by Stephanie Sheridan

here are 3 macro company trends i witnessed as founder of ipai, celebrating the company’s 18 month anniversary:

1) research

(totally)

2) science trumps finance

(pretty much)

3) increase network influence

(activism is a good thing)

Stephanie

founder, ipail3c

Nike says Just Do It and they Do It
Running gear replaces books and cafe along M Street in Georgetown, Washington, DC

Listen, Comment, Share and Enjoy!

http://soundcloud.com/stephanie-sheridan/founders-muse-cash-is-king-for

By Miriam Kochman

Over the past few years, there have been a number of newspaper articles about sustainability, especially leading up to the much-discussed Rio +20 UN Conference on Sustainable Development. Sustainability used to be seen as the domain of environmental scientists, environmental policy wonks, and “earth-friendly” advocacy organizations. However, sustainability has also been adopted by the private sector. And it’s not just boutique organizations trying to appeal to environmentalists – major multinational corporations are on board, too.

Companies across the globe are investing resources in sustainable business practices, taking stock of the inputs they use and the waste their manufacturing facilities generate. Some of the larger companies are even measuring their annual greenhouse gas emissions and exploring ways to reduce their carbon footprint. These companies feature their “sustainability reports” on company websites, and they regularly upload them to the Global Reporting Initiative or the United Nations Global Compact, two of the most well-known websites publicly displaying sustainability reports.There has been significant private sector interest since these reporting websites were established – and the really fascinating thing is that the reporting is entirely voluntary. Companies are creating “director of sustainability” positions on their own, even devoting whole departments to “Corporate Social Responsibility.”

So what’s the deal with sustainability reporting? Why now? Why is the private sector devoting time and energy to a concept that appears to be separate from product development, growth, profit, and all of the other things that the private sector is supposed to focus on? And, is sustainability reporting just a fleeting concept, or something that will become ingrained in business models for the long term?

Data from the past decade seem to indicate that sustainability reporting is here to stay. As the business world grows more competitive, companies have realized that they can reduce long-run costs by reducing their own waste. If they can build sustainable business practices into the heart of their company now, they will come out on top in the long run when compared to their competitors. And, long-run cost reduction is absolutely in line with growth and profit.

If you look at sustainability reports published between 2002 and 2011, an increasing number of companies are voluntarily recording their own information, or hiring outside auditors to review their energy usage and waste production. It has become a mark of a company’s dedication not only to do good business but to maintain a positive reputation in society, and reputation is something that all company CEOs understand.

The following graph shows the increasing number of sustainability reports published on the Global Reporting Initiative’s (GRI) website between 2002 and 2011:

Source: GRI, https://www.globalreporting.org/Pages/default.aspx

As of 2002, 147 companies had published reports. By 2011, that number had increased to 2809 – an increase of 1800%. Regardless of whether company executives are skeptical of the concept of sustainability, there is no denying the power of this increase.

Well, one might say, sustainability reporting is all well and good, but how widely is this practice adopted across different business sectors? Is it only the tech companies or the “natural foods” companies that I’ve been hearing about lately? Not so. Organizations producing sustainability reports span retail, consumer goods, energy, and other sectors. For example:

Source: GRI, https://www.globalreporting.org/Pages/default.aspx

Companies have come to realize that they can appeal to a wider audience if they do engage in sustainable business practices. This is a trend that’s here to stay, and it’s one that IPAI wholeheartedly applauds.

In our upcoming conference, Entrepreneurs in the Green Economy, we seek to highlight the energy created by the private sector in its dedication to the green economy (pun intended). We firmly believe business and sustainability are intertwined, and we look forward to a lively discussion at the conference on September 20-21, 2012 in Washington, DC.

Hope to see you there!

A famous and fundamental lesson taught over and over again is that everything comes at a price. Even carbon comes at a price; the market just hasn’t figured out how much that comes to quite yet. While this post will not delve into the detailed economics of pricing carbon, it is important to note that there are different pricing methodologies attached to carbon.  

Everything comes at a price

Christine Lagarde Is Taking Leadership On The Environment

What we are certain of at IPAI is that ignoring CO2 emissions will have a very steep price tag attached to it. Last week we recognized the international movers and shakers who are calling for a sustainable future, and part of this involves encouraging green investment. To get this investment right and reap optimal returns, we will need to get our prices right.

Christine Lagarde, Managing Director of the International Monetary Fund (IMF) recently sent a clear signal to the financial markets that for lack of a better alternative in the urgency to deal with climate change, we must price carbon. Among the first to recognize that “emerging markets” have already emerged, Lagarde continued to take bold steps with her recent statement identifying the ways in which the IMF will send clear signals to the financial markets on sustainability. Under her direction, the IMF is pushing for the emergence of crucial market mechanisms to help save the markets from bearing the brunt of climate change. In short, we need to price our scarce resources better. What we need is a price for carbon.

Einstein said that insanity is doing the same thing over and over and expecting different results. We have seen the financial disasters, which have arisen out of bad pricing and excessive risk taking. To put it simply, doing nothing about climate change because we have yet to price our resources properly, would be insane. Ignoring the price now, not investing in a carbon neutral future would mean unprecedented costs in the future necessary to create a new environment and new energy sources.

International Monetary Fund

As Lagarde notes, not only will carbon pricing stimulate revenue and promote fuel switching and drive innovation but it also provides the much needed opportunity and incentives to get us onto the right path, to a sustainable future.

As mentioned in my previous post about green investment, the establishment of feed-in tariffs and renewable portfolio standards are a policy mechanism that is useful but not sufficient. Should we want a stable market we need stable pricing. The most straightforward way to do so is through carbon pricing, which is by no means a simple process.

What we need are individuals willing to step up to the challenge. Lagarde is one such individual. She recognizes that, “Sustainable development first needs macroeconomic and financial stability,” and finally, “getting prices right must underpin the green economy.” Incentives are key to unlocking this solution to the market. Specifically, macroeconomic factors and triple bottom line accounting, both of which rely on carbon pricing.

For Lagarde, getting sustainable development right in the turbulent global market means rekindling demand, ensuring that today’s demand leads to sustained growth tomorrow.

Lagarde notes that we need a world which will invest in stability and growth. The IMF is calling on the international community to help vulnerable countries navigate the rough waters where climate change is creating somewhat of a storm and the global financial crisis is creating large waves. The proposed navigational instruments are to increase resources “for concessional lending” to meet these ends.

