united sustainability - bee-ev.de¤sentationen... · source: j. daniel dahm, 2014" april 11,...

April 11, 2014 1

UNITED SUSTAINABILITY – exclusive & confidential

UNITED SUSTAINABILITY

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INVESTMENTS FOR LIFE

UNITED SUSTAINABILITY

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Institutional investors face major challenges

§  Feelings of insecurity abound amidst extreme investment scenarios.

§  Traditional asset classes currently bear high risks:

§  Bonds do not hedge against inflation at historically low interest rates,

§  stock volatility hard to bear given strained risk budgets.

§  Investors increasingly consider absolute return approaches and alternative asset classes.

§  Sustainability is a global mega trend and chance of problem solving.

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Current situation regarding liquid asset classes

Stocks

High volatility makes risk and return forecasts more difficult.

Globalisation leads to increasing correlation within the asset class.

Crises increase correlation of stock and bond markets.

Bonds

Low returns reduce attractiveness of asset class.

Increasing risk of inflation devalues nominal claims.

Growing default risks even of government bonds aggravate asset liability management.

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Can alternative asset classes "solve the problem?

Example: Precious Metals

•  Already high price level •  Insecure long-term price trends •  High volatility •  No current pay-outs

Example: Hedge Funds

•  Lack of transparancy •  Image problems •  Regulatory interventions imminent •  Disappointing performance within crisis

Example: Private Equity

•  High risks •  Bidding competitions •  Unreasonably high price level

•  Stable and predictable demand •  Barriers to entry for competitors •  High price inelasticity

•  Growing demand for organic agricultural products

•  Growing demand for sustainable timber products

•  CO2-compensation as add-on

Example: Infrastructure

Example: Timber &

Agriculture

Example: Real Estate

•  Eco-trend offers competitive advantage for green buildings

•  Predictable long-term cash-flows

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United Sustainability Exclusive and Confidential

uniteuniting human needs, local and regional potentials, scientific and technological know-how.sustainsustaining our common goods, the treasures of the evolution of life and economic values.enableenabling ecological and economic performance, civil society empowerment and sustainable development.

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What is needed: investing in real values

•  SUSTAINABLE INVESTMENTS are build to last. Its projects and investments are long-term. Its business is sustainability.

•  SUSTAINABLE INVESTMENTS are targeting sustainable infrastructures: solar/wind/water power, sustainable timber production and reforestation, biodiversity and renaturation, water desalination and purification, social ventures and education, clean tech and intellectual property, etc., thereby creating values and assets in the real economy.

•  SUSTAINABLE INVESTMENTS are offering stable and risk reduced returns. No leveraging, minimum of financial market correlations.

•  SUSTAINABLE INVESTMENTS are harnessing the potential of local communities, civil society and combine them by sustainable intelligence.

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SHOW-STOPPERS We neither invest in companies nor in technologigal ventures nor do we leverage investments with credits or other instruments. We don‘t invest in anything with arms, aircrafts, fossil fuels, nuclear energy, GMO, drugs or unsustainable business or investment practices involved.

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Truly conservative but unconventional

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SERVING INVESTMENT NEEDS Investors need profitable long-term investments, security and protection against currency risks, inflation and market volatility. SUSTAINABLE INVESTMENTS are investments in assets that serve human needs, thus enabling secure investments with stable profits from ever-needed goods and services.

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Real values fulfilling investment needs

ü  Renewable energy power-plants allocated in an optimal geographical diversification;

ü  Purchasing of real asset values;

ü  Real value preservation plus value creation from sustainable business practice;

ü  Maximal independency from currencies and financial market risks.

ü  Integrated solutions and consequent democratic ownership strengthen long-term performance,

ü  Offering ecological, social and economical surpluses, reducing location risks.

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SERVING HUMAN NEEDS We all need to eat and drink, we need to live in a house or apartment and we need water, electricity and sanitation in order to lead a livable life. SUSTAINABLE INVESTMENTS target sustainable infrastructure, thus contributing to the prosperity of people.

