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Mathis’ IAIA Award Acceptance Speech

04/22/2015 05:30 PM

Mathis Wackernagel, President of Global Footprint Network, was in Florence, Italy, this week to receive the IAIA Global Environment Award for developing the Ecological Footprint. “The Global Environment Award is presented annually to a leading individual or institution that has made a substantial contribution to the practice of environmental assessment, management or policy at a global scale,” according to the International Association for Impact Assessment. This global network believes, in its own words, that “the assessment of the environmental, social, economic, cultural, and health implications for proposals is a critical contribution to sound decision-making processes, and to equitable and sustainable development.” IAIA is recognizing the Ecological Footprint for efficiently “translating the complexity of humanity’s impact on the environment into a compelling, understandable and actionable form.”

Previous recipients of the award include:

2014 John Ruggie, USA
2013 International Finance Corporation, USA
2012 Int’l Network for Enviro Compliance & Enforcement, USA
2011 Not awarded
2010 Nicholas Stern, UK
2009 The Carter Center’s River Blindness Program, USA
2008 Elizabeth Dowdeswell, Canada
2007 Lawrence E. Susskind, USA
2006 Wangari Maathai, Kenya
2005 James Gustave Speth, USA
2004 Margot Wallstrom, Sweden
2003 Mostafa Kamal Tolba, Egypt
2002 Jan Pronk, The Netherlands
2001 Maurice Strong, Canada

The text from Wackernagel’s acceptance speech is below:

Dear friends and esteemed colleagues,

Thank you for your kindness and generosity. It deeply touches me that you have selected our work for IAIA’s Global Environment Award.

Your organization has been in my conversations since the early 1990s. Members of IAIA have been my mentors. And some members have been intellectual lighthouses – like the late Robert Goodland.

The sheer optimism your organization exudes through its name, has tickled me, IAIA here we come! It is a battle cry for a better world. And indeed we badly need far more rigorous impact measures, because the financial rationales are not sufficient in guiding our decision-making. Calling everything that matters externalities does not cut it.

At Global Footprint Network, our mission is nearly the same as yours: To make ecological limits central to decision making. We need this for an equitable and sustainable world. Without embracing resource limits, it is unlikely that we will be able to move out of overshoot by design.

We will eventually move out of ecological overshoot, no doubt. Physics dictates this. The question is merely: Are we doing it by disaster or by design? I do not want the former to win this race.

Inspired by the discipline of impact assessment, Bill Rees and I developed the initial Footprint, an accounting system for measuring our ultimate environmental impact. We asked the question: How many planets does it take to support humanity? Answering this question could then also tell us: how many planets does it take if everybody lived like me or you?

The underlying principles are very simple: Life competes for biologically productive surfaces. You eat a potato, and this takes space. Add space for your tomatoes, the cotton, the milk, the rice, the wood fibers, the timber, the sequestration of your carbon emissions. The sum we call “your Ecological Footprint.” And a big part of humanity’s Footprint, currently, is the carbon Footprint. In fact there would currently still be sufficient space to absorb all our carbon emissions from fossil fuel, but then there would be far less space for food. We seem to choose food over carbon sequestration.

Once we add up all the surfaces we demand, then we can compare this Footprint with the biologically productive surfaces that exist on the planet – we call this the biocapacity.

I brought some wallet cards along with lots of Footprint data points. They are shaped like credit cards. Like credit cards, they are worth money. Because they help intrigue your friends, and then they will invite you to a free lunch. The cards contain a nauseating amount of data. And what is even cooler – once opened, you cannot fold them back.

Why would you need to know how much nature you have compared to how much you use? I asked this very question to a class of 11-year-olds. A girl immediately raised her hand and said, “If we use more than what we have, the only thing left to eat is imaginary cookies…

Now. She was not totally right, because we can overuse nature for some time, depleting the stock. For example, cut trees more rapidly than they regrow, deplete soils, overuse groundwater, accumulate CO2 in the atmosphere. But still, she got the idea far more clearly than most of the ministers I talk to.

How can we make this as clear as crystal for everybody?

Read Complete Article >


Could Earth Day 2015 be the tipping point?

Laetitia Mailhes, Global Footprint Network - 04/21/2015 11:42 PM

Earth Day’s 45th anniversary is being celebrated today around the world. On this day—less than one-third into the calendar year—humanity already has used about half of all renewable natural resources and services that the planet can generate this year, according to Global Footprint Network’s data. Despite this sobering fact, let’s not lose sight of the many signs that a perfect storm is brewing for 2015 to be the most exciting year to date for sustainability.

