philipp schoeller - deutsche gesellschaft club of rome

SUSTAINABLE INVESTMENTS INSPIRING

CORPORATE SUSTAINABILITY

OR VICE VERSA?

© Philipp A. Schoeller, Member of the Executive Committee German Society Club of Rome, November 2016

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30 YEARS AFTER TRUMP – IMPACT ON BERLIN…

© Philipp A. Schoeller, November 2016

3© Philipp A. Schoeller, November 2016

US IN DENIAL – WAKE-UP CALL FOR EUROPEINCREASED RESPONSIBILITY FOR COR

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SUSTAINABLE INVESTMENTS (SI) AND CORPORATE SUSTAINABILITY (CS):

COMBINED IT’S”SICS ”…TO TWELVE


Our “timer” isticking…. …and mankind

might run out oftime.

BIOSPHERE – ONLY 20KM THIN

Biosphere: ¾ 11,034m max. ocean depth (Mariana Trench)¾ 8,848m max. surface height (Mount Everest)

19,882m i.e. 20km


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…we aremerely living

in themembrane

of a balloon


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FUTURE GENERATIONS WILL SAY“THE DARK AGES OF THE OIL BURNERS” EVERY 3 DAYS CO2 PRODUCTION FILLS LAKE CONSTANCE – RELEASING IT INTO OUR FRAGILE “8848m”–ATMOSPHERE


200,000 swimming pools* CO2 per DAY! oil consumption of 97m bbl/day expands into 1000x the CO2 volume

* Average size of a typical garden pool: 8m x 4m x 1.5m

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TRY TO KEEP AN ICE CUBE FROM MELTINGUNDER OUR HOT „CO2-BLANKET“: EARTH WITHOUT ICE? SEA LEVEL AT + 66M

88mapsontheweb.zoom-maps.com


SICS vital for survival!

What's working?

What isn’t working?

Action!


!

SUSTAINABLE INVESTMENTS TURNED MAINSTREAM – UN PRINCIPLES OF RESPONSIBLE INVESTMENT

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NEGATIVE SCREENING OR INVESTMENT EXCLUSION AT WORK


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NEGATIVE SCREENING OR INVESTMENT EXCLUSION AT WORK


Start of discussions onUN Investment Principles

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THE 5 MOST VALUABLE CORPORATIONS WENT FROM INDUSTRIAL TO INFORMATION AGE IN ONLY 25 YEARS


1991 (25yrs ago)General Motors(Automobiles; oil-driven)Royal Dutch Shell(Oil & Gas)Exxon(Oil & Gas)Ford(Automobiles; oil-driven)Toyota(Automobiles; oil-driven)

Apple(Technology)Alphabet(Internet/Technology)Microsoft(Software)Amazon(Online Retail)Berkshire Hathaway(Investor)

2016 (today)

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THE MOST POWERFUL COMPANIES ARE ON THE WAY TO BECOME THE MOST SUSTAINABLE ONES AS WELL


“Using green power at Google, we are committed to powering 100% of our operations with clean energy…” “…we’re generating enough

renewable energy to cover 93 % of the electricity we use at our facilities worldwide…”

“BHE Renewables encompasses BHE Solar, BHE Wind, BHE Geothermal and BHE Hydro. These companies make us the owner of one of the largest renewable energy portfolios in the U.S….”

from the Environmental Responsibility Report



What's working?


Action!

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THE PLANET/PROFIT MATRIX:CAN PROFIT & PLANET BE COMBINED?


Planet

Profit

OldIndustry

„profit from planet“

NGO„profit for planet“

LocalBusiness

NewIndustry

„profit & planet“

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YES - SUSTAINABLE STRATEGIES INCORPORATE PROFIT AND PLANET


Planet

Profit


Planet

Profit(out of) business as usual

“profit”from test software

leading to1000x

the“profit”

inmarket

valuation

loss

THE TRADE-OFF PROFIT FROM PLANETIS NOT ATTRACTIVE TO INVESTORS ANYMORE

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NON-SUSTAINABLE FIRMS NEED TO REINVENTTHEMSELVES – OBJECTIVE: PROFIT & PLANET


Planet

Profit


?

CORPORATE SUSTAINABILITY = TRIPLE BOTTOM LINE = PPP = CSR = ESG = SEECOULD IT OFTEN BE GREEN-WASHING ONLY?

ONLY CSR EXECUTIVE’S JOB?

FOCUS ON CORE:SUSTAINABLEBUSINESS SYSTEMS

-> CEO’S JOB!