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The ��SUSTAINABILITY-ZEROLINE ��– a severe Sustainability Benchmark

J. Daniel Dahm, 2014

SUSTAINABIL ITY ZEROLINE

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Biocapacity Ecological Footprint

Capacity

Demand

Biocapacity versus Ecological Footprint

SUSTAINABILITY ZEROLINE


Source: Global Footprint Network 2010, modified by J. Daniel Dahm, 2014

The Sustainability-Zeroline is a refinement based on the image of the “Overshoot” by the Global Footprint Network 2010. The Sustainability-Zeroline defines the fictive status of a total equilibrium of global biocapacity and global ecological footprint as “zero-line-benchmark” – the minimum requirement for sustainability (that is obviously not fulfilled).

The Sustainability-Zeroline-Benchmark

Abb. 1 !

Abb. 2 !

Source: J. Daniel Dahm, 2014

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-16 -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8

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Biocapacity (Capacity)

Ecological Footprint (Demand)

Capacity minus Demand

Overshoot


Biocapacity (CAPACITY) versus Ecological Footprint (DEMAND)

Development of the Sustainability-Zeroline-Benchmark

The Sustainability-Zeroline provides an easy visible and comprehensible way to understand the relation and the disproportion between supply and demand for the ecosystem of the planet Earth. If the full capacity of the planet is equal to the full demand of mankind we have a kind of conservation of nature and natural resources. An ecological rebuild of our livelihoods is impossible with this, because the build-up potential of nature is completely absorbed. But – at least – we as mankind achieved a state of rest. Compared with today that would be already a great improvement. But if the demand (by economic activities and consumption) exceeds the supply of the ecosystem we experience an overshoot which is potentially deadly for our livelihoods – like “biting the hand that feeds you”. This situation mankind achieves since the early 1990s every year. Still – it is often misunderstood as growth. To overcome this fatal development and cognitive dissonance it is important to make this matter of fact easy to understand, like a profit and loss statement for our plant and our future. The Sustainability-Zeroline allows this.

Abb. 3 !


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The Sustainability-Zeroline-Benchmark��– Geo-Biosphere and Anthroposphere (cumulated)


SUSTAINABIL ITY ZEROLINE

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Build-up (incl. internalisation + compensation)

Externalisation


Sustainability-Zeroline-Benchmark Geo-Biosphere & Anthroposphere

(relative) Abb. 8 !


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Build-up (incl. internalisation + compensation)

Externalisation


Sustainability-Zeroline-Benchmark Geo-Biosphere & Anthroposphere

(total) Abb. 9 !


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Biocapacity & ecological footprint Global creditors and debtors

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Offering stable performance by harnessing sustainability

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Optimal geographical spread

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!Poland

Spain

Germany

France

Italy Turkey Japan

Pakistan

Thailand Dom. Rep.

USA

Photovoltaic Power Plants – Wind Power Plants – Hydro Power Plants in an optimal geographical spread.

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OPTIMAL GEOGRAPHICAL DIVERSIFICATION THROUGH COUNTRY AND TECHNOLOGY SPREAD Photovoltaic Power Plants – Wind Power Plants – Hydro Power Plants in an optimal geographical spread.

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WEALTH PRESERVATION The investment strategy as well as the amortization model and the focus on sustainable assets enable our ultimate commitment: long-term wealth preservation for our investors through reasonable investments in basic human needs for an adequate counter-value.

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Performance advantage: stable cash flows, optimal risk reduction, strong sustainability

§  Demand-oriented, concrete benefits for people, communities and localities, serving energy needs;

§  Non-subsidy-dependent revenue streams through energy providing via Power Purchasing Agreements (PPAs) enables positive correlation along energy price development;

§  Geopolitical diversification of real infrastructure assets along optimal climate-ecological, political and socio-economic criteria leads

to superior risk-revenue ratio; §  Wealth-preservation by back coupling of financial capital into sustainable real capital;

§  Returns from utility generation and consumption;

§  Investment in real instead of nominal capital and high-potential infrastructure minimises risk; §  Integrated Sustainability Approach (ISA) reducing investment risks by empowering civil society, strengthening locational factors and

stabilising local ownership;

§  Creating economic commons with full stakeholder involvement (employees, civil society organisations, communities, local business sectors, educational institutions, policy makers);

§  Distribution of fair stock ownership through multishareholder-strategy.

