Ethical Investment An example Climate Café Series Belmont Cinema 05 February 2019
Contents Who am I Ethical investment Aberdeen Community Energy How to
Who am I Sinclair Laing Environmentalist Community development ACE – Chair DVC – Trustee ACC – Environmental Policy
Who I am not! I am not a financial advisor! The value of an investment may go down as well as up Only invest what you can afford to lose
What is investment A physical or other (financial) asset acquired with the goal of generating wealth Assumes immediate economic output (business) or deferred growth in value (other asset) Money in = money out + profit
Ethical investment Not wealth for wealth’s sake Generates non-financial benefits Aligns to a set of values Lots of frameworks / approaches
Why do it Investor: Support what’s important (to you) Less anonymous - ‘closer’ relationship Wealth generation Investee: Funds to deliver ‘good’ business Can be easier to access (depends) Relationships with stakeholders
Why did I do it Donside Hydro Papermill to Sustainable Village 100kW run-of-river micro hydro 520,000kWh.yr = 130 homes £1,250,00 end to end Commissioned 21st Sept 2016 Multiple benefits: Environment, e.g. reduce CO2 Financial, e.g. community fund Social, e.g. skills & education Much more besides…
How I did it Like any business… Is there merit in this Do I have the will Does it stack up financially How do I go about it Support: 3rd sector support agencies Legal - structures Financial - models Marketing Skilled / dedicated team
Who are ACE Legal entity born of DVC to build, own & operate DH Separates financial / legal risk Defines operational roles Community Benefit Society Registered & Regulated by FCA Board of Directors (voluntary) Members = investors Rules
Marketing Selling an story / values £20K for Marketing Branding Key messages Website Facebook Twitter Press Materials, Offer Docs
Finances £1,250,000 Project cost Development - CARES - £250,000 Capital No larger commercial loans Underwriting & Invest HED Share Offer - £500,000 @ 7% Bond Offer - £600,000 @ 4% Income FITS – 20p.kWh - £100,000 Sales – 5p.kWh - £30,000 Expenditure Operations - £15,000 Shares – Cap & interest Bonds – Cap & interest Community fund - TBC
Aberdeen Community Energy Contact us Aberdeen Community Energy Web: acenergy.org.uk Email: info@acenergy.org.uk Facebook: ACEnergy2016 Twitter: @ACEnergy2016 LinkedIn: Aberdeen Community Energy Aberdeen Community Energy is the trading name for Donside Community Hydro Limited, a Community Benefit Society registered with the Financial Conduct Authority: #7251
Legal / Partnership Structure