Ethical Markets focuses on transition management’s top priority: ending externalities
St. Augustine, April 22, 2016 – Ethical Markets Media welcomes Earth Day with a stunning new total for its Green Transition Scoreboard® (GTS). As of Q4 2015, the GTS totals $7.13 TRILLION cumulative in non-government investments and commitments tracked since 2007 in the global green transition now underway. The 2016 report, “Ending Externalities: Full-Spectrum Accounting Clarifies Transition Management“, focuses on the top priority: ending “externalities” which the IMF estimates at $5.3 trillion annually worldwide. Companies tracked since 2007 by the GTS are those avoiding negative externalities and focusing on transition management to low-carbon economies agreed by 195 member countries of the United Nations’ Sustainable Development Goals (SDGs) and the COP21 climate agreements in Paris in 2015.
Each GTS sector covers substantial capital investment in areas which Ethical Market’s president and founder Hazel Henderson’s years of research as a science advisor and which the Ethical Markets Advisory Board expertise indicate are strongly contributing to the growing green economy. The GTS tracks Renewable Energy, Energy Efficiency, Life Systems, Green Construction and Corporate Green R&D, representing broad areas of investment in green technologies. Life Systems gained a new category: Fintech for sustainability, including peer-to-peer lending and crowdfunding, in addition to other subsectors tracking the system-wide interconnections among information and digitization, water, food, education and health.
“The upward trend in investments since 2007 aligns with our recommendation to invest at least 10% of institutional portfolios directly in companies driving the global Green Transition,” says Henderson. Updating strategic asset allocation models serves both as opportunities and as risk mitigation. Excluding government investments to the extent possible, the $7.13 trillion in private investments and commitments as of 2015 puts private investors on track to reach $10 trillion in green sector investments by 2020.
Ethical Markets strictly defines ‘green’ by omitting technologies such as nuclear, clean coal and most biofuels while carefully assessing rapidly advancing technologies such as nanotech and IoT (Internet of Things). Sources of financial data are screened by rigorous social, environment and ethical auditing standards.
Renewable Energy – Growing strongly as fossil fuel becomes less appealing in light of cost parity of renewables, limiting carbon emissions and driving evolution to sustainable societies.
Energy Efficiency – Widespread ripple effects positively impact jobs creation, manufacturing and other metrics tracked by traditional GDP and integral to transition management, quality of life metrics reported in Life Systems.
Life Systems – Encompasses broad areas systemically linked, including water, remediation, waste and recycling, green infrastructure and info-structure, education, community investing and the myriad of digitization opportunities and obstacles, investments often overlooked as too small, such as the Fintech 100, 2015.
Green Construction – This sector ranges from “low-tech” passive solar buildings to “high-tech” flow 3D printing. For consistency, we omit labor, thus undercounting a form of capital which intrinsically increases the value of green construction.
Corporate Green R&D – Powered by the automotive industry, this sector is also heavily weighted in favor of energy generation, conservation and distribution with a precipitous decline in fossil fuels P&E.
ABOUT ETHICAL MARKETS MEDIA
Ethical Markets Media (USA and Brazil), Certified B Corporation, is a micro-multinational social enterprise with the mission of reforming markets and metrics while helping accelerate and track the transition to the green economy worldwide with the Green Transition Scoreboard®, Ethical Biomimicry Finance®, Transforming Finance TV Series and research and daily news at www.ethicalmarkets.com.
Rosalinda Sanquiche, Co-Author and Executive Director, Ethical Markets Media
[email protected], 904-826-1381
Timothy Jack Nash, Senior Advisor and Director of Sustainability Research, Ethical Markets Media
[email protected], 416-821-9179
Hazel Henderson, Founder and President, Ethical Markets Media
[email protected], 904-829-3140
ALL ABOUT THE GREEN TRANSITION SCOREBOARD®
* Reports and Press Releases
* EMM Provides Rigorous Foundation for GTS
* Watch the video
* GTS In the Press
* Overview: Inside The Green Transition by Hazel Henderson
Batteries and Storage Charging Green Transition with $17.4 Billion Influx
St. Augustine, FL, September 15, 2015 ~ The Green Transition Scoreboard® Fall Update, Batteries and Storage Charging the Green Transition, focuses on battery and storage investments, reporting a total of $17.4 billion in private investments in R&D for battery and storage technologies. Findings are compiled from 2007 to 2014 and include the top 30 technology producers. The Update focuses on investments in batteries and storage as enhancing and optimizing the use of renewable energy and efficiency. It also highlights best practices and the emerging breakthroughs which are directing batteries and storage to become an important sub-sector of green technologies.
