ESG Celebration-The Most Successful Failure in History!

According to the UN Principles for Responsible Investing, there are over 5000 signatories, who signed the PRI (Principles for Responsible Investing) with an estimated AUM of US$130 trillion committing to ESG principles. Started in 2005, at the invitation of United Nations Secretary-General Kofi Annan, who invited a group of the world’s largest institutional investors to join a process to develop the Principles for Responsible Investment. This led to Principles for Responsible Investing. These are the principles:

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.

Principle 5: We will work together to enhance our effectiveness in implementing the Principles.

Principle 6: We will each report on our activities and progress towards implementing the Principles.

On any scale, one would consider this a massive achievement in realigning investment to restore the social and environmental balance, as well as achieve a financial return, with good governance. However, if we look at the outcome, not the money flows based upon a vague definition of ESG, one can only conclude that this has been a monumental failure. Few, if any of the environmental or social challenges facing the world, which the PRI was intended to address have been met. We have seen lots of fees for service providers and asset managers, but society and the earth has suffered deeply.

Responsible Investment is not working!

Social and Environmental Challenges not addressed.

Climate Change Destruction

Biodiversity loss

Water Shortage

Food shortage

Health Crisis (Diabetes)

Income Inequality (Living Wage)

Pollution

Threat of War

Many have benefited financially and all seem happy to enjoy the party on the sinking titanic, earning their fees, and accolades, toasting to selfies, press releases, and other photo ops. There are few serious conversations or questioning of present ESG 1.0 have been held. In the eyes of many, ESG, as it is done now, has become a “death march in the wrong direction but slower“. That is the progress part.

Next week. PRI will be hosting the PRI in Person Summit, in Barcelona on Nov. 30th, with over 2000 attending, including asset owners, asset managers, and service providers. If we look at the program, there is little serious open discussion questioning the status quo. Nearly no serious independent thinker who is questioning ESG methodology has been invited to speak. It has become a love-in for all those eating from the pig trough of fees, and benefiting financially from the present status quo.

Where are the true critical independent thinkers like Mark Campanale, Prof. Paul Watchman, Desire Fixler, Glenn Frommer, Bonnie Lorraine Smith, Angelica Lips da Cruz, Mats Andersson, Geoff Kendall, Leesa Soulodre, Paul Clements-Hunt Dr Raj Thamotheram, Wouter van Dieren, Kate Raworth, Alexandra Mihailescu Cichon, Alexandra Pittman, Alexandra Smith, Andrew Behar, Andrew Gazal, Andrey Bogdanov, Anne-Marie Brook,Antoine Mach, Arthur Wood, Bertrand Gacon, Bob Willard, Brett Wallington, Daniel Klier, Gabe Rissman, Gabriel Thoumi, Gabriela Gaby Herculano, Jennifer Rae Pierce, Kai Chen, Kevin Franklin, Linda Nemec, Luke Wilcox, Mark Tulay, Martin G. Viehoever, Matt Moscardi, Meeta Misra, Michael Bogosyan, Ned Harvey, Paul Allard, Paul Herman, Pavan Sukhdev, Peppi-Emilia Airike, Philip Sugai, Ralph Thurm, Reid Thomas, Richard Rothenberg, Sonia Zugel,Stefania Di Bartolomeo, Tee Ganbold, Tim Nicolle

How can you ever fix a totally bankrupt and broken system with only those that are supporting, financing and benefiting from this environmental and social destruction on stage. We need critical dialogue, not a cheerleading section saying who great we are when we aren’t

As I said, financially ESG with the PRI at the forefront has been successful beyond our wildest dreams, but some of us actually want the earth and society to improve and the balance restored so we can thrive. We need a financial system that works for all stake holders and not just investors.

“I’m worried about greenwashing. I think we should come down on it very, very hard, whether it’s with criminal intent or actively deceptive.” John Elkington

If you feel that ESG needs significant fixing, and want to hear many of the independent critical thinkers mentioned above, help us stop the greenwashing and vote during the Better World Prize on Dec. 1.

November 27, 2022 2019, 2022, ESG Investing, Impact Investing, Investment, Sustainability, TBLI Conference No Comments on ESG Celebration-The Most Successful Failure in History!

Overnight Success after 25 years!

In March, I did an extensive road show in Asia, visiting Singapore, Hong Kong and Bangkok. It was quite intense. Some days I had nearly 8 meetings, but definitely worth it.

