GLOBE Advisors - British Columbia's Green Economy - Securing the Workforce of...GLOBE Series
Powering the Business of the Environment
GLOBE Advisors is a boutique sustainability consulting firm headquartered in Vancouver, Canada, that specializes in providing project management, partnership development, market research, and strategic consulting services. We invite you to explore our website to find out how GLOBE Advisors can assist your organization with its strategic goals and objectives
www.globeadvisors.ca
Advancing Opportunities for Business and the Environment
GLOBE Advisors, a subsidiary of the Vancouver-based not-for-profit GLOBE Foundation, was established in response to an increasing demand for project-based sustainability consulting services in the environmental business sector.
The "GLOBE" name was established in 1990 and has become a recognized brand, both in Canada and internationally, with respect to the "business of the environment" - due in large part to the GLOBE Series of Conferences and Trade Fair Exhibitions held in Vancouver every two years and organized by the not-for-profit GLOBE Foundation.
In 2012, the company's President and CEO, Dr. John Wiebe, was recognized as one of Canada's "Clean 16" for his outstanding contributions to clean capitalism.
Our philosophy? Environmental challenges bring enormous opportunity for the business sector. Moreover, companies can do well by doing good for the environment, without sacrificing their bottom lines.
Our three guiding principles:
-Environmental problems are business opportunities.
-Companies that can provide clean technologies and solutions will prosper.
-Proactive organizations that embrace environmental sustainability will be more competitive.
GLOBE Advisors - British Columbia's Green Economy - Securing the Workforce of...GLOBE Series
Powering the Business of the Environment
GLOBE Advisors is a boutique sustainability consulting firm headquartered in Vancouver, Canada, that specializes in providing project management, partnership development, market research, and strategic consulting services. We invite you to explore our website to find out how GLOBE Advisors can assist your organization with its strategic goals and objectives
www.globeadvisors.ca
Advancing Opportunities for Business and the Environment
GLOBE Advisors, a subsidiary of the Vancouver-based not-for-profit GLOBE Foundation, was established in response to an increasing demand for project-based sustainability consulting services in the environmental business sector.
The "GLOBE" name was established in 1990 and has become a recognized brand, both in Canada and internationally, with respect to the "business of the environment" - due in large part to the GLOBE Series of Conferences and Trade Fair Exhibitions held in Vancouver every two years and organized by the not-for-profit GLOBE Foundation.
In 2012, the company's President and CEO, Dr. John Wiebe, was recognized as one of Canada's "Clean 16" for his outstanding contributions to clean capitalism.
Our philosophy? Environmental challenges bring enormous opportunity for the business sector. Moreover, companies can do well by doing good for the environment, without sacrificing their bottom lines.
Our three guiding principles:
-Environmental problems are business opportunities.
-Companies that can provide clean technologies and solutions will prosper.
-Proactive organizations that embrace environmental sustainability will be more competitive.
2017 GRESB Real Estate Results - North AmericaGRESB
2017 GRESB Real Estate Results presentation for Europe, presented on 19 September in New York, hosted by J.P. Morgan Asset Management
CBRE: Slide 29
GRESB Health & Well-being: Slide 39
S&P Dow Jones Indices: Slide 53
The Private Equity Play by Mike LorelliMike Lorelli
The Private Equity Play is a comprehensive overview on how the private equity model works: what’s in it for the Limited Partners, the private equity firm, and portfolio company management. You don’t need to be on the buy side or sell side of the private equity equation to find this presentation of value and interest. It will broaden everyone’s understanding of this major component of the capital markets.
The concept and the practice of Impact Investing—or the placement of capital with
intent to generate positive social impact beyond fi nancial return—have grown and
matured signifi cantly over the past fi ve years. In 2008, the Monitor Institute took stock
of the emerging industry and characterized it as being on the precipice of passing from
a stage of “uncoordinated innovation” into one of “marketplace building.” Since 2008,
the Rockefeller Foundation has sought to help build that marketplace as well as hold
it accountable for its social and environmental impact goals. We have helped to build
networks, develop social impact ratings and reporting standards, cultivate new and
larger intermediaries and contribute to research and enabling policy environments.
