1. http://pricetags.files.wordpress.com/2008/04/800px-london_millenium_wobbly_bridge1.jpg The Purpose of Capital Ross Net Impact Conference: Purpose Driven Profits October 13-14, 2011

4. Understanding system transformation Capital Institute is about paradigm shifting. consciousness system problems CHANGE As derived from Dr. Monica Sharma’s work at the UN

5. 4. Finance: Critical acupuncture point 3. How we got here 1. Competing world views 2. Our UNSUSTAINABLE economic system Agenda: “Think Different” 5. Regenerative Investment: Grasslands, LLC

6. 1. Competing world views After 500 years of progress based on the Cartesian logic of the Enlightenment… this is our Copernican moment

7. Reductionist Western View Holistic Systems View - Economy exists apart from nature and - Web of life: one system with multiple society as monetary phenomenon subsystems (holons); hierarchy of wholes is critical - Progress: Perpetual material improvement - Phase transitions, emergence - “Invisible hand” analogous to natural law - Adheres to laws of thermodynamics that delivers most efficient outcome which implies absolute limits among relative scarcities - “Externalities” are fixable market failures - No such thing as “externalities” requiring government intervention Society needs to define a “SOS” - Supremacy of the individual - Interdependence – all is connected - Machine as model – mechanistic/linear - Nature as model – complexity/emergence

8. 2. Our UNSUSTAINABLE economic system

9. OVERSHOOT The global economy now uses up 1.5 times the earth’s capacity to regenerate the natural capital upon which the system and life depends. - The Global Footprint Network

10. “Safe Operating Space” -- The world is full “Safe Operating Space” - National Center for Ecological Analysis and Synthesis

11. UNCERTAINTY SPIKE Symptoms of an unsustainable system overwhelm our senses with crisis upon crisis

12. 2b. rising inequality is UNSUSTAINABLE

13. Symptom: Increasing Wealth Inequality http://www.inhabitat.com/2010/10/14/worlds-largest-and-most-expensive-family-home-completed/ Wealth Disparity: 2% of population Controls > ½ the World’s Wealth 50% of population controls < 1% of World’s Wealth Income gaps between rich and poor > 2X in last 50 years Spain v Denmark Norway Finland Sweden Netherlands Switzerland Belgium Germany Austria France Canada Italy Australia Ireland Greece New Zealand UK Portugal Japan USA Better Low Wealth Gap Wellbeing Worse High Wilkinson & Pickett, The Spirit Level (2009) Wealth Gap vs. Wellbeing

14. Capitalism and democracy demand trust

15. Inequality lead to the Financial Crisis Paul Krugman: “Inequality and Crisis: Coincidence or Causation?”

16. 3. How we got here Our economy has become an anti-economy, a financial system without a sound economic basis and without economic virtues. - Wendell Berry

17. Economic Efficiency Economy Finance What’s wrong with this picture? Desired Outcome Planet

18. The most important chart in the world…

19. Sustainability Optimum Efficiency 100% 0% Resilience Source: Lietaer, Ulanowicz, Goerner 2008 Sustainability in Natural Systems Collapse of Financial System

20. 4. Finance: Critical acupuncture point

21. What are the “First Principles” of sustainable economics? What are the “First Principles” of sustainable economics? Bruntland Report, 1987: “Sustainable Development” Dematerialization through efficiency - Jevon’s Paradox Weak vs Strong sustainability

22. “First Principles” of sustainable finance: What’s your impact? Relative scarcity vs absolute scarcity Real vs virtual wealth: the exponential function Finance practice: what is “value”? Unsustainable SRI/ESG Green Sustainable Restorative Regenerative

23. Resiliency: Driving financial capital upstream http://3.bp.blogspot.com/_o0s746IzxZQ/TJwMEtnPvsI/AAAAAAAAAWo/lX-2e- wPZzo/s1600/upstream.jpg

24. Regenerative Investing: Grasslands, LLC A Holistic Management Enterprise in Partnership with Savory Institute Regenerative Investing: Grasslands, LLC A Holistic Management Enterprise in Partnership with Savory Institute Alan Savory won the Buckminser Fuller Award in 2010 Ranch management contracts, owned and third party 55,000 acres under management in S. Dakota and Montana Expansion in Great Plains, New Zealand, Patagonia

25. 12.5 billion acres — (~40% of total landmass) ~1 Billion people, many poor, make their living as pastoralists The World’s Grasslands are Vast

26. Peak Soil? Soil is second largest carbon sink after the oceans According to James Hansen, the atmosphere contains 800Gt of carbon, plants 600Gt, and soils contain 1500Gt We’re losing about 24 B tons of soil per year

27. Nature Provides the Solution

28. Impact Investment: What we feed, GROWS

29. Wyoming – both photos taken same day Left-side upstream, managed holistically (260% inc in livestock over 10 years) Right-side is downstream land managed ‘conventionally’

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