All eyes are on the Paris Climate Summit, a much-anticipated event which is already boasting the tag line "For a universal climate agreement." Some 23 years after the first Rio Summit and 18 years after the historic Kyoto Protocol was signed, the nations of the world are closer than ever before to making a binding commitment to act on climate change. If the negotiations are successful, that commitment would entail a clear, shared goal (maintaining global warming within the 2-degrees-Celsius range,) detailed action plans and a timeline.

The optimists among us will point out that the odds are looking good. Last October the world’s two biggest carbon emitters, China and the United States, made history with a surprise joint announcement of their commitment to reach an ambitious 2015 agreement in Paris lowering emissions, and to strengthen their bilateral cooperation in order to reach their goals. Last month the Obama Administration made good on the announcement when it formally pledged in its five-page submission to the United Nations that the U.S. will cut its greenhouse gas emissions by as much as 28 percent over the next decade.

Meanwhile, China’s coal imports in the first quarter of this year have dropped by nearly half compared to the same period last year—a significant feat for the world’s biggest consumer of coal. China’s economic slowdown is partially responsible for the trend. It is also no accident that China added 11GW of solar capacity last year (enough to power 6 million homes) and led the world in terms of investments into renewable energy—up 32 percent from 2013, according to the market research firm Business Monitor International. BMI expects China to keep up the pace this year in terms of both added renewable capacity and investment growth.

Greening of energy sector accelerates

Governments never act as quickly as activists, consumers and scientists want them to. This being said, they have been investing huge efforts and resources, reaching significant momentum leading up to the Climate Summit in Paris.

Various countries around the world have worked tirelessly towards lowering the carbon Footprint of their economy–the largest component of many countries’ Ecological Footprints. In Europe, Germany, a pioneer in solar energy, now produces more than 27 percent of its electricity from renewables. Spain has been investing heavily in wind farms and, more controversially, nuclear, with stark results: last month it generated 69 percent of its electricity from plants that did not emit carbon dioxide, and it has realistic prospects to reach 87 percent next year.

In Latin America, Costa Rica has reached a carbon-free power grid. After decades of expanding its reliance on hydropower, the small tropical nation has been able so far this year to generate 100 percent of its electricity from hydro, geothermal and wind.

It is widely expected that the dramatic drop in the cost of solar energy will support and even boost the current momentum towards cleaner energy.

The transportation sector, a major contributor to greenhouse gas emissions, has also been yielding good news of late. Just last week we learned that electric cars and combustion engine vehicles reached cost parity 6 years earlier than expected. A good reason to expect that the recent surge of the EV market (up 72 percent last year in the 10 largest markets) will be sustained.

Everywhere you look, investors and initiatives of all stripes are coming up with low-carbon or carbon-free alternatives to current carbon-intensive infrastructures, equipment or processes that our economies are so dependent upon: carbon-negative cement, zero-carbon buildings, aviation biofuel, methane sequestration and biogas generation, you name it. The finance industry is even getting on to the game, as the international fossil fuel divestment movement grows.

Citizens take the judiciary to task

Last but not least, citizens themselves haven’t been sitting idle. The courtroom is an especially interesting space to watch. Various lawsuits that were filed in the United States and abroad a couple of years ago to hold governments accountable for insufficient action on climate change are ready for primetime. Earlier this month oral arguments were heard by a judge in Oregon. The plaintiffs are teenagers supported by the nonprofit Our Children’s Trust. Its goal is to have the courts acknowledge that the atmosphere is part of the commons and, as such, should be protected by governments as mandated by the principle of common law known as Public Trust Doctrine. The judge is expected to render a decision later this year.

Also this month public arguments began in the Netherlands, where nearly 900 Dutch citizens have filed a class action lawsuit against their government for failing to effectively cut greenhouse gas emissions and curb climate change. The prosecution is basing the case on existing human rights laws. And more than 10,000 Belgian citizens—and counting—have pledged to support a similar lawsuit in their country.

Plaintiffs in all above-mentioned cases were given a clear victory last month when an international working group of current and former judges, advocates, and professors adopted the Oslo Principles on Global Climate Change Obligations. The legal experts aim to publicly send governments and enterprises back to their legal responsibilities and obligations on climate change as defined by well-established laws—human rights law, international law, environmental law, and tort law. And they argue, to quote The Guardian, that any new international agreement will just be a coda to obligations already present, pressing and unavoidable in existing law.

Obviously, a tremendous amount of work remains to be done. Carbon is only one part of the story. The plight of forests and oceans, ecosystems degradation, access to water, growing social inequities—to name but a few—are giving no rest to countless activists, government officials, research organizations, consumers and businesses around the world. Let’s acknowledge all the good news, however, and celebrate them, so we can confidently hold onto the vision of all people living well, within the means of nature.


2014: Year in Review

01/07/2015 11:25 AM

As we are greeting the New Year, we want to take a moment to pause, thank our generous supporters and celebrate what we accomplished over the past 12 months. Here are the highlights.

