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.

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.

Have you noticed how many investment funds have been created in last 5-10 years all claiming to have Impact Investing focus. It is overwhelming to see so many investment professionals raise money, govt. institutions allocate money , or asset owners invest their own to fix or improve society. Admirable and noble. Billions have been raised to help fix societal and environmental challenges. This is inspiring at first glance, until you actually look under the hood.

Take a look at the mission statements or ambitions of several of the funds created recently.

• “investment platform focused on generating superior returns aligned with sustainable principles”
• “Assist great entrepreneurs developing products and services for the three billion people in the bottom half of the world’s economic pyramid.”
• “We invest to build more inclusive and equitable societies.”
• “We back founders on a mission to build a better world”
• “dedicated to startups leveraging exponentially accelerating technologies to address humanity’s grand challenges.”
• “investing into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return.”
• “seeking deeper positive net impact across the spectrum of capital”
• “We believe that investment capital can help meet large-scale global challenges”
• “enables private sector investment in projects aimed at climate adaptation and mitigation in developing countries.”
• “We back entrepreneurs building climate tech for a regenerative world.”
• “Our ambition is to identify and invest in high-impact solutions for climate mitigation, as well as to catalyse and multiply capital to scale them.”
• “family office investing in regenerative food systems”
• “vision to invest in entrepreneurs building sustainable enterprises that can catalyze development impact for excluded communities and remote geographies across the globe.”
• “support promising entrepreneurs, with growth capital and proven business tools to reach their full potential and enable them to achieve systemic change.”
• “backs technology businesses committed to having a positive impact that answers the most pressing social and ecological challenges of our time, in a way that is both scalable and sustainable.”
• “invests in companies driving measurable social impact alongside business performance and strong returns.”
• “we believe that we can address and alleviate some of the world’s challenges by investing with purpose. “

These are all fine and important aspirations but are these investment funds or investors really purpose driven or do they revert to traditional investment mind set of “hunting unicorns”. Those companies that will have a 1 billion dollar valuation. Isn’t that the purpose of investments to maximise returns for the investor. I don’t have a problem with that. I have a problem with the false packaging. If you are just hunting unicorns, just say so, so the entrepreneur won’t lose any time who’s mission is not to be a unicorn, but a zebra (focussed on improving society and environment, not exponential growth) . Most investments will never be unicorns.

It is hard to start and run a company and do the continuous capital raise. They should not be wasting their time with investors that want to be entertained, informed or are pretending to be interested when they are just researching competitive investments. Perhaps the most important question to ask an investor “are you a unicorn hunter?”. If they are and your ambition is to drawdown carbon by improving the soil and livelihoods of small holder farmers, without any apps, then the fit is wrong. If you want to create meaningful jobs for unemployed youth by doing vocational hospitality training then unicorn hunters are not going to help or invest. If you are a long term developer to de-commoditise the food system then don’t bother with unicorn hunters. If the mission or purpose is your raison d’être, then you are not helped and won’t get money from unicorn hunters. They are looking for an app, few employees, super fast scaling, warp speed growth and monopoly. It is a win-lose approach mindset.

Many investors and most vc’s are fund managers driven by achieving the carry, asap. Few ever ran a company. Growth, Market share, IPO’s are the mantra. They are looking for that big payoff asap. Zebras won’t do that, unicorns will. Maybe they will. At least in the eyes of unicorn hunters they will.

If you are looking to fundamentally restore the social and environmental balance first and foremost, as well as make a profit to fund all your activities and growth, avoid unicorn hunters; especially those pretending to be impact Investors. Those are the worst. They wrap themselves in something that is important to you, but has no value at all to them. Be discerning. Ask them are you a UH (unicorn hunter) or II (Impact Investor) .

The secret of life is honesty and fair dealing. If you can fake that, you’ve got it made.

Groucho Marx

We all need to use this time to heal, regenerate and plan for rebuilding and retooling our society. One can already see the benefits of moving slower, less haste, less co2, less air and water pollution and less crime. Sure, we are locked up our home, but we finally have time to actually connect and communicate with our family. People avoiding each other to maintain social distancing is a new experience. That is true. Just smile, instead of shaking hands or hugging or give the Wai (Thai Greeting). If possible, go for long walk and enjoy quiet.

