WIR

As we look to transform our economic and financial systems to support a more just and regenerative economy, we at Capital Institute are aware of how much we have to learn from observing the resiliency of natural systems.

And the more we learn about the Chicago Manufacturing Renaissance Council project as we undertake the research for our upcoming Field Guide to Investing in a Regenerative Economy study, the more we observe parallels between it and what ecologists call an “ecotone.” An ecotone is a transitional zone between contrasting habitats, a forest and a grasslands, for example, where tremendous creative destruction, rich biodiversity, and continuous ecosystem rebalancing known as “the edge effect” occur.

But, as Bill Reed, one of the founders of the rengenerative development movement, explains: “Edges are about more than simply re-balancing—they are about increased potential of relationship and exchange. The possibility of life happens at edges; edges are the bridge and arbiter of relationships—the more edges we have, the richer the potential to improve the resilience of life.” We have come to see the CMRC as just such a vital “bridge,” in this case between the old industrial paradigm and an emerging one where advanced manufacturing will play a central role.

A report commissioned by the Global Alliance for Banking on Values and funded by the Rockefeller Foundation, published in March, shows that over the 2007-2010 period, 17 values-based banks outperformed 29 leading mainstream banks by a number of key measures, including loan and deposit growth, capital strength, and return on assets. The values-based banks, which include Triodos, VanCity, New Resource Bank, and OnePacificCoast Bank, were compared with traditional banks, including Bank of America, JP Morgan, Barclays, Citicorp, and Deutsche Bank.(To be a member of the GABV a bank musthave a balance sheet of at minimum $50 million, a strong retail presence, and demonstrate a deep and transparent commitment to environmental and social concerns in every aspect of its banking practices.)

Former Executive Director of Ceres Robert Massie has been appointed CEO and President of the New Economics Institute effective March 19. Massie led the launch of the Global Reporting Initiative (GRI) from the helm at Ceres. As President of NEI, Massie will oversee the upcoming Strategies for a New Economy conference where the Capital Institute will host a track on finance. We look forward to continuing our close relationship with NEI as they continue to drive the transition to a new economy with Massie leading the way.

Capital Institute spoke recently with Steve Waygood, Head of Sustainability Research at Aviva Investors, to learn more about the advocacy work the company— with $433 billion in assets under management—has undertaken to advance the cause of more transparent reporting and management of sustainability risk.  We also talked with Waygood about how Aviva Investors has embedded sustainability practices into its own operations, his broad concerns about the flawed methodologies that are currently used to value corporate assets and profitability, and the role both policymakers and the private sector need to play in addressing those flaws.