The simplest thing that the IMF thinks they can help with is to get prices right. More specifically, this means utilizing fiscal policy to reflect the harm that is done by our current practices to be factored into the prices we pay, in particular through environmental taxes and emissions trading systems. Not only do these options provide a powerful incentive to invest in a sustainable future, but they could also provide revenue that is badly needed by national governments.

“Let me be clear,” says Lagarde, quite frequently. If her words arent clear enough we can look to her hand gestures.

To these ends the IMF is expected to create guidelines for developed and developing countries describing how to get these prices right. IPAI will be following these developments closely and sharing them with you. After all, we believe information is one of our best weapons for the war on carbon and our best tool in ensuring a sustainable future.

This is, “the idea that we should strive for economic growth, environmental protection and social progress at the same time,” as Lagarde puts it.  When things get tricky we have to take things back to the basics. We need to develop our own macroeconomic and financial stability. In a single word, we need prices.

So, if we’ve managed to convince you of prices, let’s talk more specifically about what is being done to create these prices. For this we turn to the IMF’s fiscal policy to mitigate climate change (http://www.imf.org/external/Pubs/FT/books/2012/climate/climate.pdf), which was still in pre-publication at the time of publication. Here beings a short review of the publication:

Fiscal instruments such as carbon taxes or cap-and-trade equivalents should be at the center of policies aiming to reduce carbon emissions associated with energy. This is because carbon emissions from energy account for 70% of Greenhouse Gas Emissions (GHGs). These instruments will provide governments with much needed revenue, which can significantly contribute towards fiscal consolidation challenges as well as ensuring the construction of fairer tax systems.

Policies must further reduce the costs of mitigation, to ensure policies can be sustained over time whilst simultaneously reducing emissions. “Carbon pricing also strikes the cost-effective balance between different emission reduction opportunities because all behavioural responses are encouraged up to where the cost of the last tonne reduced equals the emissions price,” noted the IMF document.

Carbon pricing – What can we learn from Europe’s Carbon Trading System?

As we look to local as global it is noteworthy that the document suggests a price floor as a promising way forward, as this would be significantly easier than agreeing on annual emissions targets (as has been seen at the various Conference On The Parties Meetings).

So far studies have suggested that a reasonable starting price for emissions in the countries which are characterised as “large emitting countries” would be around US$20 Per Tonne of C02 and possibly more by the year 2020.

A price range of US$20-40 per tonne is slightly risky as it would mean the stabilization target for projected global warming would be between 2.9-3.6 degrees Celsius and an atmospheric concentration of carbon between 550-650ppm. The risk is that this is somewhat higher than the stringent 450ppm stabilization policy promoted by the IEA (International Energy Agency), which aims to keep warming to around 2 degrees Celsius; however, the IMF feels the the ability to achieve the less stringent target is more realistic.

The IMF offers a precise and well-planned-out document, which would be beneficial reading material for anyone interested in understanding future markets, be it in business or as a citizen. A final invitation is extended to finance ministries, because as they become more involved in the carbon pricing policy, IMF recommendations provide a universal drawing board from which to construct policy. This is crucial not only because of the significant revenue at stake, but because these proposed fiscal instruments are an extension of the fuel tax systems already in place. All in all, carbon pricing is an opportunity not to be missed.

Carbon occurs in all living organisms, but our atmosphere is too saturated with carbon and this is causing harm to our ecosystems. Pricing carbon emissions will help solve this problem.  The IMF offers a roadmap for global leaders to adopt.

Perhaps Money Does Grow on Trees

The world’s’ great leaders, now, more than ever recognize the growing threat to humanity and our planet associated with our unsustainable existence. One cannot help but wonder what effect our transition to integrate sustainability into our lifestyles and businesses will have on the financial markets. Perhaps the answer lies in the latest developments on the green investment scene.

Given our turbulent financial climate, any additional changes into pioneering fields of technology and investment seem particularly daunting. However, in order to fill an increasing disconnect between our resource usage and the availability and harmful effects of traditional fossil fuels, markets have no choice but to adjust, making room for renewable energy.

From our point of view at IPAI, we see the right signals from international movers and shakers to suggest that investing in green is not only a responsible, but also a necessary move. UN Secretary General, Ban Ki-Moon named sustainable development as a top global priority. “Achieving sustainable energy for all is not only possible, but necessary. It is the golden thread that connects development, social inclusion and environmental protection,” said Ban Ki-Moon. (http://www.sustainableenergyforall.org/news/item/122-rio-gala-press-release)

Green Dollars

The growing consensus over the potentially catastrophic consequences we are to encounter if we do not deal with our greenhouse gas emissions, if we do not find a way to stabilize climate change, is too great to ignore. The same process for evaluating traditional investment decisions can be applied to green investment: Interpret available information and follow market signals.

Proper pricing (more on this in a future post, so stay tuned) will be crucial to creating a well-functioning market where we can optimize our returns from green investment decisions.

While the market in general has information about green investment, this remains a relatively new field in economic literature. In Finance and Development (June 2012) Luc Eyraud and Benedict Clements, two economists at the International Monetary Fund (IMF), wrote about these information gaps. (http://www.imf.org/external/pubs/ft/fandd/2012/06/eyraud.htm

Firstly they note, “For all the importance given to boosting green investment, however, surprisingly little research has been done on the topic. The concept is relatively new and not defined in economic literature.” Secondly they note, “There is no standard definition of green investment. We define it as the investment necessary to reduce greenhouse gas and air pollutant emissions significantly.” They go on to define various investments which make energy generation “less polluting,” reduce energy consumption and how these investments extend to emerging technologies. Technologies include wind and solar PV as well as the more well established nuclear and hydro-power.

Renewables Are the Fastest Growing Form of Energy Consumption

The IMF publication further discusses feed-in tariffs and renewable portfolio standards. Compiling the cost of policy tools that bolster green investment is not easy, however. Analysis must include a careful look at tax breaks, loan guarantees, and quotas.  Statistical results prove that while feed-in tariffs support green investment, they are not always efficient market mechanisms. Furthermore, the policy market is anything but clear. In both European and US markets, companies struggle to adjust to the policy changes in feed-in tariffs. To be clear, green stimulus financing is anything but simple.

What does the market look like overall?

We are currently experiencing an investment boom in renewable energy technologies, characterized by growing investments over the last decade. These investments reduced the cost associated with adopting renewable technologies. However, any momentum gained has fallen on the decline owing to our turbulent global financial conditions.

“Renewable green investment has now become a global phenomenon. It grew steadily in all major regions until the onset of the economic crisis,” report Eyraud and Clements.