“Industry building” is not often the remit of foundations, but our rationale for doing
so was clear: a functioning impact investing industry has the potential to complement
government and philanthropy by unlocking signifi cant resources to address the world’s
most pressing problems and to improve the lives of poor and vulnerable people.
Four years later, and as part of our commitment to learning and accountability within
the Foundation and to our partners and stakeholders, we undertook an independent
evaluation of our work in this arena. In March 2012, we presented to our Board the
results of this evaluation, undertaken by E.T. Jackson and Associates. It highlighted
a number of early successes and remaining challenges, many of which will shape our
activities in the months and years to come. As part of its evaluation, E.T. Jackson also
undertook a global scan of impact investing activity over the past four years so that
we could assess our progress in relation to the evolution of the broader fi eld. We
believe the results of the scan will also be informative for a number of other current
and future industry participants, and we are proud to contribute it to the growing
body of evaluative knowledge and research in this fi eld.
It is clear from our evaluation and scan, and from the growing body of research on
impact investing, that there exists great momentum and inspiring leadership in this
dynamic fi eld. More signifi cantly, there are promising signs here that together we can
play an important role in bringing about a more sustainable, resilient and equitable
future for humankind. We are honored to work with all of you on this journey.
Accelerating Impact: Achievements, Challenges and What's Next in Building the...The Rockefeller Foundation
Accelerating Impact, a report prepared by E.T. Jackson and Associates and commissioned by The Rockefeller Foundation as part of a third-party evaluation of our Impact Investing initiative, provides one of the most recent and comprehensive scans of the global impact investing industry to date. The research is informed in part by insights from interviews with more than 100 impact investing leaders from 11 countries.
The report examines the evolution of the field over the past four years as well as its current status, reflecting that the field has moved decisively from a phase of “uncoordinated innovation” to one of sustained “marketplace-building.” The report concludes by offering recommendations to industry leaders regarding the challenges and opportunities that may lie ahead.
2017 GRESB Real Estate Results presentation for Canada, presented on 5 October in Toronto, hosted by Oxford Properties, with Industry Partners REALPAC and CaGBC, and sponsored by GRESB Global Partner Delos
Slide 36: WSP
Slide 45: Delos
Side 72: Quinn & Partners
A brief introduction with some examples.
Slide presentations developed to demonstrate how Information and Communication Technologies (ICTs) be used to address climate change, and why ICTs are a crucial part of the solution – i.e. in promoting efficiency, Green Growth & sustainable development, in dealing with climate change and for climate and environmental action. These slide presentations were delivered in February 2011 in Seongnam, near Seoul in Korea.
These presentations were developed and delivered over 2.5 days on the occasion of a Regional Training of Trainers Workshop for upcoming Academy modules on ICT for Disaster Risk Management and Climate Change Abatement. These modules were developed as part of the Academy of ICT Essentials for Government leaders developed by the United Nations (UN) Asia Pacific Centre for ICT Training (APCICT), based in Songdo City, in the Republic of South Korea.
These presentations were developed in 2011, and are somewhat out of date, but most of the principles still apply. Module 10, which has been published, does not include much of the information outlined in these presentations, which are fairly technical. They were developed to address a significant gap in understanding of the technical basis of using ICTs for climate action and because there is a clear bias in development circles against the importance of dealing with climate change mitigation in developing countries. These presentations are an attempt to redress this lack and are published here with this purpose in mind.
The author, Richard Labelle, is presently working on updating these presentations to further highlight the importance of addressing climate change and the important role that technology including ICTs, play in this effort.
