Monthly Investments Compounding $150,000 $100 $300 $100 $112,500 $75,000 $37,500 $0 NOTES: In US$. Assumption monthly real growth rate 0.33% = 4% annual real growth rate. Terminal value @ 31 October 2013: US$100 = US$ 136,488 from 1 August 1970, US$300 = US$139,151 from 1 May 1990, US$100 uncompounded = US$51,900 from 1 August 1970. SOURCE: Sean Smith/RisCura and Graham Sinclair/SinCo, November 2013
  6. 6. Unless... NASA's Cassini spacecraft has captured Saturn's rings and our planet Earth and its moon in the same frame Earth, which is 898 million miles (1.44 billion kilometers) away in this image, appears as a blue dot at center right; the moon can be seen as a fainter protrusion off its right side. An arrow indicates their location in the annotated version. The other bright dots nearby are stars. 22 July 2013, 23:16:30. Source: NASA/JPL/SSI/CICLOPS
  7. 7. Anthropocene Era Caterpillar 785C Off Highway Truck. English: OceanaGold mining truck working the Macraes mine, Otago, New Zealand. Date5 September 2009 photographed by Benchill, copyleft: Multi-license with GFDL and Creative Commons CC-BY-SA-3.0
  8. 8. Externalities A cape fur seal pup swims around apparently unconcerned with the plastic ring around it¹s neck. However the seal is still growing and the plastic is not, leading to the inevitable and painful death of this animal. Plastic pollution in our seas is a growing problem and this is not an isolated incident. Photographed by Jean Tresfon at Duiker Island, Hout Bay 2013, on a Nikon D300 in a Subal Underwater Housing with 2 Sea & Sea Strobes. 1/250 F9 ISO400.
  9. 9. Big Investors? © 2012 Zapiro (All Rights Reserved). Printed/Used with permission from
  10. 10. Speaking up NGO posing questions during Global Reporting Initiative stakeholder meeting for launch of South Africa Focal Point at Johannesburg Stock Exchange, February 2013. PHOTOCREDIT: Graham Sinclair/SinCo archive 2013
  11. 11. More ESG data // ESG on Bloomberg ESG UNIVERSE ESG data coverage reported by Bloomberg LP, November 2013. 20.8% global coverage based on 10,807 companies of total number of listed companies in country with an average score of 18.6, includes only companies with active trading status at 5 October 2013. Environmental scores based on 4,379* companies with an average score of 20.7. Social disclosure scores based on 5,706* companies with an average score of 23.1. Governance disclosure scores based on 9,936* companies with an average score of 45.7. SOURCE: Bloomberg LP, November 2013.
  12. 12. Investment legacy Lance Armstrong, in maglia gialla di leader della classifica generale, all'arrivo dell'8a tappa del Tour de France 2003, Sallanches - L'Alpe d'Huez.13 July 2003. Source: Gawain78 Wikimedia Commons.
  13. 13. Better performance possible Relative ESG Index Size Relative ESG Index Performance 150 9% 1% 75 90% NOTES: US$ 16,717,754m n=1,152 (World n=793; EM n=327; S.A.n=32) at 13 November 2013. Free float market capitalization adjusted. SOURCE: MSCI Inc November 2013. Sep 30, 2013 Jul 31, 2013 May 31, 2013 Mar 29, 2013 Jan 31, 2013 Nov 30, 2012 Sep 28, 2012 Jul 31, 2012 Mar 30, 2012 May 31, 2012 Jan 31, 2012 Nov 30, 2011 Sep 30, 2011 Jul 29, 2011 May 31, 2011 Mar 31, 2011 Nov 30, 2010 Jul 30, 2010 Sep 30, 2010 May 31, 2010 Mar 31, 2010 Jan 29, 2010 Sep 30, 2009 Nov 30, 2009 Jul 31, 2009 May 29, 2009 Mar 31, 2009 Jan 30, 2009 Nov 28, 2008 Sep 30, 2008 Jul 31, 2008 May 30, 2008 Jan 31, 2008 Mar 31, 2008 Nov 30, 2007 Sep 28, 2007 0 Jan 31, 2011 South Africa ESG Index Emerging Markets ESG Index World ESG Index World ESG Index Emerging Markets ESG Index South Africa ESG Index NOTES: Assuming US$100 invested from 28 September 2007 thru 31 October 2013. Standard indices. Price return. Calculated monthly. SOURCE: MSCI ESG, November 2013.
  14. 14. Trusted stewards Key guard at Muizenberg beach, Cape Town, South Africa in September 2013. PHOTOCREDIT: Graham SInclair/SinCo archive 2013
  15. 15. Investing as if the future matters Graham Sinclair @esgarchitect
  16. 16. Long term investing as if the future matters 1. Investment is about saving for the future. The longer you invest, the more the investment takes advantage of compounding of positive returns, by keeping costs low and assets diversified across asset classes and regions over economic cycles. Unless you invest for the longer term... 2. Investment decisions include all material factors that estimate the future earnings of the firm. That means all financial facts, including environmental, social and governance (ESG) factors, matter. You need trust in the investment ecosystems and investment professionals in New York, Singapore, Dubai, London, or Johannesburg. Unless you demand ESG...
  17. 17. Investing as if the future matters Graham Sinclair @esgarchitect Skype: graham_sinclair + RSA +1.484.802.9908 USA +1.802.332.6887 SkypeIn sustainable investment consulting
  18. 18. SinCo designs ESG architecture for long term sustainable investment that matters. • With fellow CSR Africa keynote and sustainability legend, Gro Harlem Brundtland in Nigeria, May 2012. SinCo - sustainable investment consulting - is a specialist sustainable investment advisory boutique formed in February 2007. We have no other focus, we have no conflicts of interest. We build investment conviction and competence for our clients using ESG factors in investment ecosystems. Sustainable Investment Consulting Discussing the impact and future of the PRI with Kofi Annan in The Netherlands, May 2008. • Debating the progress of ESG in Africa and the role of private equity at the JSE in South Africa, August 2012. SinCo has a track record of building robust answers to tough questions in sustainable investment. Our clients have included institutional investors, UN agencies and international NGOs, think tanks and foundations and stock exchanges. @SinCoESG
  19. 19. is a new, strategic step in facilitating investment in Africa that purposefully integrates environmental, social and governance (ESG) factors. Africa Sustainable Investment Forum is an independent, Pan-African, not-for-profit network, knowledgebase and advocate promoting investment in sustainable development across the continent. Launched in June 2010, the Project is run by volunteers building a network of institutions and individuals promoting sustainable investment in Africa by investors in public, private and philanthropy sectors across asset classes, countries and stakeholders from our platform at defines "sustainable investment" as "an approach to investment in any asset class in Africa where environmental, social and governance (ESG) factors are proactively integrated at any stage of the investment life cycle." You are invited to join our all-volunteer project leadership team, or sign up as an individual member, or join your organization as an institutional member from 2014. Join us at 19