Read full update
Green Transition Scoreboard® Celebrates 2015 Earth Day With $6.22 trillion Blowing Past Mid-Mark to 2020 Goal
Saint Augustine, FL, April 22, 2015 ~ Earth Day 2015 marks $6.22 trillion invested in the global green transition since 2007. This meets our Green Transition Scoreboard® (GTS) goal of $10 trillion privately invested in the green economy by 2020, easily on track to reach the 2020 goal to effectively scale innovations and reduce costs in green technologies as the world transitions to the Solar Age.
Appropriately for Earth Day, the 2015 GTS report, Breakdowns Driving Breakthroughs, focuses on Life Systems, a new category capturing system-wide interconnections among efficiency, information and digitization, energy, water, food, education and health, which equals 14% of the overall total.
The upward trend in investments Ethical Markets Media has reported since 2009 aligns with the strategy to invest at least 10% of institutional portfolios directly in companies driving the global Green Transition, appropriately updating strategic asset allocation models both as opportunity and as risk mitigation.
READ THE FULL REPORT
Green Bonds Add to $5.7 Trillion Privately Invested in the Green Economy
Saint Augustine, FL, September 1, 2014 ~ The first two quarters of 2014 show the Green Transition Scoreboard® (GTS) at $5.7 trillion in private investments and commitments since 2007. This confirms the green economy is on track to reach $10 trillion in investments by 2020 to effectively scale innovations and reduce costs in green technologies as the world transitions to the Solar Age.
The 2014 mid-year update “Green Bonds Growing Green Infrastructure” focuses on the bond markets’ addition of green, impact and ESG (environmental, social, governance) targeted bond issues. These new bonds provide long-term investment opportunities to pension funds and other institutional investors as global policy makers, corporations and asset managers see demand for investments in infrastructure, environmental, social and human capital being integrated into financial markets.
Read the full mid-year update.
March 2014 Green Transition Scoreboard® Tops $5.3 Trillion
Saint Augustine, FL, March 31, 2014 ~ Again for 2014, the Green Transition Scoreboard® (GTS) finds, with $5.3 trillion in private investments and commitments since 2007, the green economy is on track to reach $10 trillion in investments by 2020 to effectively scale innovations and reduce costs in green technologies as the world transitions to the Solar Age.
The 2014 GTS report Plenty of Water! focuses on the many water investment opportunities as global policy makers, businesses and civic society realize water is critical to environmental, social and human capital, and must be integrated into financial markets rather than overlooked as an externality.
GREEN TRANSITION REPORT March 2013
St. Augustine, FL, March 4, 2013 – The year 2013 promises long strides away from the fossil-fueled Industrial Era as illuminated by the Ethical Markets Green Transition Scoreboard® (GTS) which tracks private investments growing the green economy worldwide since 2007, finding $4.1 trillion invested or committed as of Q4 2012.
The year 2012 was an inflection point for the green transition worldwide. Technology and innovation such as in electricity generation and transport began forcing structural changes and rethinking of business models, urban design and development toward integrated systemic approaches.
Read the full report.
WHAT IS THE GREEN TRANSITION SCOREBOARD?
THE GREEN TRANSITION SCOREBOARD® (GTS) is a time-based global tracking of the private financial system for all sectors involved with green markets, producing a transparent line of sight toward the ethical progress of wealth building as defined by the triple bottom line of planet, people and profits.
The GTS logo represents a visual symbol for inevitable human progress whose barometer rises, away from the symbols of the out-dated Fossil Fuel Era, as green investments increase over the next ten years and we enter the next economy – the age of light.
The GTS was created and realized by Hazel Henderson and Ethical Markets Media. It is updated and maintained by Ethical Markets Media, LLC. Financial data and organizations included in the GTS are screened by the strictest of rigorous social, environment, and ethical auditing standards.
Follow #greenscore on Twitter.
The global economy is now at a tipping point – emerging from the 300-year fossil-fueled Industrial Era to the cleaner, greener information-rich renewable energy societies which I predicted in my The Politics of the Solar Age in 1981. Although prominently reviewed in the New York Times and based on six years of service on the Technology Assessment Advisory Council of the US Office of Technology Assessment, the National Science Foundation and the National Academy of Engineering – my book went unheeded until recently. The health and environmental damage of reliance on fossil fuels led me to found Citizens for Clean Air in New York City in 1964 and persuade local media to carry an Air Pollution Index on weather reports. Technology assessment research deepened my understanding of the scientific realities now entering public awareness: our planet Earth is awash in energy – that free daily photon shower from the sun. We now need to accelerate our methods for efficient capture and use of this gift of Nature which green plants innovated in photosynthesis – providing food for humanity.
