DEVELOPMENT
MEETING
THE SCALE OF
OUR GLOBAL
CHALLENGES
MARGA HOEK
Board member,
Dutch Sustainable
Business
Chairman, Green Minds -
Sustainable Scientist
Network
Author, Managementbook
of the year 2014 New
Economy Business
The year 2016 marks the beginning
of acceleration. As we prepare for
Cop 22 in Marrakech in November, we
increasingly recognize the significant
events in 2015 that have marked the
threshold of a new era. The United
Nations presented 17 Sustainable
Development Goals (SDGs) and the
COP21 Paris agreement, agreed by 195
nations, to combat climate change set
a new direction and scale for global
goals. They have turned a page in
history. Both were, to a large extent,
a message from and for the business
world: to create a positive impact
on all the assets of the world, and
contribute to developing an economy
that is here for the world and leave
behind the exploitation of a world
serving the economy.
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This is especially pertinent considering
that over 50 of the world’s top 100
economies are in fact corporations,
and the costs resulting from the damage
to our planet are tremendous. In the
last decade alone, the world economy
suffered a loss of 2.7 trillion dollars
because of natural disasters. Business
has contributed to the mass destruction,
but it also holds the key to the solution.
Capital impact: from moving billions
to shifting trillions
The redirection of capital is crucial to
accelerate the transition to this new,
val ue driven economy. What we invest in,
will grow. What we divest from, will phase
out – and it should. In a recent WEF
survey, 750 economists said that they
see a climate-induced catastrophe as the
greatest threat to the world economy in
2016. With this urgency in mind, Achim
Steiner, director of the United Nations
Environmental Program has proclaimed
2016 the ‘Year of Green Finance’,
knowing that it is crucial to focus on
capital investments. And thankfully,
we are already seeing an increase in
the growth of sustainable capital and
a strong divestment from fossil fuels
as well as an increase in the growth
of sustainable capital and sustainably
responsible investing, as there are
increasing indications that previously
considered risky investments in sectors
such as cleantech, are now leading to
above average returns. Over 42 billion
dollars in green bonds have been
issued and the amount of sustainable
investments has increased over the
past two years by 60%. Market value is
increasing rapidly with the low carbon
market worth more than 5.5 trillion
dollars today, showing growth of more
than 3% per year. Last year alone 270
billion dollars was invested in low-carbon
clean energy solutions, in addition to
at least 130 billion in energy efficiency.
Additionally, thirty stock exchanges
worldwide have joined the Sustainable
Stock Exchanges initiative, committing
themselves to promoting sustainable
investments. Divestment from polluting
fossil fuel companies is starting to
become more prevalent. Examples
include the largest pension fund
in Washington D.C. which recently
announced their divestment of 6.4 billion
dollars from 200 of the world’s most
polluting fossil fuel companies, and the
Norwegian pension fund GPFG, the
largest investment fund in the world,