There is a fundamental shift in how the financial system should be structured and who should benefit. To quote a HNW Sikh friend of mine. “Unsustainable paths are no longer feasible whether for the billionaires, Wall Street or Main Street. Our collective destructive behaviours need to stop and Covid-19 has shown us how damaging we are to ourselves and the planet.” Here we see a billionaire shouting loudly that the billionaires should not be bailed out. “Billionaires deserve to get wiped out”. This would have been unheard of a short while ago.

TBLI is expanding its 25 year mission of creating a financial system that works for all. Ultimately, all investments should have multiple returns for the investor, the environment and society (Triple Bottom Line-Social, Environmental and Financial).

If you want to learn more about TBLI and how this strategy will help deal with a Covid-19 World, listen to our weekly webinar Shareholders for A Better World. Every week we will have discussions and interviews with thought leaders who are truly working to create an inclusive financial system.

Next week April 22-14:00 CET- Impact Investing and Climate Change in the world of a Global Pandemic with Stephen Brenninkmeijer, Private Investor and Chair, Supervisory Board of European Climate Foundation Register here

For several decades, ESG and Impact Investing has been heralded as the way to address societal and environmental challenges. Present state of affairs must bring into question the efficacy of this strategy. The following challenges seem insurmountable.

• Climate Change Destruction
• Biodiversity loss
• Water Shortage
• Food shortage
• Health Crisis (Diabetes)
• Income Inequality
• Pollution
• Threat of War
• List goes on.

One can only conclude that ESG and Impact are either too weak and not effective, or they are not large enough, or the entire methodology of environmental, social, governance, and financial risk and reward need to be redesigned.

TBLI will be focussing on this debate. Come join us and Frame the Future Design.

“Going slower in the wrong direction is not progress”

Rober Rubinstein

 I recently went with my better half, Rieki, to India for the first time.

Rieki had been there many times, having taken groups who wanted to experience the culture. She planned a fantastic trip to allow me to experience the magic of India and not lose my cool with, the intensity that is particular to India. Choosing Rajasthan and planning the route through Udaipur, Dungarpur, Ranakpur, Jodhpur and Jaipur was a stroke of genius.

What was the most surprising of the Continent India, is that it is a beautiful, inspiring, crazy, funny, ballet of total chaos. However, it all works. In spite of all the cars, tuk tuks, trucks, cows, monkeys, and people constantly intersecting each other and us, I never experienced any accidents. Quite amazing. 

India’s remarkable ability to hold in a deep embrace, its cultural heritage and fully accept modern high tech life , and be the world’s largest democracy, is beyond astounding.

The trip was was not a chill beach holiday,  but it was definitely refreshing for the soul. I experience an ancient civilisation that built the most awe inspiring structures that leave you breathless. People who are exceptionally engaging, with a wonderful sense of humour.

My only comment is if you need something created that needs a true artists soul to inspire generations, call an Indian. If you need a plumber, don’t call an Indian artist.

Thank you Rieki for a great holiday.

“India is the One land that all men desire to see, and having seen once, by even a glimpse, would not give that glimpse for all the shows of all the rest of the globe combined.” – Mark Twain

That is a fact, although in a time of fake facts it doesn’t matter.

Why is there not a single bank, wealth manager, or major financial institution the leader in the “race for values investors”. We keep hearing how ESG and Impact is booming and trillions are pouring into the space. If that was true, then why is it that not a single bank is perceived as the leader, the champion, THE IMPACT BANK for UHNW(Ultra High Net Worth) or HNW (High Net Worth) Investors.

One only needs to engage with the Private Banks, Wealth Managers, or Mega Banks to understand the issue here. These institutions are spending nothing on ESG and Impact Investing capacity building. Spending is going to the following:

• ICT
• Cybersecurity
• Compliance
• Capital Buffers
• Traditional marketing
• Bonuses

With this lack of commitment financially, psychologically and emotionally, ESG and Impact are just new products to add to the list of offerings to clients. It is not an important strategy!

It seems that the financial institutions are schizophrenic. All of them don’t want to be seen as a Sustainable, Impact or Values Bank, because they are afraid that clients or staff might leave . However, they also don’t want to be seen as a Bank not embracing ESG, Impact and Values Investing. Make up your mind. You can’t be partially pregnant. To paraphrase Danny Ocean asking Linus Caldwell in Ocean’s 11. “Your either in our out.”

