Bye-bye, oil
Cooperativa Editoriale Etica
Year 1 number 1 july 2016
INTERNATIONAL
€ 4,00
GREENPEACE
Magazine of social economy, ethical finance and critical shareholders
OECD LASHING OUT AT TAX EVADERS BUT NOT TOO HARD
critical shareholders
NEW EXPERIENCES FLOURISH IN EUROPE
GREEN ENERGY INVESTORS LOVE STEADINESS
new economy
9 788899 095222
ISBN 978-88-99095-22-2
Poste Italiane S.p.A. Spedizione in abbonamento postale D.L. 353/2003 (conv. in L. 27/02/2004 n. 46) art. 1, comma 1, NE/VR.
ethical finance
International disinvestment campaigns are speeding up the death of fossil fuels. Those who have kept investing in this area have suffered huge losses. And stranded assets increase
Bye-bye, oil
2
valori international / YEAR 1 NO. 1 / JULY 2016
editorial
A NEW MODEL FOR THE FUTURE by Anders Wijkman
L’AUTORE
ANDERS IVAR SVEN WIJKMAN, 71, is a Swedish
opinion leader, author and politician. As member of the European Parliament from 1999 to 2009, he focused on issues related to climate change, environment, development cooperation and humanitarian affairs. He is a member of the Christian Democrats, part of the European People’s Party European Democrats group. Anders has been a member of the Swedish parliament, secretary general of the Swedish Red Cross, and president of the International Red Cross Disaster Relief Commission. Anders Wijkman is vice President of Club of Rome and the Tällberg Foundation. He is a member of the Royal Swedish Academy of Sciences and he is also a councillor for the World Future Council.
I
have politics to thank for much in my life. The work as a member of a parliament is rich and diverse.Eight years in the Swedish parliament and then ten years in the European Parliament have given me unique insights into how political parties think and work. In spite of my positive experience, I am very concerned about the current state of politics, particularly the development of political parties. Society’s increased complexity ought to be addressed through a broader perspective, increased learning, new institutions, greater expression for the principle of global solidarity and justice and a more long-term attitude in decision-making. But we see little of this. Instead, political decisions continue to be dominated by tunnel vision and shortsightedness. Seen from my perspective, the current political system is poorly equipped to deal with many of the complex problems our societies face. An economic model that worked well during the post-war period does not automatically provide the right framework for today’s increasingly globalized world. I have witnessed how politics has become increasingly symbolic, while its content has been watered down. The media’s obsession with people, rather than with ideas, contributes strongly to this dilution. Personality, manners of expression and timing have become far more important than the message itself. When the scope for decisions also becomes short-term, the responsibility for many critical issues ends up compromised. Why has it come to this? Many different factors come into play. Firstly, the societal goals from the early 1900s – to eliminate poverty and develop a common welfare state – have essentially been achieved in most developed countries. Few political parties have managed to formulate a coherent vision for the future. Second: Interest in party politics is declining fast. Young people do not lack interest in political issues but they have little interest to join political parties.