A major milestone for us was the launch, last June in London, of Phase II of ERISC with our partners in the finance industry. Environmental Risk Integration in Sovereign Credit, a research project that seeks to quantify how environmental risk can impact the balance sheet of nations, is a joint program with the United Nations Environment Programme Finance Initiative. We are grateful to participating institutions Caisse des Dépôts, the European Investment Bank, First State Investments, HSBC, Kempen Capital Management, KfW and Standard & Poor’s, who embarked on that journey with us. We are looking forward to announcing first research results and findings in 2015.

Read Complete Article >


Footprint Conversations Around the World

12/17/2014 02:42 PM

Our staff has been busy this past month spreading the word about the Ecological Footprint at conferences and engagements around the world. Click locations below to learn more about our work.

 


Statement on U.S.-China Climate Agreement

Global Footprint Network - 11/15/2014 01:35 PM

Statement by Mathis Wackernagel, President, Global Footprint Network

The landmark U.S.-China climate change agreement announced this week is a game changer for our energy future because it represents strong recognition of the need to wind down fossil fuel use to zero within a few decades. What had been a physical necessity but a political taboo is now being acknowledged by the two countries with the largest CO2 emissions.

Other countries have been waiting on the sidelines for the United States and China to act on climate change. So President Barack Obama and President Xi Jinping’s commitment to reduce greenhouse gas emissions and boost renewable energy adoption by 2025 and 2030 respectively—just 10 and 15 years away—sends a promising signal to the world community on the path to the Paris climate summit at the end of next year.

The new goals would keep the United States on the trajectory to achieve deep economy-wide carbon emission reductions on the order of 80 percent by 2050, according to the White House. China, meanwhile, has targeted total energy consumption coming from zero-emission sources to around 20 percent by 2030. Both actions will happen well within the lifetimes of many people today.

These targets represent a significant shift in political momentum and  suggest that moving out of fossil fuels may finally have won mainstream acceptance. 

Read Complete Article >


Seeking Sustainable Solutions: CEO Susan Burns Reflects on Her Professional Journey

11/13/2014 07:00 AM

Susan Burns, co-founder and CEO of Global Footprint Network, will be honored today at the International Society of Sustainability Professionals (ISSP) Conference in Denver, Colo., as both she and co-founder Mathis Wackernagel are inducted into the ISSP Sustainability Hall of Fame. She has taken this opportunity to share insights from her journey.

How did you "fall" into a career as a sustainability professional?

As a child I loved nature, and I somehow knew there was a problem with pollution and the extinction of species, even though during my suburban upbringing it wasn’t exactly kitchen table conversation.

After earning a degree in environmental engineering, I started working in the consulting industry. I like to joke with my younger colleagues that I was working in this field before “sustainability” was even a word! I started the pollution prevention practice at ERM West. Then I met Ernest Lowe and Gil Friend, some of the early thinkers around the idea of industrial ecology and how the waste of one industrial process can be used as the input for another industrial process. The idea is to mimic nature where production and “waste” are all incorporated into one closed loop, and everything is utilized. I ended up starting a small consulting firm, Natural Strategies, with Adam Davis and the late Charles McGlashan, two brilliant men. Our vision was to help global corporations adopt sustainability as a source of competitive advantage even though the business world was very skeptical at the time.

Read Complete Article >


What do Switzerland and China Have in Common?

Susan Burns, CEO, Global Footprint Network - 08/11/2014 05:10 PM

Did you know the Chinese province of Guizhou in southwest China bears some striking resemblance to Switzerland? I confess I didn't, until I was invited to Guizhou last month to speak at Eco-Forum Global. Since 2009, this annual conference gathers participants from around the world to share knowledge about policies regarding green economic transformation and ecological security. This year I spoke on a finance panel led by the chief economist of Bank of China, Ma Jun, and a panel organized by the Sino-Swiss Dialogue.

Just like Switzerland, Guizhou is landlocked and boasts a mountainous landscape. It is one of two provinces in China that President Xi Jinping declared to be testing grounds for China’s new focus on "eco-civilization" and the "China dream."

Read Complete Article >


Climate Change and Default Risk: S&P’s Latest Report Connects the Dots

Susan Burns, CEO, Global Footprint Network - 05/19/2014 07:08 PM

Credit to CGP Grey, CC BY 2.0

“Climate Change Is A Global Mega-Trend For Sovereign Risk.” That's not me talking. It’s the title of the latest report published by credit rating agency Standard & Poor's. While climate risk is not yet officially included in the agency’s credit rating model, it's the first time that a major rating agency has specifically recognized an environmental issue in its forecast of countries' economic health and their ability to honor their sovereign debt.