Compared to its peers, the US invested the lowest amount of stimulus money in the green economy

China Showing Market Leadership

Despite declining overall trends, China continued to invest heavily in renewable energy projects.  These bold investments consequently posed a great deal of competition to the US, leading to industry lobbying for policy-driven financial protections.

Clearly, the appetite for green investment continues to fluctuate based on public policies and macroeconomic factors.

So where do we go from here?

Trends suggest green investment is already in motion, albeit sluggish due to financial instability. Whether evaluating investments based on traditional financial analysis and/or incorporating metrics of sustainability, green investment is smart investment.

The Price Is Right

IPAI applauds leaders who stress the urgency in getting pricing right for green investments to gain consistent momentum. In particular we have been following the work of IMF Managing Director Christine Lagarde. In a future post we will delve more deeply into proper pricing as we strive to bring you the latest information and analysis that will help you on your path to a sustainable future. We are with you every step of the way.  As we move forwards we will outline the aspects of a healthy macroeconomic environment to support green investments.

Prices Currently Do Not Reflect The Risks Associated With Climate Change

This article will provide several examples of climate change innovations in the private sector and describe a unique upcoming conference focused on entrepreneurial solutions to climate change.

Over the past few days, numerous journalists commented on the disappointing outcome of Rio +20, the recent UN conference where 188 country representatives discussed green economic growth and poverty reduction. Heads of state reaffirmed commitments made 20 years ago and generated plenty of paperwork about “The Future We Want.” It’s great that these leaders are willing to discuss sustainability and climate change so publicly. But so far, their discussions are akin to celebrating the discovery of a coffee plant and then waiting for someone else to go roast the beans.

Luckily, the Rio +20 conference also attracted representatives from non-profit organizations, NGOs (non-governmental organizations), private sector companies, and start-ups. These folks are already mobilizing as quickly as they can. They are not waiting for policymakers to pass legislation acknowledging that something needs to be done about climate change. No one told them that they needed permission to care. Thank goodness for that.

As IPAI founder Stephanie Sheridan stated recently:

…..Why are we waiting for permission from governments to transform into a clean energy economy? We must take the most effective methods of our institutions, our globalized communication systems, and our knowledge of ecosystems to unlock the trillions of dollars worth of innovation currently waiting for permission from an antiquated system in which governments communicate the next level of development in the private sector.

There are numerous examples of individuals taking it upon themselves to lead the climate change discussion forward. For example, when the World Bank held an ‘Apps for Climate’ competition, contestants from Macedonia, Bolivia, the UK, and others developed smartphone apps that measure greenhouse gas emissions and educate people about climate change.

Then there are former corporate employees who realize the importance of innovation and establish their own businesses. Carbon Lighthouse helps companies reduce their carbon emissions, adding value to the economy while protecting the environment.

In addition, the new ‘social investment’ sector is encouraging companies that commit to sustainability. Organizations like Women’s VC Fund support sustainable business practices, whether corporate or entrepreneurial, focused on both economic growth and resource conservation.

At IPAI Global we are adding value to these great efforts by generating discussion around innovation. On September 20-21, 2012, IPAI will host a conference on Entrepreneurs In The Green Economy (http://www.innovatorseconomy.com/). This dynamic event will center around innovation from the ground up. Business leaders, start-ups, academic institutions, and investors will come together to support bold, green economic growth. We’ll see you there, no coffee roasting required.

Market-Driven Solutions for a Sustainable Future

It’s a hot summer day and I am sitting here with my sweater zipped to my chin. Anyone who has ever worked in a heavily air-conditioned office building understands the futility of trying to turn off the blasting air, or wondering why we waste energy chilling the building to such low temperatures.

With all of the recent publicity about gas pipelines and electric cars, it’s easy to see that the demand for energy is growing day by day. The US population continues to expand, and Americans continue to demand more energy for everything from refrigerators to cars to iPods. We have become so accustomed to using these devices that we hardly think about it. On the industrial side, corporations use enormous quantities of energy to produce their products and ship them across the globe.

Energy is a necessary tool for economic growth. It would be great to reduce our use of fossil fuels, but how do we scale up sustainably? Look to the private sector, to the largest and fastest growing companies, and you will see a pattern emerging. Just as the organic food market was a bottom up, consumer demand-driven movement that led to legislation, corporate sustainability appears to be driving what will one day be legislation to guard our atmosphere and resources.

Although environmental legislation does exist, it is insufficient given the environmental challenges we must confront. Furthermore, current economic difficulties restrict the government’s ability to devote additional resources to environmentally related legislation. Markets, however, continue to innovate.

Industries must consider sustainability now because their very existence relies on access to affordable resources and inputs for their products.  The private sector has begun to transform itself, and it is moving faster than the environmental legislation process. Major corporations are embracing change, taking steps such as measuring and reducing greenhouse gas emissions and reducing energy waste in their supply chains. These investments are paying off because sustainability is good business. In 2010, for example, GE, a proven leader in sustainability, outperformed its peers in the financial markets. Its stock price grew by 21%, while the S&P 500 Index grew by 13%.[1] GE is innovating and others are taking notice.

Companies such as Kraft Foods [2] and IBM [3] also view sustainability as an important industrial opportunity. From these companies’ perspectives, a reduction of energy use means a reduction of waste and an increase in profits. Companies that compete to reduce their energy consumption will reduce their costs and also attract consumers who favor socially responsible businesses. In today’s market, no company can afford to be left behind. For example, Kraft has committed to reducing 100 million pounds of packaging material from its products by 2015[2], and IBM has already taken significant steps to reduce its yearly water usage.[3]

Another change is that companies are starting to collect information about their own energy and resource consumption. It is becoming more and more common for large corporations to publish annual “Sustainability Reports” highlighting their achievements over the past year. This has led to greater corporate transparency. As energy prices increase and consumers begin to value socially responsible business, more and more corporations are likely to follow suit.

Local communities have also begun to highlight companies that value sustainability, rewarding their efforts by increasing their visibility to the public. For example, Washington DC recently hosted Dupont Green Week (http://dupontgreenweek.com/), a three-day conference that celebrated businesses working to reduce their carbon footprint.

Given the clear economic advantages of sustainability, more companies are likely to shift their business practices in the near future. While legislators debate the pros and cons of the green economy, the private sector has identified sustainability as a critical step for growth and success. So as I sit here debating whether to put on another sweater, the warm fuzzy feeling I have regardless of the temperature is that the market IS innovating to provide solutions for the most daunting challenges of our time.