I have met with many Private Banks and Wealth Managers. Nearly all seem to be really out of touch with clients wishes, particularly nextgen clients. The lack of commitment to see the opportunity for clients and the bank is beyond belief. Most of the time it is lip service and most of the time the banks just want to learn some tricks to convince their clients that they understand enough. However, when we (TBLI Group) speak to clients, they are keen, looking and open to a Values Investing strategy. When we ask “do you want a financial return with a social and environmental added values”, they all say, “absolutely. Can you do that?” If you want to you can. No one ever said to me “No I want all my money to make life miserable for everyone and I am working at that 24 hours a day.”

I have heard for years that the problem is the client. They are not interested. I don’t believe that anymore. Sure there are some clients that don’t believe or are not convinced. That is an educational exercise. Do the work to convince. When TBLI started, nearly 25 years ago, educating asset owners and managers, there was no PRI, CDP, EVPA, AVPN, Eurosif. No infrastructure at all. However, TBLI was still able to make inroads, and help build that infrastructure, because we were committed.

Recently, I was at FT seminar on ESG and Japan. The entire day was taken up with complaints by asset managers complaining that ESG date is not good enough. Over and over and over. They kept repeating “ESG is not Good Enough”. I have heard this for 25 years. The moderator asked are there any questions from the audience. I raised my hand and said that “I have heard for 25 years this complaint that ESG Data is not good enough. Why don’t you ever say that the financial data is not good enough? We have gone through a financial meltdown, Maddoff, Worldcom, Parmelat, Enron, etc. The financial sector has lost trillions of dollars and there has never been a single company that went bankrupt on questionable esg data.” I was told that my comment was not a question and we moved on.

Perhaps no one will take a leadership role to own the Values Investing space. That’s fine, but the market or clients are there. Particularly when we dispel the myth that there are no deals. There is no shortage of deals. There is a lack of infrastructure to find illiquid opportunities, at scale. They exist but they are not to be found in traditional places. Different neighbourhood. Doesn’t mean they don’t exists.

TBLI has spent 25 years educating asset owners and managers about ESG and Impact Investing. Convincing has never been a challenge, particularly when you speak to wealth holders. Banks need to allocate the resources needed to dominate the space and grow the industry. They need to approach this as they would if it was an M&A. Until that time, the only big story will be the press releases coming out about how such and such a bank is committed to Values Investing .

To paraphrase Yoda “Do or do not, there is no try”.

A pig and a chicken were walking down the road. As they passed a church, they notice that a potluck charity breakfast was under way. Caught up in the spirit, the pig suggested to the chicken that they each make a contribution.

“Great Idea!” the chicken cried. “Let’s offer them ham and eggs!”

“Not so fast.” said the pig. “For you, that’s just a contribution, but for me, it’s a total commitment.”

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.  

This year flew by so quickly that I don’t even remember it starting. It was a a great year for TBLI and the Values Investing Community. It seems that the focus has shifted from the why to the how. More and more investors, wealth holders, pension funds, family offices, Next Gen, are discovering that they can use their investments to address social and environmental challenges and achieve a financial return.

We were extremely busy traveling in Europe and Asia, to help expand the values investing community. As a result of all these efforts, we now have two dates for TBLI CONFERENCE. The European Event will be held in Zurich at Volkshaus, June 12-13 and the Asian Event will be held in Singapore at SMU, Nov. 7-8. Save the dates.

Here is a small overview of our travels:

• Keynote address in Hong Kong at the Asian Family Office Association
• Extensive presentations in Hong Kong
• Lectures in Beijing and Shanghai
• Keynote at Social Investment Forum in Beijing
• Bangkok presentations on SDG Investing
• Family Office Event in Dubai
• World Business Angels Forum Istanbul
• Dutch Business School Lecture
• Roadshows in London
• Roadshows in Stockholm
• Co-authored Book on ESG Investing published
• Impact Park Milan Keynote address and Chairing panel
• Family Office Wiesbaden
• Keynote Shanghai Asset Allocation
• Wedding Beirut
• Chairing session London African SME Conference
• Chairing Impact Investing Lunch London
• Keynote Zug Impact Summit
• Roadshows in Zurich arranging TBLI EUROPE 2019, ZURICH, June 12-13
• TBLI Inspiration Weekend Scotland
• TBLI Dinner Paris
• TBLI Nordic 2019 Stockholm
• Keynote in Milan for Global Thinking Foundation
• Chairing PE Afternoon Lunch Zurich
• Keynote Chantilly Global Youth Forum
• 3 day road show Singapore arranging partners and date for TBLI ASIA 2019, Nov. 7-8