valori international / YEAR 1 NO. 1 / JULY 2016
One reason is the aforementioned lack of vision, another has more to do with the ways parties work. Third: Financial market deregulation in the 1980s sharply reduced government control over the economy. The structure of the financial sector suffers serious deficiencies when it comes to the ways new credit is created and the ability – read inability! – to take the social and environmental risks into account. Such risks are instead passed on to society. Fourth: The myth of continuous material growth and thus the unwillingness to recognize that we need to re-think both the goals of the economy and how we organize it. Political parties usually have only one approach to development – growth in material terms. They do not want to accept that for reasons of climate change, environment and natural resources, we cannot continue to live as we have. Continued material growth is not sustainable from an environmental and climate perspective. Fifth: The growing commercialization of the media. Newspapers try to offset declining newsstand sales (due to most of the content being available online) with content that is oriented to the superficial and sensational. News coverage becomes shallower and deteriorates. Political issues are squeezed out; entertainment becomes much more important than in-depth analysis and discussions on vital issues for the society. Of course, all of this changes the conditions for both politics and recruitment to it. One can argue that shortcomings in the media are balanced by the rich opportunities to seek information online. But this requires the competence to know where to look. For the average person, this increasing deterioration of news media coverage leads to a weakening basis for forming opinions. ✱ * The contents of this editorial resume the concepts expressed by the author in some of his books. 3
summary
INTERNATIONAL
July 2016 monthly magazine www.valori.it year 1 issue 1 Registro Stampa del Tribunale di Milano # 304 dated April 15, 2005 ROC # 13562 dated March 18, 2006 Publisher Società Cooperativa Editoriale Etica Via Napo Torriani, 29 - 20124 Milan, Italy Promoted by Banca Etica Membership Fondazione Culturale Responsabilità Etica, Arci, Acli Milano, FairTrade Italia, Mag 2, Editrice Monti, First Cisl Nazionale, Cooperativa Sermis, Ecor, Cnca, First Cisl Brianza, Federazione Autonoma Bancari Italiani, Publistampa, Federazione Trentina della Cooperazione, Circom soc. coop. Board of Directors Sabina Siniscalchi, Roberto Grossi, Mauro Scarin, Maurizio Gemelli, Emanuele Patti, Paolo Ricotti, Filippo Miraglia, Donato Dall'Ava, Fabio Silva ([email protected]). General Management Giancarlo Roncaglioni ([email protected])
dossier
phototale 01/04
SUNSET 8 THE OF FOSSIL FUELS
Abandoned tankers and huge car graveyards have been swallowed up by the vegetation over the decades. Two hypothetical scenarios of what increasing disinvestments in fossil sources could lead up to. For the time being, two sources of environmental damage and social tragedy. From Bangladesh to the heart of old Europe.
Foundations, Churces, sovereign funds, big universities: more and more groups are deciding to stop investing in fossil fuels, inspiring the world energy market. And meanwhile stranded assets are increasing.
ethical finance
Board of Auditors Mario Caizzone, Danilo Guberti, Giuseppe Chiacchio (presidente) Executive editor Andrea Di Stefano ([email protected]) Editor-in-chief Emanuele Isonio ([email protected])
OECD lashing out at tax evaders. But not too hard Bank fines: a future full of doubts The red gold of multinationals
19 22 24
“Erin” and his brothers NIM Challenge for ethical banks Investment funds: a farewell to arms? EFSA’s criteria: so many doubts
31 36 37 39
critical shareholding
Assignment editor Via Napo Torriani, 29 - 20124 Milan, Italy ([email protected]) Contributors Andrea Barolini, Alberto Berrini, Matteo Cavallito, Corrado Fontana, Luca Martino, Mauro Meggiolaro, Andrea Vecci Translator Maurizio Boni ([email protected])
giganten new economy
43
Green energy: investors love steadiness How to corrupt the scientists Circular economy: all against Juncker
45 48 50
tax values bancor
52 54
Graphic design, layout and printing Publistampa Arti grafiche Via Dolomiti 36, Pergine Valsugana (Trento), Italy
United Church of Canada 5.9 million USD (4.7% of total investments) Completed
Roskilde Municipality Amount unknown Completed
GERMANY
PFZW Amount unknown Subtotal (all coal companies by 2020; 30% less investments in all fossil fuels)
3.4 trillion USD TOTAL ASSETS OF DISINVESTING INSTITUTIONS SOURCE: HTTP://GOFOSSILFREE.ORG/COMMITMENTS
516
DISINVESTING INSTITUTIONS
SOURCE: HTTP://GOFOSSILFREE.ORG/COMMITMENTS
28
Among the things it does, the Forest Stewardship Council® (FSC®) makes sure wood and wood products do not come from forests of special value, illegally cut or clear-cut harvested or from areas where civil rights and local traditions are breached.