[1]http://files.gecitizenship.com.s3.amazonaws.com/wp-content/uploads/2011/07/ge_2010_citizenship_report.p
[2] http://www.kraftfoodscompany.com/mediacenter/country-press-releases/us/2011/multi_media_05112011.aspx
[3] http://www.ibm.com/ibm/environment/conservation/

A recent panel brought to light several challenges we face in trying to grab hold of a low carbon future. The same panel suggested several master keys to a door we would otherwise chalk off, while staring, from the bottom of a long tower, up at a Rapunzel with upsettingly short hair.

While we would love to divulge the details of this magical panel, brave enough to suggest a key to a seemingly elusive door, we will have to appeal to your appreciation for mystery. Without sounding too much like Lewis Carrol’s Cheshire cat, we have to keep it mysterious, and hopefully this way keep some friendships intact. We assure you that the panelists made far more sense than anything to come out of Wonderland and each is in possession of a long string of credentials. However as we’ve already brought up Lewis Carroll let’s stick to the Wonderland analog. Without further adieu, we’re late, we’re late for a very important date.

The landscape of Wonderland is tricky to navigate. Climate change is one of the most critical global challenges of the 21st century. We are rising to the challenge by attempting a transition to a clean energy, low carbon future. However, in order to do so we need businesses, investors, fund managers and the government to work together to increase the amount of investment flowing into low carbon energy and infrastructure around the world. Speaking to these challenges are the guests of a very intriguing tea party: the Mad Hatter who deals in private equity, the White Rabbit who is a pioneer and participant in green markets, Alice who works with New Energy Finance and the Caterpillar who deals in finance for alternative energy. The party is of course hosted by the March Hare.

Here is what the closest spectator, the Cheshire Cat heard:

Alice highlighted the need to bring in more investment and to help policy makers to make more informed decisions, but in order to do this there is the need to bridge the information gap.

The Mad Hatter anticipates that there will be a change coming within the next 30-40 years and that the pressure on industries and economics would be steered into the waters of efficiency. Thus improving their use of energy and reduction of their environmental footprint. Mad Hatter said that the focus must be on the interim applied technologies, and to break down the barriers to this interim applied technology investment.

The Caterpillar spoke to the equity market being in the dish. It’s a bad time for equity and things aren’t looking good for the future of project debt. With project risk avese lenders, the majority of debt is still being taken up by bank debt rather than project bonds. The Catepillar also looked skeptically onto Basel III, who is forcing banks out of project finance, very quickly. The main smoke coming from the caterpillar’s mouth seemed to be a warning signal about the debt markets going forwards. The equity markets are already troubled but with the rising influence of Basel III, debt markets could face the same fate in 2-3 years.

White Rabbit has led companies down the hole to the sustainable wonderland before. In his experience one of the challenges has to do with signals and labelling in order to separate “green” from “not green” and to identify the technologies going forwards. This is a job for the public sector, signalling and labelling these things for the markets. After which, institutions like the World Bank and the IFC are needed to aggregate green assets.

The March Hare, who has been hosting the tea-party for these interesting creatures, is a head of  investment funds and a chief investment strategist at an International Investment Corporation.  He posed the question: what is needed? Do we need to create new instruments or is it really a question of implementing the ones we already have?

The White Rabbit and the Caterpillar did not seem to be in agreement over this point. The White Rabbit recognized that it’s tempting to create a good class, but in the mix of Wonderland’s bureaucracy creating a new class is not good for changing the system. The Caterpillar instead felt that this is exactly what is missing. If capital is not flowing where you need it to go then you have to create rules, so we must be missing mechanisms. Entrepreneurism can happen in both the public and private sectors, all that is needed is to open up the doors to new ideas and institutions. He also spoke about separating out by letting the private bond buyers flow the money.

The Cheshire Cat, watching from the tree couldn’t help but wonder whether the Caterpillar was insinuating there is not enough separation between bond buyers and institutions. He also questioned why the Rabbit thought loan guarantees are bad. Smiling and left unsure he continued watching as the tea-party carried on.

The Mad Hatter felt quite opposed to the Caterpillar, assuring the table that long term stability was needed, not new mechanisms. The capital markets are equipped to deal with project finance with regularity. Projects cannot simply be structured in a particular way because they are en vogue. Mad Hatter advocated for the markets doing the choosing of winners, not the governments, not the direction of en vogue, it is the markets that will get us where we want to go.

It’s a question of stability, we need sovereign guarantees and government compliance, such as for phasing out subsidies for fossil fuels, Alice chimed in.

Cheshire, upside down in his tree, smiled, when he heard someone say: what we need to do is connect the dots between the private and public sector which are respectively operating at the macro and micro level. All that is needed to align the tools. And with that he vanished, leaving only a half moon smile, hanging from the tree.

Dupont Circle Fountain

Local is global.

So what does this international economics vagabond with a SAIS degree do with the Local is Global concept in Dupont Circle?  Amidst the onslaught of climate change statistics, I realize that I am a global citizen who is COMPLETELY overwhelmed with a sense of duty as a trained American consumer, to contribute to the next wave of carbon neutral products.

Alas, Dupont Green Week!

Together with the Dupont Circle Incubator and RGI Events, IPAI is sponsoring this tremendous impact event that is set up to accomplish 3 goals in its inaugural year, a 20% increase in the following: 1) The number of restaurants recycling over 90% of their waste 2) Commercial and residential buildings served by renewable energy

The 3rd measurable goal of Dupont Green Week is to increase carbon offset for the neighborhood carbon producing transportation.

This feat should, according to statistics, be achievable.

2008 Ranking of Washington, DC in SustainLane Survey of U.S. cities

In a 2008 survey conducted by SustainLane, Washington, DC ranked #15 among other U.S. cities on a number of rankings including LEED buildings (#2), Green Economy (#20), and City Community (#1). Given the positive momentum, design of the city and availability of resources here, there is fertile ground in Washington, DC and Dupont Circle in particular to embrace more aspects of sustainable living. Dupont Green Week is designed to both showcase and challenge the next level of development for the neighborhood.

We hope that you will join us in supporting the success of Dupont Green Week, to achieve metrics that can serve as encouragement for the carbon neutral lifestyle to flourish.

Dupont Green week will take place May 17 – 20, 2012. For more information, please visit dupontgreenweek.com.

via Home Depot Energy Efficiency Bolg

The last part in this series on energy markets deals with efficiency. After going to all the effort to create energy, much of it is lost along the way! In addition to creating energy, the transmission of energy and its effectiveness are big issues. Economists love the word efficiency, and the concept applies to energy markets quite well.