rot20477_fm_i-xxvii.indd i 120815 0459 PMTHIRD EDI.docxdaniely50
rot20477_fm_i-xxvii.indd i 12/08/15 04:59 PM
THIRD EDITION
Frank T. Rothaermel
Georgia Institute of Technology
Strategic
Management
Final PDF to printer
rot20477_fm_i-xxvii.indd iii 12/08/15 04:59 PM
To my eternal family for their love, support, and sacrifice: Kelleyn, Harris,
Winston, Roman, Adelaide, and Avery
—FRANK T. ROTHAERMEL
DEDICATION
Final PDF to printer
iv
rot20477_fm_i-xxvii.indd iv 12/08/15 04:59 PM
PART ONE / ANALYSIS 2
CHAPTER 1 What Is Strategy? 4
CHAPTER 2 Strategic Leadership: Managing the Strategy Process 32
CHAPTER 3 External Analysis: Industry Structure, Competitive Forces, and Strategic
Groups 64
CHAPTER 4 Internal Analysis: Resources, Capabilities, and Core Competencies 104
CHAPTER 5 Competitive Advantage, Firm Performance, and Business Models 140
PART TWO / FORMULATION 172
CHAPTER 6 Business Strategy: Differentiation, Cost Leadership, and Blue Oceans 174
CHAPTER 7 Business Strategy: Innovation and Entrepreneurship 208
CHAPTER 8 Corporate Strategy: Vertical Integration and Diversification 252
CHAPTER 9 Corporate Strategy: Strategic Alliances, Mergers and Acquisitions 294
CHAPTER 10 Global Strategy: Competing Around the World 326
PART THREE / IMPLEMENTATION 362
CHAPTER 11 Organizational Design: Structure, Culture, and Control 364
CHAPTER 12 Corporate Governance and Business Ethics 400
PART FOUR / MINICASES 427
HOW TO CONDUCT A CASE ANALYSIS 516
PART FIVE / FULL-LENGTH CASES All available through McGraw-Hill Create,
www.McGrawHillCreate.com/Rothaermel
CONTENTS IN BRIEF
Final PDF to printer
v
rot20477_fm_i-xxvii.indd v 12/08/15 04:59 PM
MINICASES /
1 Michael Phelps: Strategy Formulation &
Implementation 428
2 Teach for America: How to Inspire Future Leaders 430
3 PepsiCo’s Indra Nooyi: Performance with Purpose 432
4 How the Strategy Process Kills Innovation
at Microsoft 435
5 Strategy and Serendipity: A Billion-Dollar Business 438
6 Apple: What’s Next? 440
7 Starbucks: Schultz Serves Up a Turnaround 443
8 Nike’s Core Competency:
The Risky Business of Fairy Tales 446
9 When Will P&G Play to Win Again? 449
10 Trimming Fat at Whole Foods Market 452
11 Is Porsche Killing the Golden Goose? 454
12 LEGO’s Turnaround: Brick by Brick 457
13 From Good to Great to Gone:
The Rise and Fall of Circuit City 460
14 Cirque du Soleil: Searching for a New Blue Ocean 462
15 Competing on Business Models: Google vs. Microsoft 465
16 Assessing Competitive Advantage: Apple vs.
Blackberry 469
17 Wikipedia: Disrupting the Encyclopedia Business 475
18 Standards Battle: Which Automotive Technology Will
Win? 478
19 “A” Is for Alphabet and “G” Is for Google: Alphabet’s
Corporate Strategy and Google’s Strategy Process 480
20 HP’s Boardroom Drama and Divorce 484
21 Hollywood Goes Global 488
22 Does GM’s Future Lie in China? 492
23 Flipkart Is Fulfilling Its Wish and Beating
Amazon.com 494
24 LVMH in China: Cracks Its Empire of Desire? 497
25 Sony vs. Apple: Whatever Happened.
The purpose of this paper is to begin the process of clarifying global asset value especially as may be affected by the sustainability (or lack thereof) of financial systems, and not just that which is represented by institutional assets under management. This paper, therefore, will answer this question of what is the actual total value of all global asset classes individually and in aggregate, towards helping inform money flows as they relate to this overall global stock, and how do they or can they influence total value, as well as how should these stocks and flows shift to enable the financial system to become truly sustainable and how to measure for that.
2017 GRESB Real Estate Results - North AmericaGRESB
2017 GRESB Real Estate Results presentation for Europe, presented on 19 September in New York, hosted by J.P. Morgan Asset Management
CBRE: Slide 29
GRESB Health & Well-being: Slide 39
S&P Dow Jones Indices: Slide 53
The Private Equity Play by Mike LorelliMike Lorelli
The Private Equity Play is a comprehensive overview on how the private equity model works: what’s in it for the Limited Partners, the private equity firm, and portfolio company management. You don’t need to be on the buy side or sell side of the private equity equation to find this presentation of value and interest. It will broaden everyone’s understanding of this major component of the capital markets.
