1.
Redesigning Finance:Pathways to a Resilient Future San Francisco, CA August 9, 2012 http://pricetags.files.wordpress.com/2008/04/800px-london_millenium_wobbly_bridge1.jpg

2.
1. Context:Not your grandmother’s SRI/ESG talk2. Long View Implications for Investors:This time IS different3. Public Policy Implications:Not for today

3.
Anyone who believesexponential growth can go onforever in a finite world is eithera madman or an economist. - Kenneth Boulding , Economist, Quaker, Co-Creator of General Systems Theor y

4.
The most powerful force in theuniverse is compound interest. - AlbertEinstein*

5.
May 30, 2011

6.
Exponential growth leads to ecosystem crisis”Safe Operating Space”, J. Rockstrom, National Center for Ecological Analysis and Synthesis

7.
Ecological Overshoot: We use 1.5 planets ”Footprint Network.org

8.
We know what sustainability looks likeSustainability Optimum100% Collapse of 0% Financial System Resilience Efficiency Source: Lietaer, Ulanowicz, Goerner 2008

9.
Economic What’sDesiredwith this picture? wrong Outcome Efficiency Finance Economy Planet

10.
Lost in finance: So clever, so ignorant Our economy has become an anti- economy, a financial system without a sound economic basis and without economic virtues. - Wendell Berry

11.
Money, Banking, Finance & Investment: Designed for growth

12.
Landing the plane will be a turbulent affair

13.
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 choiceSource: Potsdam Institute and “Unburnable Carbon”, Carbon Tracker Report

14.
$20 Trillion of denial goes a long way…

15.
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?

16.
Financial reform: Rearranging deckchairs May 26, 2011

17.
1. Context:Not your grandmother’s SRI/ESG talk2. Long View Implications for Investors:This time IS different

18.
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

19.
What’s different this time • Schumpeter’s “creative destruction” on steroids • MPT built on flawed assumptions • Index benchmarking and tracking strategies exposed • Diversification often a mirage

20.
ESG framework: Integrated reportingUnparalleled Leadership: Jochen Zeitz2010 Earnings: Euro 202mm2010 “E P&L”: (Euro 145 mm)

21.
Investment principles for theAnthropocene • Long run versus trading • Reassert owner responsibility: Active concentrated ownership of resilient cash flow/dividends • Diversify systemic risks across asset classes

22.
5 Investment themes for the Anthropocene 1. Low carbon energy infrastructure - $100 Trillion over 20 years 2. Regenerative enterprise 3. Technology 4. Emerging markets 5. Distress/opportunistic

23.
“It’s all a question of story. We are in trouble nowbecause we do not have a good story.” - Thomas Berry

24.
Investment is the bridge to the economywe need. And the steering wheel. We are called to be the architects of the future, not its victims. - R. Buckminster Fuller

25.
Thank you