Wednesday, September 6

IceBlok: Blood and Gore Explain Sustainable Investing

Anyone involved in business needs to understand a new dynamic in the capital markets- sustainable investment. Al Gore and David Blood, with their investment vehicle Generation Investment Management, are championing incorporating sustainable performance alongside traditional financial accounts. The aim is that once capital markets "price in" other factors, the profitability of companies will be turned on its head.

So a company that ships goods around the world, sources low-cost goods from polluting factories, and doesn't consider re-use/recycle of its products, will find its financial standing hit. Why? Let's explain:

Traditional Finances:
- Cost of Goods
- Fuel/transport cost of shipping
- Cost of packaging & distribution

Sustainable:
- Cost of Goods: Including the impact of pollution on the environment
- Fuel cost of shipping, plus the carbon and environmental impact
- Cost of packaging, cost of safe disposal, carbon impact of distribution

Generation's message is getting through. Branson's investing $1b in Green Fuels, Goldman's is putting $1b. VC's invested $917m in clean-energy start-ups last year.

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