The concept and the practice of Impact Investing—or the placement of capital with
intent to generate positive social impact beyond fi nancial return—have grown and
matured signifi cantly over the past fi ve years. In 2008, the Monitor Institute took stock
of the emerging industry and characterized it as being on the precipice of passing from
a stage of “uncoordinated innovation” into one of “marketplace building.” Since 2008,
the Rockefeller Foundation has sought to help build that marketplace as well as hold
it accountable for its social and environmental impact goals. We have helped to build
networks, develop social impact ratings and reporting standards, cultivate new and
larger intermediaries and contribute to research and enabling policy environments.
“Industry building” is not often the remit of foundations, but our rationale for doing
so was clear: a functioning impact investing industry has the potential to complement
government and philanthropy by unlocking signifi cant resources to address the world’s
most pressing problems and to improve the lives of poor and vulnerable people.
Four years later, and as part of our commitment to learning and accountability within
the Foundation and to our partners and stakeholders, we undertook an independent
evaluation of our work in this arena. In March 2012, we presented to our Board the
results of this evaluation, undertaken by E.T. Jackson and Associates. It highlighted
a number of early successes and remaining challenges, many of which will shape our
activities in the months and years to come. As part of its evaluation, E.T. Jackson also
undertook a global scan of impact investing activity over the past four years so that
we could assess our progress in relation to the evolution of the broader fi eld. We
believe the results of the scan will also be informative for a number of other current
and future industry participants, and we are proud to contribute it to the growing
body of evaluative knowledge and research in this fi eld.
It is clear from our evaluation and scan, and from the growing body of research on
impact investing, that there exists great momentum and inspiring leadership in this
dynamic fi eld. More signifi cantly, there are promising signs here that together we can
play an important role in bringing about a more sustainable, resilient and equitable
future for humankind. We are honored to work with all of you on this journey.
Accelerating Impact: Achievements, Challenges and What's Next in Building the...The Rockefeller Foundation
Accelerating Impact, a report prepared by E.T. Jackson and Associates and commissioned by The Rockefeller Foundation as part of a third-party evaluation of our Impact Investing initiative, provides one of the most recent and comprehensive scans of the global impact investing industry to date. The research is informed in part by insights from interviews with more than 100 impact investing leaders from 11 countries.
The report examines the evolution of the field over the past four years as well as its current status, reflecting that the field has moved decisively from a phase of “uncoordinated innovation” to one of sustained “marketplace-building.” The report concludes by offering recommendations to industry leaders regarding the challenges and opportunities that may lie ahead.
2017 GRESB Real Estate Results presentation for Canada, presented on 5 October in Toronto, hosted by Oxford Properties, with Industry Partners REALPAC and CaGBC, and sponsored by GRESB Global Partner Delos
Slide 36: WSP
Slide 45: Delos
Side 72: Quinn & Partners
A brief introduction with some examples.
Slide presentations developed to demonstrate how Information and Communication Technologies (ICTs) be used to address climate change, and why ICTs are a crucial part of the solution – i.e. in promoting efficiency, Green Growth & sustainable development, in dealing with climate change and for climate and environmental action. These slide presentations were delivered in February 2011 in Seongnam, near Seoul in Korea.
These presentations were developed and delivered over 2.5 days on the occasion of a Regional Training of Trainers Workshop for upcoming Academy modules on ICT for Disaster Risk Management and Climate Change Abatement. These modules were developed as part of the Academy of ICT Essentials for Government leaders developed by the United Nations (UN) Asia Pacific Centre for ICT Training (APCICT), based in Songdo City, in the Republic of South Korea.
These presentations were developed in 2011, and are somewhat out of date, but most of the principles still apply. Module 10, which has been published, does not include much of the information outlined in these presentations, which are fairly technical. They were developed to address a significant gap in understanding of the technical basis of using ICTs for climate action and because there is a clear bias in development circles against the importance of dealing with climate change mitigation in developing countries. These presentations are an attempt to redress this lack and are published here with this purpose in mind.