While waiting for the politics to reflect the coming Solar Age, I became a patient, well-informed, long-term investor, delving deeper into why economics and finance were missing this transition – obscured by fallacies of “efficient markets” and “rational actors.” I avoided this herd behavior by becoming an early investor in Jeffrey Leonard’s Global Environment Fund, whose world view matched mine: find companies in efficient, renewable technologies, minimizing throughput of energy and materials used in producing national output. This confirmed my view that GDP gives a Grossly Distorted Picture of a country’s progress. My understanding expanded after founder Wayne Silby’s invitation in 1982 to join the Advisory Council of the Calvert Group of socially responsible mutual funds. By 2000, I and Calvert launched our Calvert-Henderson Quality of Life Indicators as an unbundled dashboard of 12 systemic trends in national progress (www.calvert-henderson.com).
Changing the scorecards of success both at the company and national accounts levels became my passion. Calvert deepened my understanding of the role of finance in technological innovation. Both public and private finance can play leadership roles: public investments created satellite communications, the internet, the inter-state highway system and many civilian spinoffs of military budgets, while the private sector innovated in chemistry, biotech, the worldwide web-based economy and a whole range of efficient, renewable energy and materials technologies. These latter innovations were largely ignored by Wall Street due to those fallacies in economic textbooks and their EMH underlying most financial models: CAPMs, Value at Risk, Black-Scholes-Merton Options Pricing as well as security analysts’ asset allocation “buckets” which still lack a sustainability sector. Solar, wind, geothermal, whose annual potential exceeds total reserves of fossil fuels, are lost in their Energy sector ( still dominated by oil).
Energy efficiency was lost to investors’ view until Bloomberg and FTSE began noticing their rapid paybacks of 12-24 months, obscured by textbook economics ignoring the “externalities.” The FTSE’s EO Energy Efficiency Index highlights these investment opportunities – now increasing as subsidies to fossil fuels are cut in many countries and making such cuts is on the agenda of the G-20.
Calvert, Pax World, Domini and other SRI funds pioneered, along with Alice Tepper Marlin’s Council on Economic Priorities, the new metrics of ESG company valuation. At the UN, Dr. Elizabeth Dowdswell, head of UNEP, pioneered UNEP-FI, bringing global financial groups into awareness of how economies are dependent on nature’s ecosystems. Thoughtful financiers pondering their persistent crises are learning from ecologists how to correct financial models, while recognizing that finance is a part of our global commons (www.transformingfinance.net).
Out of UNEP-FI, many initiatives have now joined the global Green Transition: UN-PRI with 800 firms with assets under management of $25 trillion; the UN Global Compact with 5300 signatory companies to its 10 Principles of Global Corporate Citizenship, the Green Economy Initiative with UNDP, ILO and the new TEEB analyses of the value of ecosystems and biodiversity as material to asset valuation. In the private sector, SwissRE, CERES, the GRI, REN 21 and WWF joined in pioneering new metrics, while new stock indices and market letters covered the emerging green sectors, companies and investors. Among individuals, our research with Globescan shows the growing awareness of the value of environmental considerations to overall wellbeing.
By 2003, I had decided that it was time to launch Ethical Markets Media to help reform markets and grow the green economy globally. My green investments were flourishing. Pioneers Matthew Kiernan, founder of Innovest, Nicholas Parker, founder of Cleantech, Jeffrey Leonard and all the daily news of the Green Transition needed a special media voice. As I posted all the daily news on Ethical Markets, I saw the need to track all the private investment in green sectors to give a clearer overview of this global sustainability sector. So, I created the Green Transition Scoreboard® and selected only those technologies and companies I knew would meet the long-term criteria of sustainability. Thus we deliberately omit many investments we believe are mistaken (see page 3).
It’s time to end fossil fuel subsidies which would cut deficits and return billions annually to taxpayers and allow the green sectors to compete on a level playing field ( HYPERLINK “http://www.globalsubsidies.org/” www.globalsubsidies.org). Today, 70% of all US federal subsidies go to oil, natural gas and coal and another 15% to ethanol – not to mention the hidden subsidies to nuclear. As James Fletcher, former NASA Administrator told our Technology Assessment Advisory Council in 1976, if all of these subsidies over past decades had instead gone toward solar, wind, all renewables and efficient energy, the US economy would have been 100% powered by these renewable sources by the mid-1970s. Our Green Transition Scoreboard® now tracks this technology evolution through these investments, shifting from the past to the future. The World Social Forum has been saying since 2000, “Another world is possible.” The Green Transition Scoreboard® details this new 21st century economy and how we are moving toward this cleaner, greener sustainable future.
Creator, Green Transition Scoreboard®
President, Ethical Markets Media (USA and Brazil)
Author, Ethical Markets: Growing the Green Economy (2006)
Solar Irradiation versus established global energy
resources Solar Generation 6, EPIA 2011
Beyond GDP: International Public Opinion on Measuring National Progress 2010, Globescan and Ethical Markets Media, January 2011