Earthenterprise Tool Kit - International Institute for Sustainable ...

EarthEnterprise Tool Kit
As the emerging owner of corporate America, with a financial and future
stake in corporate activity, pension funds have an obligation to speak up. Poor
management decisions, sloppy stewardship of natural resources, inattention
to the consequences of wasteful and hazardous production practices, can
shrink the present return on our investments, and — a more sobering
prospect — diminish our world.
New York City public workers’ pension funds are already invested in a few
environmentally sensitive companies, including 47 small enterprises that have
demonstrated their ability to operate sustainably.
Sustainable enterprises offer new opportunities through which investors and
entrepreneurs can find common ground, at least after undergoing a transition
process. For investors, the transition will involve developing a long-term
investment orientation and strategy and an appreciation of opportunities in
sustainable companies and markets. E n t re p reneurs will have to dev e l o p
commercially attractive, sustainable enterprise opportunities and offerings and
know how to gain access to investors disposed to this type of market.
The Unique Features of Sustainable Investment
Sustainable investment is a new concept, basically an innovative way of
reconciling environmental preservation and social responsibility with economic
activity and then adding value to all. It is not radical, but conserving; not
unrealistic, but profoundly practical. Sustainable investment is a sophisticated
way of shifting capital to companies (particularly SMEs) that are smart enough
to position themselves to create and take advantage of opportunities arising
from the new economic paradigm.
Sustainable investment is the same as traditional investment in that:
• It is placed in companies that do the fundamentals well. G ro w t h
projections are based on sound management and business principles.
Business plans and investment offerings have all the t’s crossed and all the
i’s dotted.
Sustainable investment is placed in SMEs that:
• Have identified and developed emerging markets for their products and
services;
• D evise and market technologies (hard and soft) that meet pre s s i n g
environmental, social and economic needs;
• Use every environmental efficiency that is economically viable.
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INTERNATIONAL INSTITUTE FOR SUSTAINABLE DEVELOPMENT