The author, Richard Labelle, is presently working on updating these presentations to further highlight the importance of addressing climate change and the important role that technology including ICTs, play in this effort.
rot20477_fm_i-xxvii.indd i 120815 0459 PMTHIRD EDI.docxdaniely50
rot20477_fm_i-xxvii.indd i 12/08/15 04:59 PM
THIRD EDITION
Frank T. Rothaermel
Georgia Institute of Technology
Strategic
Management
Final PDF to printer
rot20477_fm_i-xxvii.indd iii 12/08/15 04:59 PM
To my eternal family for their love, support, and sacrifice: Kelleyn, Harris,
Winston, Roman, Adelaide, and Avery
—FRANK T. ROTHAERMEL
DEDICATION
Final PDF to printer
iv
rot20477_fm_i-xxvii.indd iv 12/08/15 04:59 PM
PART ONE / ANALYSIS 2
CHAPTER 1 What Is Strategy? 4
CHAPTER 2 Strategic Leadership: Managing the Strategy Process 32
CHAPTER 3 External Analysis: Industry Structure, Competitive Forces, and Strategic
Groups 64
CHAPTER 4 Internal Analysis: Resources, Capabilities, and Core Competencies 104
CHAPTER 5 Competitive Advantage, Firm Performance, and Business Models 140
PART TWO / FORMULATION 172
CHAPTER 6 Business Strategy: Differentiation, Cost Leadership, and Blue Oceans 174
CHAPTER 7 Business Strategy: Innovation and Entrepreneurship 208
CHAPTER 8 Corporate Strategy: Vertical Integration and Diversification 252
CHAPTER 9 Corporate Strategy: Strategic Alliances, Mergers and Acquisitions 294
CHAPTER 10 Global Strategy: Competing Around the World 326
PART THREE / IMPLEMENTATION 362
CHAPTER 11 Organizational Design: Structure, Culture, and Control 364
CHAPTER 12 Corporate Governance and Business Ethics 400
PART FOUR / MINICASES 427
HOW TO CONDUCT A CASE ANALYSIS 516
PART FIVE / FULL-LENGTH CASES All available through McGraw-Hill Create,
www.McGrawHillCreate.com/Rothaermel
CONTENTS IN BRIEF
Final PDF to printer
v
rot20477_fm_i-xxvii.indd v 12/08/15 04:59 PM
MINICASES /
1 Michael Phelps: Strategy Formulation &
Implementation 428
2 Teach for America: How to Inspire Future Leaders 430
3 PepsiCo’s Indra Nooyi: Performance with Purpose 432
4 How the Strategy Process Kills Innovation
at Microsoft 435
5 Strategy and Serendipity: A Billion-Dollar Business 438
6 Apple: What’s Next? 440
7 Starbucks: Schultz Serves Up a Turnaround 443
8 Nike’s Core Competency:
The Risky Business of Fairy Tales 446
9 When Will P&G Play to Win Again? 449
10 Trimming Fat at Whole Foods Market 452
11 Is Porsche Killing the Golden Goose? 454
12 LEGO’s Turnaround: Brick by Brick 457
13 From Good to Great to Gone:
The Rise and Fall of Circuit City 460
14 Cirque du Soleil: Searching for a New Blue Ocean 462
15 Competing on Business Models: Google vs. Microsoft 465
16 Assessing Competitive Advantage: Apple vs.
Blackberry 469
17 Wikipedia: Disrupting the Encyclopedia Business 475
18 Standards Battle: Which Automotive Technology Will
Win? 478
19 “A” Is for Alphabet and “G” Is for Google: Alphabet’s
Corporate Strategy and Google’s Strategy Process 480
20 HP’s Boardroom Drama and Divorce 484
21 Hollywood Goes Global 488
22 Does GM’s Future Lie in China? 492
23 Flipkart Is Fulfilling Its Wish and Beating
Amazon.com 494
24 LVMH in China: Cracks Its Empire of Desire? 497
25 Sony vs. Apple: Whatever Happened.
The purpose of this paper is to begin the process of clarifying global asset value especially as may be affected by the sustainability (or lack thereof) of financial systems, and not just that which is represented by institutional assets under management. This paper, therefore, will answer this question of what is the actual total value of all global asset classes individually and in aggregate, towards helping inform money flows as they relate to this overall global stock, and how do they or can they influence total value, as well as how should these stocks and flows shift to enable the financial system to become truly sustainable and how to measure for that.
