Why will we buy ‘light’ rather than lamps in the future?

Perhaps a better question is: “Who will own the light on your bedside table?”

In this lecture at the Dutch University, Elisa Achterberg answers the question “Why will we buy ‘light’ rather than lamps in the future” and talks about her career from econometrician in financial risk management, through permaculture designer, to researcher into the role of the financial system in a circular economy. The revenue model of the linear economy: selling products that are ‘almost broken’ is a thing of the past. In a circular economy, revenue models for the future are developed, in which economic incentives shift to sustainability and cooperation. However, the pressing question that Elisa is currently addressing is how do we ensure that the circular economy is truly a system change and not a business-as-usual situation? Now that the financial world has woken up and is eager to join, it is time to be extra alert. Who is going to make those new circular products and who will take the lead? And who makes sure that the money flows in the right direction? View the lecture here.

20 February
2018

Elisa Achterberg

Sustainable finance, all by itself

When we started to work on the ecological part of sustainable finance some five years ago, with our report on the impact of the carbon bubble on the European financial system, this at times could feel quite lonely. It was up to us to push the message with people on the other side of the table, mostly looking highly skeptical, if now outright bored.

Now, returning after a four month sabbatical, I find reports by an FSB taskforce on financial climate disclosure and by the EU expertgroup on sustainable finance. My six wonderful colleagues at the Sustainable Finance Lab are working with leading Dutch financial institutions on finding ways to finance fair and circular smartphones, started two Horizon 2020 programmes on the financing of eco-innovations (INNOPATHS and NATURVATION) and our co-chair gave a presentation on the circular economy in parliament. By invitation of the Dutch central bank financial institutions are making progress in diverse fields as carbon accounting and climate risk assessment, sustainable finance education and impact measurement. The Sustainable Pension Investment Lab has gone live. The movement for now also greening monetary policy is gaining momentum. Just to name some highlights.

So can I go back travelling? Maybe I can, but then again, the issues at stake are just too interesting, and the urgency for change so big, not to want to be involved. How can our quickly increasing insight into the financial risk of climate change, but also biodiversity loss and other ecological issues, be used by financial risk managers and supervisors? And what about the social dimension of sustainability?  What should the sustainable model mandates that the EU expertgroup discussed in its interim report look like? And in what way is the whole phenomenon of purpose driven business relevant to finance?  Questions we will answer in the year ahead.

8 September
2017

Rens van Tilburg

Sustainable finance, all by itself

When we started to work on the ecological part of sustainable finance some five years ago, with our report on the impact of the carbon bubble on the European financial system, this at times could feel quite lonely. It was up to us to push the message with people on the other side of the table, mostly looking highly skeptical, if now outright bored.

Now, returning after a four month sabbatical, I find reports by an FSB taskforce on financial climate disclosure and by the EU expertgroup on sustainable finance. My six wonderful colleagues at the Sustainable Finance Lab are working with leading Dutch financial institutions on finding ways to finance fair and circular smartphones, started two Horizon 2020 programmes on the financing of eco-innovations (INNOPATHS and NATURVATION) and our co-chair gave a presentation on the circular economy in parliament. By invitation of the Dutch central bank financial institutions are making progress in diverse fields as carbon accounting and climate risk assessment, sustainable finance education and impact measurement. The Sustainable Pension Investment Lab has gone live. The movement for now also greening monetary policy is gaining momentum. Just to name some highlights.

So can I go back travelling? Maybe I can, but then again, the issues at stake are just too interesting, and the urgency for change so big, not to want to be involved. How can our quickly increasing insight into the financial risk of climate change, but also biodiversity loss and other ecological issues, be used by financial risk managers and supervisors? And what about the social dimension of sustainability?  What should the sustainable model mandates that the EU expertgroup discussed in its interim report look like? And in what way is the whole phenomenon of purpose driven business relevant to finance?  Questions we will answer in the year ahead.

 

8 September
2017

Rens van Tilburg

ECB should look out the window more often

On June 14th ECB Vice President Vitorio Constancio gave a speech at Utrecht University School of Economics on the ECB’s negative interest rate experiment. It was a most interesting lecture in which he argued the equilibrium real interest rate (the rate at which demand and supply for capital equalize) in Europe and much of the West may in fact be negative. Secular stagnation due to low productivity growth, labor replacing technological change and sluggish demand may have pushed demand below capacity and the real interest rate at which Western economies achieve full employment at stable inflation rates could then be negative. A most interesting proposition.

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20 June
2016

Mark Sanders

Investors can learn a thing or two from the natural world

While humans have been learning from nature for thousands of years, a formal concept “biomimicry” – which seeks inspiration from nature to solve complex human problems – is more recent. Nature constitutes the source of inspiration for many new products and processes among diverse fields, for example, Tokyo’s rail system inspired by slime molds, Shinkansen bullet train inspired by the kingfisher’s beak and wind turbine blades designed based on humpback whales. These nature-based innovations will play an important role in the transformation towards our vision of a sustainable future.

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19 May
2016

Why this Capital Markets Union is a bad idea

In a few months European Parliament will take a vote on the European Commission’s proposal known as the European Capital Markets Union. This proposal aims to create a single European market for capital and eliminate all remaining barriers to cross border investments in the EU. As with the single markets for goods, services, energy and labor, this is, in principle, a good idea. A single market allows for a more efficient use of our limited resources and benefits investors as well as those looking for funding. Moreover, Eurogroup chairman Dijsselbloem has said (e.g. http://www.consilium.europa.eu/nl/press/press-releases/2015/11/04-jd-speech-tatra-summit/) such a Single European Capital Market can help stabilize the Eurozone. It allows surplus countries to invest their excess savings in deficit countries, thus diversifying risk and synchronizing the European business cycle. The Capital Market Union thus aims to mobilize more investment and allocate it better across the EU to help stabilize the Monetary Union.

 

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19 May
2016

Mark Sanders