The facts regarding wasted energy are astounding. The issue is both personal and one that we take to the workplace. Not only can we make changes in how we retrofit our residential real estate, commercial buildings, those places where we work, shop and play, are also undergoing changes to improve efficiency.

According to the U.S. News and World Report, “commercial buildings and manufacturing plants account for nearly half of all U.S. energy consumption, as well as nearly half of all U.S. greenhouse gas emissions.”

U.S. Green Building Council

The popularity of LEED (Leadership in Energy and Environmental Design), which is a framework for green building design, testifies to the  momentum in the real estate and construction industries for improved energy efficiency. The ROI (Return on Investment) makes sense for investors. The success of LEED, and the effectiveness of improved energy efficiency/reduced GHG (green house gases) based on metrics and priorities, serves as a fantastic example for other markets to follow.

Coupled together with LEED, companies active in alternative energy markets may have a captive audience of investors who see the direct benefits of being early adopters in energy efficiency.

World Leaders at the World Future Energy Summit 2012

Kris Jenner and Kim Kardashian in Dubai

Today is the first day of the World Future Energy Summit in Abu Dhabi. This summit will effect energy markets, as many of the topics discussed will further the global dialogue and development of renewable energies.

About the Summit: You will have to totally excuse me because I do not know a whole lot about the Middle East ( My area of geographic focus has been sub-Saharan Africa).  From her show on Bravo, I do know that Kim Kardashian was in Dubai in October to endorse Millions of Milkshakes.  Just a side note about the choice to support the dairy industry in Dubai.  I don’t think this is a carbon-neutral industry (for more info on your carbon footprints, see ZeroFootprint).  Regardless, Kim and her mother sure made a splash; I would say they helped further pave the way for American women doing business in the Middle East. Hopefully, next trip Kim will endorse solar panels . . .

The millions of milkshakes in Dubai is about 2 hours north east of where the World Future Energy Summit is taking place in Abu Dhabi. And now, on to energy markets . . . .

Contribution of energy prices and other factors to total real consumption, James Hamilton Brookings Papers, Spring 2009

Whilst I will not be attending the World Future Energy Summit, the conference program looks incredible. The issues being discussed are topics we should take to heart back here in Washington. From the graph above we can see that energy prices have a direct correlation to consumption patterns, and so anyone reliant on people buying things, has a direct interest in there being efficient energy markets.  We see evidence from this in the graph above, highlighting that from the oil price peaks in 2007-08, as prices increased, consumption decreased (the solid black line above).

Co2 Emissions Map, World Development Indicators

The fact that energy markets have such a big effect on our daily lives is no surprise, but the ability for us as consumers to help support the switch towards renewable energies is not as tangible.  The Future Energy Conference is part of a larger phenomenon wherein we are witnessing a global shift towards market solutions that tackle energy inefficiencies.  Conferences like the one this week in Abu Dhabi help bring people together to further the momentum towards a sustainable shift in the types of energy we use.  In this sense, renewable energy will continue to be a larger part of our everyday lives, until we the day when we look back on this period of transition as a time when we were unfortunately still dealing with the horrible effects of a fossil fuels based economy.  Now, on to the conference superstars:

This week in Abu Dhabi, some Washingtonians will be speaking to a global crowd, including:

Janet Peace, VP Markets and Business Strategy, Center for Climate and Energy Solutions, Rutu Dave, Climate Change Specialist at the World Bank Institute, Mohamed T. El-Ashry, Senior Fellow with the United Nations Foundation, Carlos Pascual, U.S. State Department Special Envoy and Coordinator for International Energy Affairs, Andrew Steer, Special Envoy for Climate Change at the World Bank, and Timothy Wirth, President of the UN Foundation.

Janet Peace of the Center for Climate and Energy Solutions via http://www.c2es.or

And some non-Washingtonians: James Brown, President of the Utility Business Group at First Solar, Steve O’Rourke, Senior VP and Chief Strategy Officer, Sun Edison MEMC, Chris Hartshorn, VP of Research at Lux Research.

From the Entrepreneurs Panel: Steve Crane from LightSail Energy, and  Eric McAfee from Aemetis

The work of these individuals and the organizations and companies they represent is simply amazing. Again, markets can take the lead from these leaders. From a financing point of view, in the words of the summit:

“2012 could be a defining year for sustainable investing. As storm clouds grow – and refuse to move from Europe, what are the implications for the most ambitious utility-scale projects in future energy? Or is the doom and gloom overhyped by media titles keen to boost circulation and ratings?

How will the series of rolling crises in the Eurozone – a previously generous source of investment – affect the short term outlook for the next generation of projects? How will cuts in government subsidies affect future business planning? And where will the truly innovative financing models come from to save the day?”

LightSail Energy Storage Efficiency via http://lightsailenergy.com/

Mae Yokoyama Lux Solar Necklace (www.ecouterre.com)

Hark back to 2007, oil prices were up, and the discussion in the media, to my recollection, went beyond supply/demand influences, to the role of speculators. Were speculators benefitting from and unfairly influencing the price of a barrel of oil, as it rose past $50 towards $100?  The consensus seemed to be that market players do indeed influence the price above and beyond demand/supply.

Today.

Forget oil for a second. Let’s talk about renewable energy. Specifically, solar.

I took some time recently to learn more about solar energy.  Here is a great video that explains how solar power works, in laymen’s terms.

For years we have been hearing how expensive solar power is, though.  Speculators aren’t the cause of the high prices, however.  High market prices reflect the cost of materials and the inefficiency of the electricity generated by current technology.

Due to continued research and innovation, similar to the type of innovation that makes more memory available in smaller cell phones, solar power is becoming cheaper.  I inserted a great graph below that shows the crossover (projected to be 2020) when Solar Power will be cheaper than traditional power.  After this crossover the decrease will continue to be exponential, and by 2030 solar power will be half of traditional power cost. 

Solar PV Cost Per KW, By Ramez Naam (Scientific American, March 2011)

Prior to 2011 closing, a subsidiary of the famous Berkshire Hathaway, MidAmerican Energy Holdings Co., purchased stake in two solar energy projects, for an estimated total of less than $4Billion. Globally, the industry attracted $243 Billion in finance and investment.  China is the leading solar market in the world.  

The main reason this is worth noting is because solar energy does not in its production of energy produce greenhouse gases, the gases that effect the ozone and increase the detrimental effects of climate change.  