1. Edited by Cary Krosinsky
with Nick Robins & Stephen Viederman
Evolutions in
Sustainable
InvestingStrategies, Funds, and Thought Leadership
2. P1: TIX/XYZ P2: ABC
JWBT558-fm JWBT558-Krosinsky August 6, 2011 9:42 Printer: Yet to Come
Contents
Acknowledgments xix
About the Editor xxi
About the Contributors xxiii
Introduction xxxv
CHAPTER 1
The Sustainability Imperative 1
David A. Lubin and Daniel C. Esty
Sustainability: A Business Megatrend 1
Getting the Vision Right 3
Getting the Execution Right 4
Building a Sustainability Performance System 6
Summary 8
Note 9
CHAPTER 2
Jupiter Ecology 11
Mark L. Trevitt
Roots of the Fund 11
Jupiter Ecology’s Investment Process 12
Good Governance 16
Building a Following 17
Building on Firm Foundations 18
Assessing Companies for the Long Term 19
Voting and Engagement: Participating in the Process of Change 20
Finding Great Green Companies 21
Fund Performance 24
Notes 25
vii
3. P1: TIX/XYZ P2: ABC
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viii CONTENTS
CHAPTER 3
A Predictor of Performance 27
Paul Hawken
Investment in Natural Capitalism 27
Discovering Opportunities 28
Identifying the Companies of the Future 30
Summary 32
CHAPTER 4
Highwater Global 35
Alexis van Gelder, Dean Martucci, and Erika Kimball
Hawken Takes on Domini 36
Fund Drivers Based on Global Sustainable Themes 38
Finding Investment Opportunities 38
Sustainable Investing Is Responsible Investing 44
Summary 45
Notes 46
CHAPTER 5
Further Context 47
Cary Krosinsky
Starting Point for Measuring Sustainability 48
Sustainability 2.0’s Five Factors 49
Summary 51
Notes 51
CHAPTER 6
Sustainable Asset Management 53
Thomas O. Murtha and Ashley Hamilton
SAM’s Origins and Evolution 54
Building a Sustainable Investing Practice: Basic Business
Segments 56
Measuring Intangibles: Sustainability Research Methodology 57
Sustainability Lens: Active Portfolio Management 62
SAM and Performance 63
SAM’s Extended Family: Dow Jones Sustainability Indexes 66
Sustainability Advocacy and Company Engagement 74
Summary 76
Notes 77
4. P1: TIX/XYZ P2: ABC
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Contents ix
CHAPTER 7
Domini and BP 81
Colm Fay
Domini Social Investments 83
Safety, Environmental, and Ethical Concerns 84
Domini Investment Philosophy 84
Business Model Analysis: Key Performance Indicator
Alignment Model 85
Integrating Business Model Alignment and Stakeholder
Relationship Strength 87
Notes 90
CHAPTER 8
The Story of Calvert 91
Sam Brownell and Sara Herald
Unconventional History 91
Calvert’s People 93
Calvert’s Methodologies: Signature, Solution, and SAGE 96
Calvert’s Performance 102
Summary 105
Notes 106
CHAPTER 9
Winslow 107
Amrita Vijay Kumar
Blazing a Trail 107
Investment Process 108
Performance Considerations 112
Summary 112
Notes 113
CHAPTER 10
Portfolio 21 115
Ashley Hamilton
Portfolio 21: A History 116
Theory of Sustainability and Change 117
In Search of Forward-Looking Companies 119
Results 120
Summary 121
Notes 122
5. P1: TIX/XYZ P2: ABC
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x CONTENTS
CHAPTER 11
Northwest and Ethical Investments 123
Dana Krechowicz
Humble Beginnings 124
New Direction 124
Evolving Investment Approach 126
Corporate Engagement Program 128
Key Products and Performance over Time 130
Looking Forward: NEI’s Merger with Northwest Funds 131
Note 132
CHAPTER 12
Looking for a Green Century: Passive-Indexed versus Active Portfolio
Management 133
Fernando Viana
Background 134
Green Century Funds 134
Green Century Equity Fund 135
Trillium Asset Management and the Balanced Fund 136
Trillium Asset Management Corporation 137