I need a long sleep. What was inspiring of all these meetings, talks and road shows was the passion, support and enthusiasm that greeted me everywhere. People knew TBLI and responded extremely well to the story and were all very complimentary of our work for the past 25 years. I always say we are an overnight success after a quarter century.

I want to thank Greta Thunberg for saying the Radical Truth at the COP 24 in Katowice, and reminding us that we won’t wait for the policy makers. If you haven’t seen the speech, watch it now. Go Greta!

Great Read for the holidays

The Gift that keeps Giving – TBLI Foundation

A very dear friend of mine passed away this past weekend. Tessa Tennant has often been called the godmother of Sustainable Investing. She created so many organisations that helped build the infrastructure that we have now. Carbon Disclosure Project, UKSIF, Asian Social Responsible Investing, ICE (not Trump’s storm troopers) and countless others. She co-founded the UK’s first green investment fund in 1988, called the Merlin Ecology Fund. What were you doing in 1988?  Now everything seems so much easier with respect to Values Based Investing.

Most of us stood on her shoulders, at one time, to get to where we are now. People forget that. It is easy to ride the wave of money flows going into ESG and Impact Investing, occurring now. That was not the case in the 1980’s. We should never forget that. Tessa was the polite, civilised, passionate, determined, terrier that just would not let go once she got her teeth into something. I admired her immensely for that, because it was easy to give up as the forces against ESG and Impact were monumental.

My wife used to call Tessa an eco-warrior, but the way she pronounced it, it sounded like “eco-worrier”.  My family has known Tessa for a very long time, close to a quarter century. What I loved about Tessa is she knew how to laugh and have fun. She invited my son (Sam) and myself to her home (Glen House) near Edinburgh. It snowed the night, we arrived and the next day, she organized some make shift sleds (boxes, and garbage lids to slide down the hill. Sam and I loved it. Tessa loved to play games. She was great at scrabble, we never had a chance.

When she decided to quit her job and go to Asia to start the Asian Social Responsible Investing Association, I was happy that she had an important project. What most don’t know about Tessa, is that she is frugal (understatement). Lives simply and travels so light that she could fit her carry one in the back of the seat in front of her, where you normally can put your phone or papers. Never understood how she did that.  I visited her in Hong Kong at her “home” which was a shack on the rooftop of apartment. Few realise how simply she lived and how little she took for herself to achieve her goal of changing the mindset of the financial sector in Asia. Totally self-sacrificing.

In November of last year, she invited Rieki (my wife) and I, along with a few other friends to Glen House to be together. No agenda, just taking the time to be together and take the time for reflection. In contrast to most who respond when you say I am in town, “ok lets grab a quick coffee at Starbucks and walk for 5 minutes to catch up,” Tessa and Bill (her husband) created a welcoming environment for us to reflect, enjoy, chat, walk, eat, drink and just live in that moment together and be there for each other. From that weekend, the seeds were sown for TBLI Impact Retreat which we will hold at Glen House in Sept, this year. The response was so overwhelming, that we are sold out and plan to hold it regularly at Glen. At least, until Bill gets tired of my jokes.

Tessa was always a great guest, as she blended in, and participated fully. The laugh was infectious and she thoroughly enjoyed my Curb Your Enthusiasm, George Carlin humour. She kept prodding me to finish my book using all the funny stories and quotes, and I will. Most important. She made a lasting impression on me and everyone who took the time to know her. She was the ultimate mensch. A person of great honour and value, that left the world in a far better place than how she found it.

Tessa, I am sending you one of my best and warmest hugs. I will miss our chats and walks. I can promise you that the Retreats will continue and we are all in your debt. Many are cutting the ribbons for the photo ops, but it was you that dug the holes.

Your physical being is gone but your spirit will always be there and it will manifest itself often, when we least expect it. Keep laughing. Big hug.