Essays on sustainable development | Ricky Martin
Essay on sustainable development / Nabokov essays
Finally, venture capital and fixed income funds have supported innovative small business development around environmentally sustainable goods and services.
Essays on sustainable development a global challenge U c essays
Impact Investors focus on investments that make financial sense, and have intended, specified, tangible social and/or environmental benefits. They are often associated with innovative investments meant to catalyze other private and public sector capital, or with taking risks and accepting reduced returns in exchange with outsized social impact--for instance by creating investment vehicles that serve low income areas or that support innovative energy efficiency investments. They may join organizations such as the Global Impact Investing Network, which focus on regions and sectors of interest to multiple investors.The archetypal Impact Investor is a foundation or high-net worth individual focused on creating social impact through market tools. For these investors, sustainable cities offer:As for Responsible Investors, the idea of a sustainable city – a metropolitan region whose design and culture favor sustainable energy use and living patterns – increases the benefits for Impact Investors of each of these factors, by capturing the benefits of individual investments and creating mutually beneficial and reinforcing deployments of capital.Responsible Investment and Impact Investment have both received substantial attention and growth in recent years, catalyzing products for all sorts of investors that have carbon mitigation, urban resiliency, or sustainable land management built into their business rationale.For instance, the World Bank, the IFC, the European Investment Bank, and others have developed a class of "green bonds" meant to appeal to institutional and retail investors who look for relatively straightforward investment products that serve these sustainability goals. These bonds help finance, among other things, urban infrastructure projects tied to carbon mitigation efforts. The Climate Bonds group is working on standards to ensure that green bonds fulfill their environmental promise, and in the process provide readily accessible products for investors and bond issuers alike. Other examples include real estate funds that target transit-oriented development or energy efficient buildings. Efforts have been made by large real estate fund managers to green their existing building portfolios. Green building guidelines such as the LEED program of the US Green Building Council, the BREEAM ratings in Britain, or Green Star in Australia have all helped set standards for energy efficient buildings. Specialized funds have developed to help green affordable and workforce housing units, or to revitalize brownfield sites in cities and reduce sprawl, or to build or refurbish mixed-use, mixed-income buildings in proximity to transit.Finally, venture capital and fixed income funds have supported innovative small business development around environmentally sustainable goods and services.These various products are designed to appeal to different sorts of investors. Responsible Investors are looking for products which fit into their portfolios, and can be benchmarked for financial return against peer groups with less social impact. These investors face the challenge of finding investable products that aggregate enough deals to absorb institutional scale capital. They often depend on third parties -- public or civil society -- to work with them on designing investable deals, either through community engagement or financial support of one sort or another. Successful products have typically come in the form of conventional investment products, with support from collateral organizations ensuring the delivery of public benefit. For Impact Investors, the need is for a robust infrastructure that can source deals in hard to work places, or provide capital to mitigate risk or enter new spaces for investment. Across the range of investments, urban areas and sustainability have been a focus.But the products themselves rarely are designed to support sustainable cities, understood holistically. Instead, they focus on projects, deal aggregation, and fund development that contribute to sustainable goals within an urban setting. How can we take this interest in sustainable investment products, and turn it into support for sustainable cities themselves?For private investment to fully participate in making cities sustainable, investment products, public policies, and civic support need to be created around efforts that combine an interest in sustainability, the importance of cities, and the multiple potential sources of capital. This will be most effective where the models of urban places and metropolitan regions are developed that link investment to broader sustainability goals. Otherwise, the benefits of sustainable projects -- one-off sustainable investments -- cannot capitalize on the long-term benefits and innovative potential of truly sustainable communities.To make a city investable, then, it requires the coordination of projects, funds, investors, policy makers, and civil society organizations, around a common goal against which specific types of investments can be measured. Investors differ in their needs and capacity, and so multiple forms of private capital will be necessary to support sustainable cities. Just as importantly, a framework that coordinates these sources of capital, helps build pipeline opportunities, and creates mechanisms to hold investors accountable for superior social and environmental performance, is fundamental to creating a sustainable investment platform. In other words, some set of stakeholders must create a vision for a sustainable city that both encourages and holds investment to account.Examples of sustainable city policies abound, but examples of sustainable city policies designed to catalyze private investment are harder to come by. Four examples can help illustrate what might be necessary to make sustainable cities investable. First, the JESSICA program, a program of the European Investment Bank, encourages the creation of metropolitan-based investment funds that catalyze private investment by creating investment policies that use public money to catalyze longer term time horizons, and coordinate multiple sources of investment from public and private sources. In theory, the JESSICA program will help make investment in sustainable urban areas more attractive, and the place-based nature of the fund offers the potential for coordinating investment against a broader vision for a sustainable city.In the United States, Living Cities, a consortium of the country's largest charitable foundations, has begun efforts to integrate public policy and private investment towards share goals for urban regeneration. In a difficult investment climate generally, and in places in need of investments like Detroit, Cleveland, or Baltimore, Living Cities is working to integrate urban regeneration strategies so that multiple stakeholders have a share goal against which the value of specific deals can be measured. Not every deal needs to deliver the same social and environmental benefits, but together the deals are meant to create capacity, in cities as a whole, to receive sustainable investment.">14