Carbon Footprint of the Balanced Fund 140
Seeking Safer Packaging: The Bisphenol-A
Report 140
Shareholder Advocacy 141
Summary 144
Notes 144
CHAPTER 13
Pictet Water 145
Jenna Manheimer and Nancy Degnan
Evolution of Investment Strategy over Time: Original versus
Current Mission 147
Founders and Key Decision Makers 148
Methodology 149
Metrics: What Is Important and Why 150
Pictet’s Investments 151
Companies Pictet Has Not Invested in, and Why 153
Performance Review 154
Summary 155
Notes 155
6. P1: TIX/XYZ P2: ABC
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Contents xi
CHAPTER 14
Inflection Point Capital Management and Strategically Aware Investing 159
Matthew J. Kiernan
Strategically Aware Investing 161
Beyond Environmental, Social, and Governance toward a New
Model of Corporate Sustainability 162
Portfolio Construction 163
Investment Process 164
Summary 167
Note 167
CHAPTER 15
Environmental Metrics 169
James Salo
Theoretical and Practical Needs for Sustainable Investment 170
Available Data and Metrics 172
Challenges and Opportunities Moving Forward 175
Summary 178
Notes 179
CHAPTER 16
Crawford Chemicals 181
Thomas J. Nist, Pavel Yakovlev, and Becky Weisberg
Crawford’s Environmental Dilemma 182
Markets for Carbon Permits and Cap and Trade 185
European Union Emissions Trading Scheme 188
Pros and Cons of the Market for Carbon Permits 190
Predicament of Sustainability in the Chemical Industry 193
Summary 199
Notes 199
CHAPTER 17
Using Statistical Tools 203
Sam Brownell
Understanding the Trend 205
Summary 206
Notes 209
CHAPTER 18
Barriers to Sustainable Investing 211
Stephen Viederman
Missing Planet Problem 212
7. P1: TIX/XYZ P2: ABC
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xii CONTENTS
Overcoming the Barriers 213
Strategy and Tactics 214
Notes 215
CHAPTER 19
The Silent “S” in ESG 217
Dan Viederman
Assessing Social Metrics to Increase Business Performance 218
Risk Management 218
Summary 220
CHAPTER 20
Sustainable Investing 221
Nancy Degnan
The New Normal 222
Climate Change Mitigation, Adaptation and Sustainability
Research 222
Adaptation as Key to Investment and Practice 224
Ecosystem Services 226
Making Use of Data and Findings 227
Summary 230
Notes 230
CHAPTER 21
Bloomberg 235
Curtis Ravenel
Providing Investor Insight and Increasing Transparency 236
Summary 238
Notes 239
CHAPTER 22
Aviva 241
Malte Griess-Nega and Nick Robins
Aviva’s History and Investment Philosophy 242
Aviva’s SRI Investment Process 242
SRI Portfolio Construction 246
Case Study 1: Green Tires 246
Case Study 2: The Responsible Supply Chain 248
Engagement Across All Asset Classes 249
Conclusion 251
Notes 251
8. P1: TIX/XYZ P2: ABC
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Contents xiii
CHAPTER 23
Generation Investment Management 253
Malte Griess-Nega and Nick Robins
A New Model for Global Equities 254
Summary 258
Notes 259
CHAPTER 24
Insight Investment: Reflections and Lessons Learned from
Integrating Sustainability 261
Rory Sullivan
About Insight 262
Investment Research on ESG Issues 263
Case Study: Climate Change 266
Case Study: European Electricity Utilities 267
Case Study: Biofuels 268
Reflections/Takeaways from the Case Studies 269
Summary 274
Notes 274
CHAPTER 25
China 277
J. Jason Mitchell
China’s Resource Scarcity and Its Empirical Need
for Efficiency 280
Shaping Chinese Energy-Efficiency Norms 288
Chinese Policy Setting 290
Translating China’s Environmental Policies into Industrial
Opportunities 292
Summary 296
Notes 297
CHAPTER 26
Ethical Asia 301
Simon Powell
Reporting Is on the Rise 302