valori international / YEAR 1 NO. 1 / JULY 2016
GOs / 13%
HOLLAND
Corporations / 3%
Axa 500 million euros (by the end of 2015) Subtotal (coal)
by Emanuele Isonio
Foundations / 24%
Allianz 4 billion euros, 90% of which in bonds Subtotal (companies with>30%of turnover from coal)
Münster Municipality Amount unknown Completed
FRANCE
Pension funds / 13%
University of California 200million USD Subtotal (coal and tar sands only)
A journey through over 500 institutions and next to 3 thousand and a half billon USD. Dozens of states involved, from Europe to North America, via Australia and New Zealand. The most obvious proof of how real the chance of changing the world may be – not just the social world but the economic and business worlds too and even steering the choices of the industrial fabric – by “voting with one’s purse”. The phenomenon of disinvestments in arguably controversial, inappropriate and immoral industries is no longer something that has to do with snow-white souls and incurable idealists. From religious institutions, it has spread into many universities of the Anglo-Saxon world and has even affected the investments funds of dynasties that until then had built their empires on oil. And now, maybe for less ethical but more pragmatic reasons, the fever has even caught the investment funds and insurance companies. A swollen river that slowly but inexorably is drying up the fossil industry’s funds. And promises instead of putting wings on those industries that try to put the words “profit” and “sustainability” in the same sentence.
PFA Pension Amount unknown Subtotal (investments in tar sands)
WWF UK No investments in fossil fuels since 2006 Completed
University of Washington Amount unknown Subtotal (coal only)
28 the map of the month
DENMARK
Faith-based groups / 27%
Union Theological Seminary Amount unknown Completed
Lund University Amount unknown Subtotal
BMA (British Medical Association) Amount unknown Completed
Anglican Church 12 million pounds Subtotal (coal and tar sands)
Colleges, universities, schools / 12%
Rockefeller Brothers Fund 45 million USD Completed*
City of Uppsala Amount unknown Completed
NGOs / 6%
STATI UNITI
SWEDEN
Guardian Media Group Amount unknown. 5-year disinvestment Completed
Canadian Medical Association 1.8million USD Completed
other than oil
SOURCE: HTTP://GOFOSSILFREE.ORG/COMMITMENTS/, THE GUARDIAN
University of Glasgow 18million pounds in 10 years Completed
CANADA
manchette
Government Pension Fund of Norway 52 coal companies left out Subtotal (coal only)
City of Oslo Amount unknown. 7 million USD disinvested from coal only Total
UK
City of San Francisco 583million USD disinvested since 91 Completed
No part of this publication may be reproduced without quoting the source. Despite our attempts, we may have failed to find the original source of a picture; in this case please contact the publisher, which will be prepared to fulfil all of the relevant formalities.
NORWAY
The divesting world
Other / 0%
Distribution Press Di - Segrate (Milan, Italy)
numbers from the earth
Healthcare / 1%
Photos and illustrations Greenpeace; Ugo Panella; Cesar Sangalang, Tim De Waele, Thomas Geersing, Stefan “Stoipi” Seger (flickr.com); Shareaction; Boston Library (NYT) (en.wikipedia.org)
German Presseversorgungswerk Amount unknown Subtotal (companies with>30%of turnover from coal)
SWITZERLAND
Ecumenical Church Council Amount unknown Completed
World Lutheran Federation Amount unknown Completed
NGO Foundation Pension fund Religious order Public body Publishing group University Trade association Insurance company Investment fund
AUSTRALIA
Hunter Hall Investment Management Amount unknown Completed*
Australian National University Amount unknown Subtotal (only companies with >20% of turnover from coal)
Planned disinvestments Type of disinvestment
NEW ZEALAND
Victoria University of Wellington Amount unknown Total
Presbiterian Church of New Zealand Amount unknown Total
* Coal, oil, gas
valori international / YEAR 1 NO. 1 / JULY 2016
29
The energy used to make this magazine is 100% from renewable sources, traced and guaranteed at the source by the GO certification system.
THE DIVESTING WORLD
From Europe to North America, via Australia and New Zealand: a journey through over 500 institutions and next to 3 thousand and a half billon USD to discover the phenomenon of disinvestments.