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CASH FLOW PROJECTION400 MILLION EURO SAMPLE PORTFOLIO

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Investments in Integrated Sustainability Approach

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INTEGRATED SUSTAINABILITY

APPROACH

COMPLIANCE Supervisors from Science, Economy, Finances & Civil Society provide permanent evaluation, consultation, feedback & patronage

FINANCE Optimal use of dedicated financing solutions, Subsidies, Sovereign Wealth Funds, Private Equity Funds

FRESH WATER Desalination, Treatment & Purification;

Irrigation, Piping, Access

CO2 Compensation, Reduction;

Trading of Certificates

EFFICIENCY REVOLUTION & INNOVATIONS Material and Energy Efficient Technologies, Technical Innovations in CleanTech, IP

PARTNERSHIPS & LOBBYING Incorporating Politics, Science, Civil Society/NGOs, Trans-/Multinational Organisations, Media

ECOLOGICAL INTELLIGENCE Ecological embedding, Civil Society Integration, Long-term Optimisation, Risk Mitigation

RENATURATION Build up of Natural Capital & CO2 sinks: Ecosystems, Reforestation, Biodiversity Protection and Utilisation, Soil improvement

RENEWABLE ENERGY TECHNOLOGIES Solar Thermal Energy, Photovoltaic &Thinfilm, Wind, Hydro-/Tidal Power, Biomass, Geothermal Energy

INFRASTRUCTURES HARD: Cables, Pipes, Logistic, Manufacturing SOFT: Smart Grid Systems, Virtual Power Plant solution, Consumer Interfaces, Community Networks,, Education

United Sustainability follows an Integrative Sustainability Approach (ISA)

Sustainable projects require combination of expertise from different fields (skills & tools)

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CURRENT APPROACH INTEGRATED SUSTAINABILITY APPROACH

•  EXAMPLE: Build 20MW photovoltaic power plant

•  Treated as isolated project, planned/managed by specialised contractors without sustainability expertise

•  Electricity is fed into grid at highly subsidised tariffs, irrespective of actual demand

•  Project driven by individual profitability approach

•  EXAMPLE: Develop 20MW integrated solar energy solution

•  Combination of smart-grid enabled central and decentral renewable energy sources for constant power supply and integration of several end-products improves overall quality.

•  Pooling of value-added steps of Integrated Sustainability Approach (incl. CO2 compensation and certification), increases ROI and builds sustainable infrastructures.

•  Requires sustainability trust

INTEGRATED SOLAR ENERGY SOLUTION: •  Solar thermal unit (day & night) with 20MW

capacity ENERGY USED FOR:

•  Saltwater desalination

•  Supply of Freshwater for local population and agricultural use

•  Piping Infrastructure, Irrigation Systems •  Land improvement (Combating

Desertification) by Soil Fertilisation

•  CO2 Compensation and CO2 Certification

•  Electricity infrastructure supply for regional urban areas and Industries

•  Energetic Storage Capacities

Optional Scaling: Combination of decentralised residential and commercial roof-top photovoltaic through software and Smart Grid solutions to form a Virtual Power Plant

CO2

United Sustainability

Integrated Sustainability created by United Sustainability

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Integrated Sustainability by empowering people

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Investment (i.e. energy

infrastructure)

Community & other

stakeholders

Local companies,

service providers, civil society, policy

makers, ...

Power Purchasing Agreements

Education, Employment, Empowermen

t

Exit via democratic ownership

model („privates to „commons“)

Integrated Sustainability Approach (ISA) "by United Sustainability

Multi-stakeholder- +

Multi-shareholder-involvement

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Offering a true sustainable performance

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Cash flow United Sustainability´s exemplary portfolio

Exemplary Portfolio of

running assets under United

Sustainability´s investment case (along

current market conditions)

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Transforming financial capital into real capital

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Contact

UNITED SUSTAINABILITY GMBH Office Berlin! Greifswalder Str. 225 10405 Berlin Germany Dr. J. Daniel Dahm! Cell +49 – 179 – 69 66 989 [email protected]

united sustainability - bee-ev.de¤sentationen... · source: j. daniel dahm, 2014" april 11,...

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