CSR Works when Companies and Society Are Aligned 305
Focuses in Asia: Labor and Environment 306
Summary 310
9. P1: TIX/XYZ P2: ABC
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xiv CONTENTS
CHAPTER 27
Mitigating ESG Risk in Asian Portfolios 313
Lucy Carmody and Laura Dodge
The Challenge: Lack of Disclosure 314
ESG Integration in Asian Portfolios 315
Funding ESG Research 317
Building Institutional Capacity 318
Use of Indices, Benchmarking, and Screening 319
Summary 320
Notes 320
CHAPTER 28
Sustainable Investing and Canada 323
Dana Krechowicz and Alex Wood
The Basics 324
Growth of Canada’s Sustainable Investment Industry 325
Context and Trends 325
Summary 327
Notes 327
CHAPTER 29
High-Risk Areas, Resources and Sustainability 329
N.A.J. Taylor
Blacklisted 330
Background 331
Enter Rio Tinto 336
Ordinary Business Activities 339
Summary 342
Notes 342
CHAPTER 30
Sustainable Investing in Africa’s Frontier Markets 345
Graham Sinclair and Roselyne Yao
Stronger Economics: The Case for Investing in Africa 346
Sustainability Issues in Africa 348
Role of Indexes 350
International Exposure 350
Future Trends: ESG, Media Coverage, and Networks 352
Summary 353
Notes 354
10. P1: TIX/XYZ P2: ABC
JWBT558-fm JWBT558-Krosinsky August 6, 2011 9:42 Printer: Yet to Come
Contents xv
CHAPTER 31
Evolution of ESG in India 359
Sumantra Sen
Sustainability Issues in India 359
Opportunities in India’s Sustainable Investing Market 361
Considering the Integration of ESG Factors 362
Summary 363
References 364
CHAPTER 32
Indexes 365
Graham Sinclair
The “What” and “Why” of Indexes 366
Index Architecture 369
Research Quality and Independence 372
Lessons from the Leading Sustainability Indexes 373
Company Reactions to Indexes and Their Impacts 378
Summary 380
Notes 381
CHAPTER 33
How Asset Owners Can Achieve a Sustainable Investing Framework 383
Roger Urwin
Importance of Values and Beliefs 384
Integrated Allocations and Targeted Allocations 385
Risk Factors and ESG Beta 386
Quantitative Methods of Risk and Return 388
Monitoring Framework 389
Summary 391
Notes 392
CHAPTER 34
On Performance 393
Bud Sturmak and Cary Krosinsky
SRI Techniques 394
ESG Affects Investment Performance 395
Trends from Performance Reports 396
Summary 398
Notes 398
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xvi CONTENTS
CHAPTER 35
Private Equity 401
Graham Sinclair
Private Equity as a Niche of General Asset Management 402
PE’s Fit within Sustainable Investing 404
Development Finance Institutions Leverage of Emerging
Markets Private Equity 405
PE-Specific ESG Methods 406
PE Best Practices and ESG Case Studies 408
Contrasting PE and Listed Equity Investors 409
New SI Activity in the PE Asset Class 410
PE Allocations Increase 410
Increased PE Funds Focused on Emerging Markets 411
Future Sustainability Themes in PE 412
Summary 413
Notes 414
CHAPTER 36
Blue Wolf: Implications for Private Equity 417
Adam Blumenthal and Michael Musuraca
Challenges and Opportunities 419
Generating Results 420
Labor Relations Coda 421
Summary 422
CHAPTER 37
New Business Models, Measurement, and Methodologies 423
Howard Brown
Resources and Products versus Wealth 425
Trend of Doing More with Less 426
Improving Overall Performance 426
Summary 427
CHAPTER 38
Terminology and Intention 429
Lloyd Kurtz
Values 430
Financial Performance 432
Fiduciary Duty: Universal Ownership 433
Impact 435
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Contents xvii
Mapping Techniques to Motivation 436
Summary 437
Notes 438
CONCLUSION
441Cary Krosinsky
Notes 446
APPENDIX A
Sample Curriculum 447
Syllabus 447
APPENDIX B
Investors 453
Index 455