What struck me the most is that Asia has gotten the Values Investing bug, big time. Nearly all the presentations that I gave, and the people I met, and executive briefings I had, were not about why, but all about how. It seems a tipping point had been reached, at least by the people I was meeting. They all were curious as to why there was so much interest and what had happened to spark this interest. What were the drivers?

The presentations I made were about how Values (ESG and Impact) Investing had become mainstream and what has happened in the last 25 years to change the mindset of investors. The list below were very influential , as well as the efforts of many building the ecosystem of ESG and Impact, including TBLi.

25 year Milestones

  • Carbon Tracker
  • Freshfields I & II
  • UNPRI
  • Equator Principles-50m – 10m
  • Carbon Disclosure Project
  • Montreal Pledge

The Asians all felt that the Europeans were way ahead of the curve and very keen on Values Investing, from the beginning. I had to correct that perception. When TBLI started, there was little to no infrastructure to lay the ground work for ESG and Impact. The notion that the entire financial sector jumped up and gave TBLI a big hug, and embraced us, is a myth. It was a long hard slog.

I remember this experience vividly.

When I started (late 1990’s), I was invited to speak to the Dutch Insurance Association about Climate Risk and Sustainability. I started my talk explaining that a country below sea level should start to be concerned about the risks that rising sea levels would cause. The response from the large insurance Companies present was, “It’s not a problem for us if sea level rises, we don’t cover salt water damage.”. One could be come angry at the low level of understanding of that response, or translate in their language. I chose the later, by saying, “That is true, but you sell mortgages, and if 200.000 homes are submerged in water due to seal level rise, which become worthless, you have a big problem.”

Speaking in the language of the person who you are trying to convince has always been key to TBLI’s approach. The moral imperative doesn’t work unless you show the financial risk and opportunity. Don’t shout loudly in German to someone who speaks Chinese.

“Never underestimate the power of stupid people in large groups.”

George Carlin

We are all an overnight success after 25 years

TBLI CONFERENCES 2019

Meet the thought leaders and Investors in Values Investing. Join us for one of our TBLI Conference. All Asian Events are free for Investment Decision Makers.  

April 30, 2019 2019, ESG Investing, Impact Investing, Investment, Sustainability, TBLI Conference No Comments on Overnight Success after 25 years!

Where have you been?

My apologies for such a long radio silence., TBLI has been on the road extensively this year, helping to build the infrastructure for TBLI (Triple Bottom Line Investing) in Asia. In addition, we have been expanding our outreach to Private Asset Owners (Single Family Offices, Multi Family Offices, and HNW). It has been quite a journey.

From January to May, I visited Hong Kong, Beijing, Shanghai, Bangkok, Dubai, Istanbul, Stockholm, Milan, Wiesbaden and then back to Shanghai. What was surprising was the hunger for information about ESG and Impact Investing. It was as if a paradigm shift had occurred among asset owners. They wanted to believe that Values Investing could work, but needed more convincing.  Most of the talk was dispelling the Myths that Impact was charity, money losing, philanthropy, no good management, etc. Those myths were easy to dispel. Almost as easy as dispelling the myths that all PE Funds and Hedge Funds achieve 30%+ year in year out. Or all fund managers always beat their benchmark.

Nearly all were keen to better understand what is Impact and how can they move large sums into investments that look at all risks and opportunities.

I always said TBLI was an overnight success after 20 years.

With that in mind, TBLI will be doing many more road shows, particularly in Asia to further help build the ESG and Impact eco system. If you would like to host a meeting with clients and staff, let us know and we will be happy to speak at your event.  Contact us 

Forbes Interview

Devin Thorpe of Forbes recently did an interview with me. Here it is. I hope you enjoy it.

TBLI CONFERENCE NORDIC 2018, Nasdaq, Stockholm Sweden Nov. 8-9

TBLI Conference Program is nearly finished. Hope you can join us. We anticipate a significantly larger turnout this year, from last year. The number of Early Bird Registrations is much higher. If you are planning on coming, the Early Bird Discount of SEK 2000, — ends May 31. So register soon. 

GDPR Private Policy

You’ve probably already seen quite a few emails about the GDPR. Europe’s landmark legislation on data protection.   We have updated our Privacy Policy  to comply with the new GDPR requirements. We kindly ask you to read them and get familiar with the updates.

TBLI Special Events

As part of our capacity building outreach on ESG and Impact Investing, TBLI will also be hosting small, intimate events as well as collaborating on larger events for Asset Owners. Asset Owners may attend all Conferences free of charge. Service providers may register to attend for a fee. Dinners and Retreats have a registration fee involved. If you would like to join one of these events, contact us.

