Finance and sustainability crash course - session 4
Wednesday, April 15, 2015
1 Financial innovations for sustainability
Speakers: Per Olsson, Mauricio Portillo Relevant background reading on A Theory of Transformative Agency in Linked Social-Ecological Systems
1.1 Innovations in the global financial system - transformation, scaling, agency
The global financial system - e-journal USA, issue of e-journal USA
- Institutional investors
- Private investors
- Banking
- Financial accounts
Bond market
Do social innovations relating to financial sustainability initiatives contribute to large-scale transformations or do they reinforce the existing (flawed) paradigm?
1.2 Scaling processes in finance for sustainability
- Conservation Finance - Moving beyond donor funding toward an investor-driven approach - report by WWF, Credit Suisse, McKinsey & Company.
Investors/funds -> (financial investments) -> Investment structures -> (Conservation investment) -> Activation of cash flow -> (Conservation impact) -> Ecosystem with conservation needs -> (Impact reporting to investors)
Build a beter understanding o flarge-scale systemic changes and fundamental redirections in people-planet elationships that can hae an impact at the scales that match the Anthropocene?
Transformative trends in business and the economy
1.3 Types of impact investors - by Mauricio
Types of investments: Cash, Senior debt, Mezzanine/Quasi equity, Public equity, Alternative instruments: Venture capital, Private/Growth equity, Real estate, Other real assets, absolute return (hedge funds).
Types of investors:
Finance First investors
Impact First investors
Types of impact of investments
Interesting figure from Open Capital
1.3.1 Case study 1 - Acumen fund investment in Indian power plants
1.3.2 Case study 2 - Aqua Spark investment in Aquaculture
1.3.3 Case study 3 - Fish 2.0
2 REFERENCES
The following literature was cited
1.4 Social inclusive businesses
Social benefits vs. economic benefits
1.4.1 J.P morgan impact investment report
Resources relating to the report
“Impact Investingâ€: Theory, Meet Practice
JP Morgan’s - Spotlight on the Market - The Impact Investor Survey
1.4.2 Note for real-world-ecnomics piece
Impact investments and the sustainability transitions What is the potential role of impact investors and other types of sustainability oriented investments in driving social transformations?