My best econ teachers always boiled what seemed to be ornate concepts down to two short sentences, one graph with two our three lines and a resulting market dynamic, a couple of stick figures.  Here I will attempt to do the same for energy.

So, what is the alternative to digging? Capture. A lot. The tag line for IPAI http://www.ipaiglobal.org is, ”Capture the Value in Sustainability.”

Note to self: Capture value.

Just capture it. Why not be an asshole and speculate.  Speculate that there is value in capturing energy from the sun. That just sounds silly. Of course there is.

Stay Tuned for Part 2 in this 3 part series.

Day For Night Solar Dress by Despina Papadopoulos (http://www.5050ltd.com/who_we_are.php)

by Stephanie Sheridan

One, ie. a person, more specifically a woman, OK fine, that would be yours truly – cannot call themselves an economist without loving the craft of writing.  What gives me credence to say this? Well, writing is a powerful mechanism with which to disseminate ideas, to communicate data and trends.  Hence, the art of perfecting one’s craft through writing is a necessary activity for any economist.

Granted, there are many mechanism with which to do this, via scholarly journals, magazines, e-publications and even a personal blog! There are moments when it is fun to celebrate the art of the craft when you connect to other economists.  Today is such a moment.

This week, in preparation for a fellowship application to Echoing Green, my research led me to a review of work by Henri Theil.  (pictured here along with other econometricians in the Econometricians Hall of Fame), is considered a Father of Econometrics, which is the application of statistics to economic theory.  In any case, Theil wrote a lot about the concept of the Global Consumer.  The ideas he pursued were that, when taking into account differing levels of income by country (ie. developed and undeveloped), people have similar patterns of consumption.  This is fascinating (!) because although Theil passed away in 2000, we see a convergence of consumption desires and patterns happening at an accelerated pace now.  (Rising per capita incomes combined with population growth in a number of countries are the driving forces behind the projected growth in global meat demand, for example.) (The car industry is the biggest it has ever been in 2011.)

Is it safe to assert that people have the same patterns of consumption as they increase their income, regardless of their geographic location?  My own experience says yes.  This bodes well for helping encourage the Global Consumer to be sustainable because we can apply the same patterns of behavior across geographic locales.  The archetypal myth so ever present in love stories and epic tales of bravery and conquest, would suffice to say, can be applied to Consumer Behavior, and therefore Sustainability behavior.  It IS Easy Being Green.  Why? Because somewhere within each of us, we can all understand, based on our patterns of consumption. Timing, education and incentives will help the Global Consumer enter the 21st Sustainable Century.

by Stephanie Sheridan

The holidays are a time to reminisce : In 1996 I visited London over the holidays, as a sophomore in high school, on my way to Krakow for Christmas. As I toured the city with my brother, we were at once intrigued and skeptical by the girl band phenomenon that seemed to have taken over the city.  On buses, in music stores, playing in speakers everywhere we went, it seemed to be the same songs by The Spice Girls.

Typically shunning popular culture, I was skeptical of the phenomenon. Sure enough, about 6 months or so later, The Spice Girls hit the U.S. market. My reaction to their music stayed basically the same, a little too much bubble gum pop for my taste (But who doesn’t love, ”Wannabe”? )

Music is not the only case when the UK has led the U.S. market in trends. The Spice Girls, lest I fail to mention the Beatles, are symbolic of another trend spreading its way increasingly accross the Atlantic. This is in the area of private sector activities and corporate structure.

While the U.S. is catching up with regard to embedding corporate social responsibility into everyday activities, the UK is much further ahead on corporate governance. However, need I remind us all that as with American culture, once things catch on, we love it bigger, faster, stronger. The exponential growth of states adopting both B Corp and L3C status is evidence of this trend (B corp legal structure was enacted in 2010 and L3C became effective to facilitate philanthropy movement into the private sector, in 2008. FYI, IPAI is an L3C. However, neither of these U.S. structures go so far as the UK Mark on governance structure). (There are now 480+ certified B Corps and the legal structure can be ammended into existing companies.)

The Social Enterprise Mark is a 2008 UK-born structure of incorporation that embeds bottom line objective into corporate activities designed to make all aspects of a company’s operations sustainable. This is an amazing move forward within the private sector, in much the same vein as B Corp ams L3C. Moreover, the structure is supportive of ushering people to ownership within the private sector that have traditionally been sidelined, yet are proving to be quite competitive, ”Social enterprises are twice as likely as mainstream businesses to have reported growth in the last year and are also more likely to be led by women, young people, and those from minority ethnic groups.”

A colleague recently pondered whether America has adopted a, Winner Take All, atitude. I would say recent trends are helping to debunk this. I sure hope we continue to take the Brit’s lead on this one and examine what companies do with profits.

Would it be so bad to be Posh Spice, afterall?

Happy holidays!

Free by Chris Anderson is a great book!  I picked it up as part of my homework as an economist.  Part of the nerdiness of structuring a company is exploring different revenue models.  Given that IPAI is providing a service (nothing tangible, ladies and gentleman, but certainly designed to support the most sustainable of all things tangible), the revenue model is a bit intriguing.

Free in Economic Theory

Free by Chris Anderson

Revenue models requires a bit of research, and this is what I found by reading Free: Free as a concept has been around, it is part of the marketing mix of introducing a product to the marketplace, and free helps increase brand awareness that then leads to products that are for sale that are less than free (Free as an economic model, however, is not talked about enough).  I found this pretty straight forward.  In fact, in an era when google and open source rule, where many facebook and mobile applications increasingly occupy more and more of our time, free is not to be taken lightly.

But what does that mean for a revenue model? Well, as revenue models go, “Free” is captured by B2B (Business to business) sales, while sidestepping the consumer directly (avoiding the “Buy Now” button).  How do companies make money then?  Advertising and referral fees seem to be the two biggest winners, although I am still not an expert! We all know about Google, who sells advertising.

Two companies of particular interest to IPAI are: Mint.com and Goodguide.com, because they are offering some great services to the U.S. consumer, in particular (remember the notion that we need to decrease the negative impact of our consumption to live and breathe sustainability).  Mint.com refers people to financial institutions by making suggestions for savings, Goodguide.com receives referral fees when customers buy recommended products.  (These products are both useful to help people start their Impact Balance, the first tool that I am developing (see: http://www.youtube.com/IPAIGLOBAL for a video explanation).

