1. Ethical Investment An example
Climate Café Series
Belmont Cinema
05 February 2019

2. Contents
Who am I
Ethical investment
Aberdeen Community Energy
How to

3. Who am I Sinclair Laing Environmentalist Community development
ACE – Chair
DVC – Trustee
ACC – Environmental Policy

4. 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

5. 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

6. Ethical investment Not wealth for wealth’s sake
Generates non-financial benefits
Aligns to a set of values
Lots of frameworks / approaches

7. 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

8. 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…

9. 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

10. 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

11. Marketing Selling an story / values £20K for Marketing Branding
Key messages
Website
Facebook
Twitter
Press
Materials, Offer Docs

12. Finances £1,250,000 Project cost Development - CARES - £250,000
Capital
No larger commercial loans
Underwriting & Invest HED
Share Offer - 7%
Bond Offer - 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

13. Aberdeen Community Energy
Contact us
Aberdeen Community Energy
Web: acenergy.org.uk
Facebook: 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

14. Legal / Partnership Structure