Year 1 number 1 july 2016
INTERNATIONAL
€ 4,00
GREENPEACE
Magazine of social economy, ethical finance and critical shareholders
OECD LASHING OUT AT TAX EVADERS BUT NOT TOO HARD
critical shareholders
NEW EXPERIENCES FLOURISH IN EUROPE
GREEN ENERGY INVESTORS LOVE STEADINESS
new economy
9 788899 095222
ISBN 978-88-99095-22-2
Poste Italiane S.p.A. Spedizione in abbonamento postale D.L. 353/2003 (conv. in L. 27/02/2004 n. 46) art. 1, comma 1, NE/VR.
ethical finance
International disinvestment campaigns are speeding up the death of fossil fuels. Those who have kept investing in this area have suffered huge losses. And stranded assets increase
Bye-bye, oil
2
valori international / YEAR 1 NO. 1 / JULY 2016
editorial
A NEW MODEL FOR THE FUTURE by Anders Wijkman
L’AUTORE
ANDERS IVAR SVEN WIJKMAN, 71, is a Swedish
opinion leader, author and politician. As member of the European Parliament from 1999 to 2009, he focused on issues related to climate change, environment, development cooperation and humanitarian affairs. He is a member of the Christian Democrats, part of the European People’s Party European Democrats group. Anders has been a member of the Swedish parliament, secretary general of the Swedish Red Cross, and president of the International Red Cross Disaster Relief Commission. Anders Wijkman is vice President of Club of Rome and the Tällberg Foundation. He is a member of the Royal Swedish Academy of Sciences and he is also a councillor for the World Future Council.
I
have politics to thank for much in my life. The work as a member of a parliament is rich and diverse.Eight years in the Swedish parliament and then ten years in the European Parliament have given me unique insights into how political parties think and work. In spite of my positive experience, I am very concerned about the current state of politics, particularly the development of political parties. Society’s increased complexity ought to be addressed through a broader perspective, increased learning, new institutions, greater expression for the principle of global solidarity and justice and a more long-term attitude in decision-making. But we see little of this. Instead, political decisions continue to be dominated by tunnel vision and shortsightedness. Seen from my perspective, the current political system is poorly equipped to deal with many of the complex problems our societies face. An economic model that worked well during the post-war period does not automatically provide the right framework for today’s increasingly globalized world. I have witnessed how politics has become increasingly symbolic, while its content has been watered down. The media’s obsession with people, rather than with ideas, contributes strongly to this dilution. Personality, manners of expression and timing have become far more important than the message itself. When the scope for decisions also becomes short-term, the responsibility for many critical issues ends up compromised. Why has it come to this? Many different factors come into play. Firstly, the societal goals from the early 1900s – to eliminate poverty and develop a common welfare state – have essentially been achieved in most developed countries. Few political parties have managed to formulate a coherent vision for the future. Second: Interest in party politics is declining fast. Young people do not lack interest in political issues but they have little interest to join political parties.