Free has been around and it remains to stay.  Freeconomics!

by Stephanie Sheridan

So, thank you to my friends and colleagues who recommended this Patagonia ad to me (see pictured here) after reading and seeing what I am doing with IPAI and how it connects to what companies are promoting.  Patagonia has been successful at raising awareness for the destruction that our behavior is causing to our world.  Their ability to highlight and now move towards promotion of sustainability through non-consumption is so incredibly energizing and powerful that it will galvanize the way we do business.

Stephanie Sheridan pictured in her Patagonia fleece, purchased in 2003. I proudly sport this thing, at least once a day from October through May! Photo by Mary Joyce Smith, December 2, 2011

How does this relate to the debt crisis?  By now you may realize that I am a loyal reader of the Financial Times, so I will again quote an article that has made a big impression on me, entitled, “Crisis Is A Game With No Winner”  The authors Milne and Mackenzie manage to articulate that the game of passing sovereign debt around is just that, and periods when business has seemed good have been just momentary rounds within the game of hot potato after (trickle down) we passed the potato.  I encourage you to read the article.

The crisis of sustainability has taken the form of debt because of the instruments we packaged our borrowing in: The basis of which those instruments are representative, the tangible goods, are responsible for the crisis in sustainability.  So, what does this mean for the various “Debt Crises”?

The debt crisis is a precursor to the sustainability crisis, but in reality it is a distraction from the sustainability crisis.  Perhaps we can call the issue what it really is, that of a Crisis of Sustainability:  Borrowing from the environment in order to finance present consumption without an understanding of how to repay the resources.  In order to stop the game of pass the ticking bomb, we need to design products that help us get out of sustainability debt.  That means we need to actively support and develop more goods that do not borrow from future generations in their supply chain and through their consumption.  It means we need to have a service sector geared toward enabling a way for companies to dig themselves out of sustainability debt.  And it means that consumers need further incentives to switch their behavior.

What does this mean for all of the debt?  It means that we need to look at market values through a lens of sustainability and stop kidding ourselves in our game of hot potato.  There is so much amazing work being done, and work that has been done in many cultures throughout the world for thousands of years that has to do with sustainability.  As we understand these concepts, government policies, and in turn financial services will be able to better understand how to support the private sector.

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To learn more about the consumer aspect of sustainability, please see Impact Balance information via the IPAI facebook site: http://www.facebook.com/IPAIGLOBAL

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As always, Thank you for reading!

Illustration by Kathryn Zaremba

At a conference last week, I was reminded that we are indeed winning the development challenge.

My biggest issue with development, and why I have been so incredibly tepid at “developing” other countries has been just that issue, What is development? **

What is development?

What is development?

Development, from an American perspective is so closely tied to an inevitable shift towards over-consumption of fossil fuel reliant goods and . . . the ability to increase purchasing power.  Of what?  That was my biggest question with development.  What am I facilitating people to increase their purchases of?

For a long time, my mantra was, winning the challenges in development means providing the opportunity for people to make a choice about consumption.  Create the environment for people to have the ability to choose, ie. Increase opportunity for people.  I always had an issue with this, but I stuck with it for a number of years.  Namely, after I got over my culture shock following my first time in Africa, I framed development as the ability to provide the opportunity for people to make a choice about consumption.   After I went into a drug store here, looking at all the bottles of shampoo, all the choices, I was mentally paralyzed by the fact that even with all these choices, there was still something missing.  Was that sustainability?

A deeply personal issue, we all have our views on development.  William Easterly has called it a White Man’s Burden.  In a critique of his book, Amartya Sen, urges a dialogue, as he so often does, on the issue, critiquing Easterly for being so conclusive.

In a Sen-like manner, the biggest gift I hope to give to my community is that of an inclusive dialogue about the most pressing issues we face in development.  I use the term development to include those issues facing any community on the planet, as we are all evolving and constantly adapting to the needs of our economies.

Through the basis of a company that I incorporated in May 2011, called the Institute of Policy Analysis & Implementation L3C (a low-profit limited liability company), I have created a business model that incentivizes consumers to quicken the tide shifts to consumption of sustainable goods.  Being in a circle of policy makers, I have a bit of a rare faith in the ability for the market to create our own incentives to help capture the positive effects created by an increase in the sales of sustainable goods.

The word of the day is innovation, and with an understanding that consumption is not going away, I find it exciting to ask the question: What are we consuming?

Illustration by Kathryn Zaremba

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I didn’t say it.  Worldwatch Institute said it, in a September 2011 report entitled, “Creating Sustainable Prosperity in the United States: The Need for Innovation and Leadership.”

“The United States finds itself at a critical juncture, as environmental degradation and resource depletion threaten the capacity of the U.S. economy to generate wealth for the indefinite future. The choice is not between the status quo and sustainability.  The choice is whether the United States builds sustainable prosperity through prudent choices now or declines into sustained impoverishment because it failed to steward its assets when it had the choice.

In a comparative analysis of sustainability, the United States ranks barely in the top third of nations.  Despite growing awareness of the need to build a sustainable national economy, U.S. output continues to be characterized by linear flows of materials, heavy dependence on fossil fuels, disregard for renewable resources, and resource use that is strongly connected to economic growth.”

** Please note that advances in health, safety, gender equality, environmental effects, etc. have been the result of amazing advances provided by development.  The views expressed here are my own and are intended to, in a Sen-like manner, increase a dialogue about sustainability.

Photo by Rachel Friedman

Happy Veteran’s Day!  Thank you to all the people that serve in the military, in every country and all over the world.  Thank you to all these people for promoting peace.

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So this whole concept of financial intermediaries.  Financial intermediaries allow for people to retire and for children to grow up.  Financial intermediaries create the space for society to navigate the delicate balancing act of financing consumption of goods and services given constantly changing supply and demand.  How much does this “greasing the wheel” cost? Apparently a lot, and just like a wheel, too much grease can cause the train to run off track and CRASH! Financial Crisis.  Hhhhmmm.

But do we get rid of large financial institutions, as proposed by the community bank movement?  This is such a fascinating and exciting discussion, and I hope we continue to talk about these issues for a long time.  The answer is not easy! And might I propose that indeed there is not one right answer.

Let’s say we all bid adieu to the Big Banks:  What would happen to the “knowledge share” of the economies of scale created by such a large and in charge business model? I support the “Buy Local” movement.  In addition, there are economies of scale built into the “Big Box” model that help increase efficiencies and breadth.  Let me bring an example from my less than stellar development and aid experience.  I will compare it to Wal Mart.