Save the Dates:
• TBLI Inspiration Weekend Glen House Castle, near Edinburgh Sept. 21-24
• IMPACT INVESTING: EXPLORING THE PERSONAL JOURNEY  London, 18/9/2018, St. James Hotel Invitation only.
• TBLI Dinners Paris October 30.
• Family Office Event- San Francisco, 12-13th September 2018, The Cabernet Sauvignon Yacht, where 100+ N American Family Offices meet Invitation only.
• Family Office Event-London 9-10th October 2018, The Dorchester, where 140+ London based Family Offices gather Invitation only.
• Family Office Event-Zurich 13-14 November, 2018,  Dolder Grand Hotel, The meeting place for 100+ genuine* Family Offices from all over the world  Invitation only.
• Family Office Event-Dubai, 5-6 February, 2019, Palace Downtown Dubai Invitation only.
• Family Office Event-Singapore 5 – 6 March 2019 The Fullerton: The Asian Forum for 100+ genuine* Family Offices and UHNWI  Invitation only.
May 25, 2018 2018, Climate Change, Emerging Markets, ESG Investing, Impact Investing, Investment, Sustainability, TBLI Conference No Comments on Where have you been?

Convincing Trump about Impact Investing

I love irresponsible investors and criminals. Not real irresponsible investors and criminals, I mean those that are totally against ESG and Impact Investing. Those that have a clear idea why ESG is a terrible idea and it is a complete waste of time and will always fail. Why do I like this group, because they are the easiest to convince about Sustainable Investing and achieve behavioural change. Remember the financial sector is the most predictable group you will eve encounter.

Recently I was at a conference on ESG investing with mostly mainstream financial alpha males, all totally convinced that they had all the answers. A significant part of the Conference was dedicated to ESG and ESG analysis. At the end of the first day, there was a very nice dinner. Everybody rushed to sit themselves next to the best potential client. I walked slowly and ended up at a big empty table with two men and many empty seats. Next to me was a German, hard core, anti climate change, and sustainable investment. He was very aggressive and didn’t want to be confused with facts or fake news. I thought I was sitting next to Donald Trump, but I wasn’t. My neighbour was actually more educated.  The other dinner guest was an ESG fund manager and a big fan of ESG integration and investment.

Did you ever talk to someone who contradicted and denied whatever you said. If I said, it was raining, he said no it isn’t. It’s cold. No its not. Renewable Energy is terrible. Money wasted. Extra financial investing is stupid. Etc. My German challenge had a family office and managed his own money, and according to him, he didn’t do so well, as he often missed his bench mark. After 1.5 hours of listening to his tirades, fake news, silly remarks and unwillingness to keep an open mind, I used the fool proof convincing method.

I said “Remember this day. March 16th. It might take one hour, one day, one week, one month, 1 year or 2 years or 3 years, but you will ultimately adopt ESG and Impact as a way of managing your money, and you will remember this day and me.” Then I turned to my ESG fund mangers and said to my Trump Surrogate that his firm manages Euros 200 billion, and he has beat his bench mark, regularly,  for his clients using an integrated ESG methodology”. My ESG skeptic looked shocked and his facial colours changed, a small smile forced its way out of his vault like face and asked “could I have your card so we might speak about your ESG services”.

Don’t you love financial alpha males who hate ESG and Impact. I do.

Impact Investing Myanmar

My wife, Dr. Rieki Crins started The Learning Exchange Foundation (LEF). After successfully creating a vocational hotel school in Bhutan, she has been asked, by the Governor, to set up a hotel school for Karen refugee youth in Myawaddy, Karen State, Myanmar.

As you all know, until 2012, there was a bloody civil war in Burma and the ethnic minorities where became victims of this war. For example, the Karen people had to flee to refugee camps. Now there are several of these camps along the Thai border. These camps have been here for 60 years  and  there are more than 100.000 people living in these camp, with  50% under the age of 25. These young people receive education from various NGO’s but the education, and thus diploma, are not recognized by Myanmar and Thailand. These kids are stuck!

Tourism is booming in Myanmar and there is a huge demand for skilled hotel people. Her hybrid hotelschool ( hotel and school) is ideally placed to address the challenges and needs of the Karen people living in these refugee camps.

Please support this important initiative that is working to create a livelihood for 100.000 refugees stuck in these camps .

Karen Hotel Project needs to raise US $ 100.000. 

If you would like to have more information, please contact rieki

Thank you.

"Donate

April 18, 2017 2017, ESG Investing, Impact Investing, TBLI Conference No Comments on Convincing Trump about Impact Investing