valori international / YEAR 1 NO. 1 / JULY 2016
One reason is the aforementioned lack of vision, another has more to do with the ways parties work. Third: Financial market deregulation in the 1980s sharply reduced government control over the economy. The structure of the financial sector suffers serious deficiencies when it comes to the ways new credit is created and the ability – read inability! – to take the social and environmental risks into account. Such risks are instead passed on to society. Fourth: The myth of continuous material growth and thus the unwillingness to recognize that we need to re-think both the goals of the economy and how we organize it. Political parties usually have only one approach to development – growth in material terms. They do not want to accept that for reasons of climate change, environment and natural resources, we cannot continue to live as we have. Continued material growth is not sustainable from an environmental and climate perspective. Fifth: The growing commercialization of the media. Newspapers try to offset declining newsstand sales (due to most of the content being available online) with content that is oriented to the superficial and sensational. News coverage becomes shallower and deteriorates. Political issues are squeezed out; entertainment becomes much more important than in-depth analysis and discussions on vital issues for the society. Of course, all of this changes the conditions for both politics and recruitment to it. One can argue that shortcomings in the media are balanced by the rich opportunities to seek information online. But this requires the competence to know where to look. For the average person, this increasing deterioration of news media coverage leads to a weakening basis for forming opinions. ✱ * The contents of this editorial resume the concepts expressed by the author in some of his books. 3
summary
INTERNATIONAL
July 2016 monthly magazine www.valori.it year 1 issue 1 Registro Stampa del Tribunale di Milano # 304 dated April 15, 2005 ROC # 13562 dated March 18, 2006 Publisher Società Cooperativa Editoriale Etica Via Napo Torriani, 29 - 20124 Milan, Italy Promoted by Banca Etica Membership Fondazione Culturale Responsabilità Etica, Arci, Acli Milano, FairTrade Italia, Mag 2, Editrice Monti, First Cisl Nazionale, Cooperativa Sermis, Ecor, Cnca, First Cisl Brianza, Federazione Autonoma Bancari Italiani, Publistampa, Federazione Trentina della Cooperazione, Circom soc. coop. Board of Directors Sabina Siniscalchi, Roberto Grossi, Mauro Scarin, Maurizio Gemelli, Emanuele Patti, Paolo Ricotti, Filippo Miraglia, Donato Dall'Ava, Fabio Silva ([email protected]). General Management Giancarlo Roncaglioni ([email protected])
dossier
phototale 01/04
SUNSET 8 THE OF FOSSIL FUELS
Abandoned tankers and huge car graveyards have been swallowed up by the vegetation over the decades. Two hypothetical scenarios of what increasing disinvestments in fossil sources could lead up to. For the time being, two sources of environmental damage and social tragedy. From Bangladesh to the heart of old Europe.
Foundations, Churces, sovereign funds, big universities: more and more groups are deciding to stop investing in fossil fuels, inspiring the world energy market. And meanwhile stranded assets are increasing.
ethical finance
Board of Auditors Mario Caizzone, Danilo Guberti, Giuseppe Chiacchio (presidente) Executive editor Andrea Di Stefano ([email protected]) Editor-in-chief Emanuele Isonio ([email protected])
OECD lashing out at tax evaders. But not too hard Bank fines: a future full of doubts The red gold of multinationals
19 22 24
“Erin” and his brothers NIM Challenge for ethical banks Investment funds: a farewell to arms? EFSA’s criteria: so many doubts
31 36 37 39
critical shareholding
Assignment editor Via Napo Torriani, 29 - 20124 Milan, Italy ([email protected]) Contributors Andrea Barolini, Alberto Berrini, Matteo Cavallito, Corrado Fontana, Luca Martino, Mauro Meggiolaro, Andrea Vecci Translator Maurizio Boni ([email protected])
giganten new economy
43
Green energy: investors love steadiness How to corrupt the scientists Circular economy: all against Juncker
45 48 50
tax values bancor
52 54
Graphic design, layout and printing Publistampa Arti grafiche Via Dolomiti 36, Pergine Valsugana (Trento), Italy
United Church of Canada 5.9 million USD (4.7% of total investments) Completed
Roskilde Municipality Amount unknown Completed
GERMANY
PFZW Amount unknown Subtotal (all coal companies by 2020; 30% less investments in all fossil fuels)
3.4 trillion USD TOTAL ASSETS OF DISINVESTING INSTITUTIONS SOURCE: HTTP://GOFOSSILFREE.ORG/COMMITMENTS
516
DISINVESTING INSTITUTIONS
SOURCE: HTTP://GOFOSSILFREE.ORG/COMMITMENTS
28
Among the things it does, the Forest Stewardship Council® (FSC®) makes sure wood and wood products do not come from forests of special value, illegally cut or clear-cut harvested or from areas where civil rights and local traditions are breached.
