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The Inventors. www. unepfi.net. 01/09/2014. Capital. Other Suppliers. Customers. Company. Talent. Compan ies Compete in 4 Markets…. Capital. Other Suppliers. Customers. Company. Community. Talent. Government. …Plus 2 Quasi Markets. Invention. Invention. An Invention...
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The Inventors www.unepfi.net 01/09/2014
Capital OtherSuppliers Customers Company Talent Companies Compete in 4 Markets…
Capital OtherSuppliers Customers Company Community Talent Government …Plus 2 Quasi Markets
An Invention... In finance a new invention quickly actioned and developed with vigilance will...
...An Invention Developed. ...Distinguish the Inventor, Win and retain clients, Build reputation.
Ingredients for invention: Knowledge. Action. Vigilance.
Why Knowledge? Knowledge gives us context. What knowledge is important to the financial context?
"Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." - Capitalism and Freedom p.133 But can this be found only in company financials?
Nevertheless, the liability concerns spread to the Swiss-Swedish engineering giant ABB, and to the maker of Jiffy bags and Bubble Wrap, Sealed Air, as well as to the media giant Viacom and the forest products company Georgia-Pacific. All these firms saw up to 10% of their stock market value vanish. "[Investors] are worried about owning stocks with exposure to asbestos," said Mr Zaret. "They see a long line of dead bodies and they're scared. - BBC News.
Citi Halves Bankers' BonusesBy K.C. SwansonStaff Reporter02/14/2003 07:51 PM EST Leading financial services outfit Citigroup has slashed its investment bankers' bonuses by up to half, according to a published report. The news comes only two days after CEO Sanford Weill said he would give up any 2002 bonus, in light of the company's poor stock performance. Shares of the bank lost a quarter of their value last year, amid claims of biased research and charges that the firm had engaged in unethical behavior related to Enron.
24 12 11 7 7 7 6 6 4 3 2 2 1 1 1 1 0 0 Competitive Wrong Products Customer Losses R&D Delays Cost Overrun Poor Management Foreign Economic Issues Interest Rates Natural Disaster Demand Shortfall Merger Problem Pricing Pressure Regulation Supplier Problems Accounting Problems Supply Chain Issues High Input Prices Lawsuits Strategic 58% Operational 31% Financial 6% Hazard 0% Risk Management From 1996 to 2000, 10% of the Fortune 1000 lost over 25% of its shareholder value within a one-month period. Many of these loses can be attributed directly or indirectly to non-financial issues. 25 Source: Mercer Management Consulting (2000) 20 15 10 5 0
This knowledge tells us there is a need for invention. Banks need to understand the other 89 % to protect their clients. But what invention?
Sustainable Finance is about meeting this need by: Demanding Knowledge, Demanding Performance, Providing Invention, Providing Vigilance, In order to produce performance.
Sustainable finance is an Invention arising from the need for better knowledge of how companies perform in all of their markets. Access to sustainable knowledge can help financial managers, lenders and investors, make less risky decisions, provide more exact and sophisticated services to clients than the competition, and stabilize and grow an economy as a whole. But how does one action it here?
That is why you, the inventors, are here today! Your knowledge of local conditions is indispensible. You have the advantage and power to decide on the best local mechanisms for making sustainable finance work.
"We look up. For weeks, for months, that is all we have done. Look up. And there it is -- the top of Everest. Only it is different now: so near, so close, only a little more than a thousand feet above us. It is no longer just a dream, a high dream in the sky, but a real and solid thing. -- Tenzing Norgay, Tiger of the Snows Acting First.
Action in Europe. Where are they looking...
Sustainability is a new concept in finance here but not everywhere. In this market, will it be your invention? Or Someone else‘s?
Thank you very much, and best of luck today!