This report is a huge development as far as the financial sector is concerned. It is a clear signal that the message about the critical need for countries to incorporate environmental risk into their development strategies, economic plans and public policies is finally beginning to hit home. As such, it is great news.

S&P’s climate risk report is just the starting point of a much bigger conversation. The sovereign bond market has been a long overlooked portion of the financial system, even though it represents 41 trillion USD of total capital flows. Because a government's cost of borrowing is strongly related to its credit rating by agencies such as S&P, governments are powerfully motivated to manage issues that could harm their credit rating. Recent analysis has shown that environmental risks do impact national economic health, and by extension default risk, but are not currently incorporated into most country risk models. Incorporating environmental risks across the finance industry would undoubtedly cause nations to pay attention to ecological risk like never before, especially due to the potential for some governments to be downgraded (and others upgraded), thereby affecting their borrowing costs.

The S&P report looks at the economic impacts of climate change, such as changing rainfall patterns that could affect agricultural yields. But climate change isn’t the whole story. Our research has shown that resource constraints (limited supply of fossil fuels, metals and minerals, food and fiber) coupled with rising global demand also have a profound effect on the balance sheets of nations.

Taken together, the conclusion is clear: For countries to protect themselves from the erosion of economic performance due to climate change and growing resource scarcity they will need to redesign their economies in order to be ‘fit for the future.’ They will need to minimize their liabilities and optimize their opportunities. They will need to be resilient in the face of climate change but will also be compelled to view their natural resources as a source of wealth for their nations, rather than assets to liquidate on their way to economic growth.

Approximately 80 percent of the world’s population lives in countries that are in ecological deficit. In other words, their populations demand more resources and ecological services than can be supplied on a net basis by their own ecosystems. Deficit risks play out in three ways. Here goes, briefly:

1. Trade-related risks: countries that compensate for ecological deficits through imports are exposed to trade related risks such as commodity-price volatility and possible supply disruption.

2. Degradation of natural capital: soil, fisheries and forests that are overused or mismanaged can suffer from reduced yield, affecting production and possibly increasing countries’ reliance on imports.

3. Stranded assets risks: Many nations have invested in carbon-intensive infrastructure and industrial processes. Countries are unequally exposed in terms of the scale and impact of needed reforms as governments around the world respond to climate change.

Now, the good news is that governments do have options. The management of resources and fossil fuel dependence, to name but two aspects, belong in the realm of political choice.

We believe we're providing a very important lens for credit risk perspective. And so we're about to launch the second round of E-RISC (Environmental Risk Integration in Sovereign Risk Credit) research with seven partners from the financial industry: S&P, HSBC, European Investment Bank, Caisse des Dépôts in France, Colonial First State in Australia, KFW in Germany and Kempen in the Netherlands. Some 18 months after we launched the initiative, our focus is now on testing and refining the methodology to make it robust and useable in investment decisions.

Why is this important? Because getting the finance industry to incorporate environmental risks is one of the best ways to help governments pay attention. Ultimately, our goal is to see the implementation of policies at the national and regional level that address those risks.

The challenge is on.


The Financial Risks of Ecological Limits (November 2012)

Global Footprint Network - 11/16/2012 12:40 AM

Some of the economic implications of resource constraints were introduced to the world of international finance this week in London, when Global Footprint Network and the UN Environment Programme Finance Initiative (UNEP FI), in collaboration with leading financial institutions, launched the E-RISC (Environmental Risk Integration in Sovereign Credit) report at Bloomberg, a leader in global financial data.

The interactive event drew over 150 participants, including representatives from leading financial institutions, investors, asset management firms and rating agencies, including Caisse des Depots, SNS Asset Management, Standard & Poor’s, J.P. Morgan, KfW Bankengruppe, Deutsche Bank, HSBC and Barclays.

To date, tightening resource constraints and their impacts on national economies have been largely absent from financial analyses. The E-RISC report fills this gap by exploring to what extent resource and ecological risks can impact a nation’s economy and how these factors affect a nation’s ability to pay its debts.

E-RISC Press Conference at Bloomberg, with Ivo Mulder (UNEP FI), Susan Burns (Global Footprint Network), and Nick Nuttall (UNEP)
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Global Footprint Network Supports the Natural Capital Declaration

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Global Footprint Network - 08/01/2012 11:11 PM

Global Footprint Network supports the Natural Capital Declaration, a commitment made by CEOs from the finance sector to integrate natural capital accounting into their financial products and services.

Global Footprint Network is committed to creating a world where everyone can live well within the means of one planet. It is going to take all of us pulling together toward this common goal. We recognize the need to push the frontiers beyond business-as-usual and to explore more integrated approaches to finance.  As financial institutions are an integral part of the economy and society, initiatives like the Natural Capital Declaration are important to help lead the way.

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