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: Potsdam Institute and “Unburnable Carbon”, Carbon Tracker Report
Ecological overshoot = Financial Overshoot
What’s the off balance sheet ecological debt?
What’s the P/E of a “steady state” economy?
What’s the debt capacity of the steady state?
What’s the unfunded pension liability of a SS?
The sustainable payout of a SS endowment?
Not your grandmother’s SRI/ESG talk
2. Long View Implications for Investors:
This time IS different
Towards a Regenerative Economy
• Holistic frame: nature as model
• Redefine wealth: natural/social capital
• The humble retreat of finance
• Public interest in capital investment:
All investment has IMPACT
What’s different this time
• Schumpeter’s “creative destruction”
• MPT built on flawed assumptions
• Index benchmarking and tracking
• Diversification often a mirage
Investment principles for the
• Long run versus trading
• Reassert owner responsibility: Active
concentrated ownership of resilient cash
• Diversify systemic risks across asset
5 Investment themes for the Anthropocene
1. Low carbon energy infrastructure -
$100 Trillion over 20 years
2. Regenerative enterprise
4. Emerging markets
“It’s all a question of story. We are in trouble now
because we do not have a good story.” - Thomas Berry
Investment is the bridge to the economy
we need. And the steering wheel.
We are called to be the architects
of the future, not its victims.
- R. Buckminster Fuller
Vision: a world in which finance serves a just, resilient, and sustainable economic system.Reform and Transform the financial systemMission: 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.