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“A GOOD DISRUPTION” BOOK BY OUR NEW DGCORMEMBER MARTIN STUCHTEY – AMPLE NEW DIMENSIONS OF SUSTAINABLE BUSINESSES ARE AHEAD


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Example: “NO LIMITS TO GROWTH” IN GLOBAL SOLAR PANEL INSTALLATIONS


Solar Panel Installations 1975-2015

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“NO LIMITS TO GROWTH” IN ALLSUSTAINABILITY MARKETS - DECLINE IN OTHERS


GDP

Time

“Cradle to cradle”- Re-generate/up-cycles- Sharing economy- Solar & wind energy- Electric mobility- Virtual reality- etc.

“Cradle to waste”- Combustion engine- Oil & gas- Off-line- Paper- etc.

World economies remain stagnant

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THE CONSUMER IS ALWAYS OPTIMIZING HIMSELF – CHEAPER IS BETTER


better use of idle capacitySelf-starterconsumer

will choose thebetter world

CheaperProfit andplanet

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NON-STARTER CONSUMER BUYS “CHEAPER” BUT THE TRUE COSTS ARE NOT INCORPORATED

EXTERNAL COST NEED TO BE INTERNALIZED


Sustainableproduct

Cheaper ?? true costs not accounted for

no further natural costs Expensive ?

Non-starterconsumer

will choose the worst world:

based on incomplete

costs -true i.e. natural

costs are not accounted for

Profit fromplanet



What's working?


Action!

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TRUE COST ACCOUNTING


Profit fromplanet

EXAMPLE OF DRAMATICALLY DIFFERING TRUECOST SITUATION TAKING INTO ACCOUNTTRUE COSTSAT UTILITIES


ca. 10c/KWh = 50% cheaper

in total ca. 20c/KWh each = real costs

Solar Fossil Nuclear

5-8c/KWh

2-3c/KWh

pluscosts of20,000 yearsstoragepluscosts ofradioactivecontaminationof mankindand natureetc.

pluscosts tomake pollutionCO2-neutralpluscostsofglobalwarmingetc.

plusnothing!

volu

me

effe

cts

plus

third

-par

ty c

osts

plus

third

-par

ty c

osts“and the winner is...”

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REGULATORY MEASURES FORBUSINESS SYSTEMS TO MAKE COSTS COMPARABLE: APPLES WITH APPLES


Sustainableproduct Cheaper

better use of idle capacity

true costs not accounted for

no further natural costs

Expensive ! true costs accounted for

Cheaper

Profit fromplanet

Profit andplanet

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NATURAL COSTS MUST FINALLY BEACCOUNTED FOR – WITH THE PROCEEDSLET‘S CREATE A WORLD RESCUE FUND…


¾ World RescueFund

¾ Consumer chooses„for planet“

¾ Sources for a World RescueFund

¾Certification of producers

¾Carbon credits¾VAT for each

product untilnatural costscovered

¾Green accounting

¾……………

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…CLUB OF ROME IN 2020: „THE FOUNDERS OF THE WORLD RESCUE FUND“


¾ World RescueFund

Natural costaccounting

Naturalresources fund

Green quant. easing

Otherideas……..

Global solarenergy(DESERTEC)

ExtractingCO2 from air(Plant f.t. Planet)

Extractingplastics fromoceans, etc.

Sustainabilityeducation(CoR Schools)

THE BEST WAY TOPREDICT THE FUTURE IS…

TO CREATE IT* OUR CLUB OF ROME

THE CREATIVE CATALYST


* Abraham Lincoln

APPENDIX


THE WORLD IS HUNGRYFOR (OUR) ANSWERSWE DO AND CAN MAKE ADIFFERENCE


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CLUB OF ROME: SUCH A POWERFUL BRANDAMAZING POTENTIAL, INTERNATIONAL SYNERGIES“WORLD PROBLEMATIQUE” VS ACTING TOGETHER


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DID THE STONE AGE END BECAUSE WE RAN OUT OF STONES?


1,000,000 USD?

0.01 USD?

Price of the

last barrelof oil

Source: Alexander Magnint 37

CORPORATE SUSTAINABILTY: WE HAVE NOTHING TO LOSE


Source: Joel Pett 38

A HOAX? IF YES: THE WORLD WOULD BE A BETTER PLACE ANYWAY – IF NO: IT SURVIVES


philipp schoeller - deutsche gesellschaft club of rome

Government & Nonprofit