In the hills of the Santa Barbara region of northern Honduras, I traveled around helping deliver aid to the farthest and most forgotten populations. The supply chains did not reach this far, be it through helping farmers get their product to market to quality education reaching the community to sharing ideas to inhibit inbreeding, promote hygiene, education and empowerment through voting rights, etc.

So where does Wal Mart come in to this?  And how does it relate financial intermediaries, and even more importantly, Bank of America, who is servicing a ridiculous amount of mortgages, for example?  Well, if Wal Mart continues to build out their supply chain into areas that have been developing their international trade linkages for the past couple of decades, and because the chain can support a larger sunk cost investment, Wal Mart can be integral in helping small holder agriculturalists integrate into the fiat-based economy.  

Stephanie Sheridan, left, pictured with Hernan and Miriam Diaz in front of Casa Rosada, Santa Barbara, Honduras.  January 2002.

So, what is going on in finance right now?  Do we give people all around the world a credit card? Is that development?  Sure, it is part of it.  But the part that I have trouble with is, What are we proposing we all buy?  Are we going to keep supplying crap that pollutes, degenerates, in effect imposing a tax on future generations and current areas of the world (ie. Northern and Eastern Africa), where climate change is having a devastating effect?

IPAI, the company that I founded, is working on this issue.  How do we incorporate future borrowing into present consumption.  IPAI’s proposed “Impact Accounts” are being set up to allow you, the every day person, understand how much you are borrowing or giving to the future based on your present consumption.  The best part is: You place the value!  You are smart enough to understand these issues.  And by gosh, if you are currently “out of the loop,” if we do our job right, then you will have the  tools to make an educated and informed decision on what the “Impact Value” of your cup of coffee is, for example.

Back to the role of financial intermediaries.  The fact that velocity of money has increased so much, is incredibly high, is awesome.  It facilitates that flow of information, increases access to goods and services.  But, velocity without regard to spill over efffects is kind of silly. As an old boss used to point out after looking over my loan proposals, “Stephanie, that is like two sides of a triangle.”  Woops!

Next time we buy something, we might think, OK, what does this impose on a kid in Somalia?  How does this impact my grand children.  Because, let me tell you girls, even if you don’t get married, you will still continue to consume.  Bottom line is, we consume a lot of stuff over our lifetimes. And you probably will have children (the U.S. is at replacement rate for our population ~2.1 kids/female). And those children will probably want to have children.  But what will be left for those children? Who will be their friends, what kind of world will they inherit?  What is your inheritance? Cash is not enough any more, unfortunately, the earth is too demanding.  Impact is here to stay and I support it fully. How do we create space in our daily lives to understand our behavior?  Impact valuation is helping us get there.

Social value creation is a tool, similar to technology, that enables us to utilize information, goods and services to help one another identify our comparative advantage. While the sector itself has been difficult to define in comparison to traditional sectors, my job is to help simplify things! When I speak to friends and colleagues outside of the economics field, the most important point I try to make is that creating social value is easier than you think.

First of all, every single one of us creates social value already.  Perhaps because we all create something that exists between us, it is taken for granted.  Secondly, quantifying activity in the fourth sector economy is a completely new field, emerging as we speak.  So, it is not surprising that the concept is confusing to people! However, business schools have been supporting social enterprise and social value creation for some time now.  My role in analyzing and creating market tools to quantify social value is done to empower people’s everyday actions.

The action of analyzing markets ideally leads to an outcome of increased efficiency. Therefore, as we learn more about quantifying social value creation, we will become better at understanding how our actions help one another and how social value creation can be harnessed.

For more information about this and other activity, and to inquire about IPAI membership benefits, visit our website at ipaiglobal.org

There were two areas of consensus in the goals/concerns of economists, finance ministers and corporate practitioners that came to Washington the last week of September for a whirlwind of public and private meetings meant to set the stage for growth and development out of what some are concerned is a global financial recession: Inclusive Growth and Private Sector Innovation

United States’ fall from global financial dominance that began with the crash of the sub-prime derivatives contagion in 2007, has in many ways empowered the rest of the world to take stock of their own contributions to the global economy, without looking to the United States as an omnipotent model for innovation and economic boom.

We, as practitioners, have entered a new stage of development.  This stage is as comforting as it is unnerving.  While the “third world” is now set to exceed the “first world” in growth rates, the rate of acceleration of the death of aid will continue to push the aid community to reconsider how they do business.

Will Washington look the same in 20 years?

Already underway, there will be a transition to a more inclusive global development community reflective of the tides of change now occurring as emerging economies increasingly gain market share into the global economy.  Whereas Washington will remain the global headquarters for issues of economic development, growth and change, the role of private enterprise will have an increasing role in how we frame issues of development.  As we develop and refine the definition of sustainability and the role of social enterprise, the division between for profit and non profit will become less clear.  I am thrilled and honored to participate in this transition.

Similarly, as much as the private sector model has provided a way out of the dark days of state run economies, there exists a quickly growing class of businesses that understand the need to refine the private sector model to incorporate the value of externalities that are not incorporated in traditional business structures.  While insurance products have continued to develop, ie. derivatives and risk mitigation tools, in an effort to address market failures, it is yet to be seen whether these products that have unleashed tremendous economic potential can play a role in economic sustainability and social value creation.

We have an unmet need to unleash the economic potential of the social economy.  This is where private sector innovation meets inclusive growth.  As we begin to define the uncaptured value of social enterprise, the financial markets will respond in turn.

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About Stephanie Sheridan

After witnessing the magnitude to which development needs remained unmet in Central America during high school, I started a long journey into the private sector to figure out how the business model could help solve issues of inequality in the global economy.

Consistently refining my understanding of how we take care of each other as global citizens, and after years of studying economic theory, I have come out strongly in favor of the role that social enterprise will play in the next century.  Globally, there is a lot of interest in the field of social enterprise, social innovation, social impact, however you like to call it and depending on who you speak with.

I hope you will join me in supporting practitioners, researchers, institutions and consumers active in developing the twenty first century economy.  – October 4, 2011

Consumers receive double bottom line valuation for their purchases of sustainable goods and services. Private enterprises showcase their sustainable activities. FInancial sector entities provide metrics valuation.

IPAI empowers every member to capture the the external value of their sustainable activities in order to bring the global economy into the twenty first century.  – July 7, 2011

Stephanie Sheridan, IPAI Global Founder and Ambassador Faida Mitifu, Ambassador of the Democratic Republic of Congo to the United States.  Photo taken at The Brookings Institution in Washington, DC.