valori international / YEAR 1 NO. 1 / JULY 2016
GOs / 13%
HOLLAND
Corporations / 3%
Axa 500 million euros (by the end of 2015) Subtotal (coal)
by Emanuele Isonio
Foundations / 24%
Allianz 4 billion euros, 90% of which in bonds Subtotal (companies with>30%of turnover from coal)
Münster Municipality Amount unknown Completed
FRANCE
Pension funds / 13%
University of California 200million USD Subtotal (coal and tar sands only)
A journey through over 500 institutions and next to 3 thousand and a half billon USD. Dozens of states involved, from Europe to North America, via Australia and New Zealand. The most obvious proof of how real the chance of changing the world may be – not just the social world but the economic and business worlds too and even steering the choices of the industrial fabric – by “voting with one’s purse”. The phenomenon of disinvestments in arguably controversial, inappropriate and immoral industries is no longer something that has to do with snow-white souls and incurable idealists. From religious institutions, it has spread into many universities of the Anglo-Saxon world and has even affected the investments funds of dynasties that until then had built their empires on oil. And now, maybe for less ethical but more pragmatic reasons, the fever has even caught the investment funds and insurance companies. A swollen river that slowly but inexorably is drying up the fossil industry’s funds. And promises instead of putting wings on those industries that try to put the words “profit” and “sustainability” in the same sentence.
PFA Pension Amount unknown Subtotal (investments in tar sands)
WWF UK No investments in fossil fuels since 2006 Completed
University of Washington Amount unknown Subtotal (coal only)
28 the map of the month
DENMARK
Faith-based groups / 27%
Union Theological Seminary Amount unknown Completed
Lund University Amount unknown Subtotal
BMA (British Medical Association) Amount unknown Completed
Anglican Church 12 million pounds Subtotal (coal and tar sands)
Colleges, universities, schools / 12%
Rockefeller Brothers Fund 45 million USD Completed*
City of Uppsala Amount unknown Completed
NGOs / 6%
STATI UNITI
SWEDEN
Guardian Media Group Amount unknown. 5-year disinvestment Completed
Canadian Medical Association 1.8million USD Completed
other than oil
SOURCE: HTTP://GOFOSSILFREE.ORG/COMMITMENTS/, THE GUARDIAN
University of Glasgow 18million pounds in 10 years Completed
CANADA
manchette
Government Pension Fund of Norway 52 coal companies left out Subtotal (coal only)
City of Oslo Amount unknown. 7 million USD disinvested from coal only Total
UK
City of San Francisco 583million USD disinvested since 91 Completed
No part of this publication may be reproduced without quoting the source. Despite our attempts, we may have failed to find the original source of a picture; in this case please contact the publisher, which will be prepared to fulfil all of the relevant formalities.
NORWAY
The divesting world
Other / 0%
Distribution Press Di - Segrate (Milan, Italy)
numbers from the earth
Healthcare / 1%
Photos and illustrations Greenpeace; Ugo Panella; Cesar Sangalang, Tim De Waele, Thomas Geersing, Stefan “Stoipi” Seger (flickr.com); Shareaction; Boston Library (NYT) (en.wikipedia.org)
German Presseversorgungswerk Amount unknown Subtotal (companies with>30%of turnover from coal)
SWITZERLAND
Ecumenical Church Council Amount unknown Completed
World Lutheran Federation Amount unknown Completed
NGO Foundation Pension fund Religious order Public body Publishing group University Trade association Insurance company Investment fund
AUSTRALIA
Hunter Hall Investment Management Amount unknown Completed*
Australian National University Amount unknown Subtotal (only companies with >20% of turnover from coal)
Planned disinvestments Type of disinvestment
NEW ZEALAND
Victoria University of Wellington Amount unknown Total
Presbiterian Church of New Zealand Amount unknown Total
* Coal, oil, gas
valori international / YEAR 1 NO. 1 / JULY 2016
29
The energy used to make this magazine is 100% from renewable sources, traced and guaranteed at the source by the GO certification system.
THE DIVESTING WORLD
From Europe to North America, via Australia and New Zealand: a journey through over 500 institutions and next to 3 thousand and a half billon USD to discover the phenomenon of disinvestments.
