Search

This chapter provides a broad snapshot of the current state of the field and identify some key challenges that lay ahead. Official government policies have been complemented by quasi-legal initiatives such as the Principles for Responsible Investment (PRI), Carbon Disclosure Project (CDP) and the Equator Principles referred to above, all of which have played an important role in increasing awareness of climate and social issues inside the investment community. Climate bonds, also referred to as green bonds, represent an important new instrument for mobilizing capital for climate mitigation and adaptation projects. Debt-for-nature swap means that debt is erased in return for investments in local natural resources or conservation measures. Countries and companies around the world have invested heavily in existing carbon-intensive infrastructure. The economic life expectancy of fossil fuel production facilities and power plants is many decades, provided regular servicing and upgrades.

Major private and public investments are needed to transform the EU economy to deliver on climate, environmental and social sustainability goals, including the Paris Agreement and the UN Sustainable Development Goals (SDGs). Sustainable finance makes sustainability considerations part of financial decision-making (i.e., Management Systems and Decision Frameworks). One of the options the EU has chosen is to create a taxonomy of green investments and transition technologies. This taxonomy can serve as framework for investors. Investors will need to report to what extent their investments are taxonomy compliant. Also the EU considers creating two low carbon benchmarks to guide investors towards low carbon investing.

Quadri-pulse stimulation (QPS), a type of repetitive transcranial magnetic stimulation (rTMS), can induce a considerable aftereffect on cortical synapses. Human experiments have shown that the type of effect on synaptic efficiency (in terms of potentiation or depression) depends on the time interval between pulses. The maturation of biophysically-based models, which describe the physiological properties of plasticity mathematically, offers a beneficial framework to explore induced plasticity for new stimulation protocols. To model the QPS paradigm, a phenomenological model based on the knowledge of spike timing-dependent plasticity (STDP) mechanisms of synaptic plasticity was utilized where the cortex builds upon the platform of neuronal population modeling. Induced cortical plasticity was modeled for both conventional monophasic pulses and unidirectional pulses generated by the cTMS device, in a total of 117 different scenarios. For the conventional monophasic stimuli, the results of the predictive model broadly follow what is typically seen in human experiments. Unidirectional pulses can produce a similar range of plasticity. Additionally, changing the pulse width had a considerable effect on the plasticity (approximately 20% increase). As the width of the positive phase increases, the size of the potentiation will also increase. The proposed model can generate predictions to guide future plasticity experiments. Estimating the plasticity and optimizing the rTMS protocols might effectively improve the safety implications of TMS experiments by reducing the number of delivered pulses to participants. Finding the optimal stimulation protocol with the maximum potentiation/depression can lead to the design of a new TMS pulse generator device with targeted hardware and control algorithms.

Theories of change revisited. In the context of the Sustainable Development Goals (SDGs) and the challenges ahead, actors must think beyond an innovation strategy above and foremost about the impact they want to achieve. They need to realise that impact does not stem from innovation but from the scaling of innovation results. Thus the outcomes of their theory of change in terms of what their innovation should achieve becomes of key importance. There needs to be a paradigm shift: Today we move from problem solving concepts like environmental and social governance to creating a future based on the SDGs, which provide target knowledge. How does economy 3.0 look like in 2030, 2400 or 2050?

Mit dem Austritt des Vereinigten Konigreiches aus dem Kreis der Europaischen Union verliert die EU zum ersten Mal ein Mitgliedsland. Fur die Austrittsbefurworter im Vereinten Konigreich geht es um eine wichtige Zukunfts- und Positionierungsfrage: Mit welchem Wirtschaftsmodell kann sich das Vereinigte Konigreich auserhalb der EU am besten positionieren? Die EU mit ihren vermeintlich protektionistischen Handelshemmnissen und wahrgenommener Uberregulierung wird jedenfalls abgelehnt. Von einem Singapur an der Themse mit wenig Regulierung, freien Markten und einem schlanken Staat, der sich so wenig wie moglich einmischt, ist die Rede. Der Artikel geht mithilfe der Inhaltsanalyse der Frage nach, was die Auswirkungen dieses Wirtschaftsmodells auf die Londoner City und die im Vereinigten Konigreich hoch entwickelte Finanzwirtschaft sind. Initiiert der Brexit eine relevante Verlagerung der Finanzwirtschaft in die EU? Was sind die strategischen Visionen der Briten? Welche politischen, wirtschaftlichen, regulatorischen und organisationellen Auswirkungen hat der Austritt?

OBJECTIVE: A transcranial magnetic stimulation system with programmable stimulus pulses and patterns is presented. The stimulus pulses of the implemented system expand beyond conventional damped cosine or near-rectangular pulses and approach an arbitrary waveform. METHODS: The desired stimulus waveform shape is defined as a reference signal. This signal controls the semiconductor switches of an H-bridge inverter to generate a high-power imitation of the reference. The design uses a new paradigm for TMS, applying pulse-width modulation with a non-resonant, high-frequency switching architecture to synthesize waveforms that leverages the low-pass filtering properties of neuronal cells. The modulation technique enables control of the waveform, frequency, pattern, and intensity of the stimulus. RESULTS: A system prototype was developed to demonstrate the technique. The experimental measurements demonstrate that the system is capable of generating stimuli up to 4 kHz with peak voltage and current values of ±1000 V and ±3600 A, respectively. The maximum transferred energy measured in the experimental validation was 100.4 Joules. To characterize repetitive TMS modalities, the efficiency of generating consecutive pulse triplets and quadruplets with interstimulus intervals of 1 ms was tested and verified. CONCLUSION: The implemented TMS device can generate consecutive rectangular pulses with a predetermined time interval, widths and polarities, enables the synthesis of a wide range of magnetic stimuli. SIGNIFICANCE: New waveforms promise functional advantages over the waveforms generated by current-generation TMS systems for clinical neuroscience research.

Since the 2007/2008 financial crisis, questions have been raised about how financial markets operate and can benefit society (Shiller, Finance and the Good Society. Princeton: Princeton University Press 2013; Zingales, Does Finance Benefit Society? Cambridge, MA: National Bureau of Economic Research, 2015). Around the globe, new investment models able to reflect responsible behavior have been claimed in order to keep financial markets in tune with the development of society.

Behavioural finance, social entrepreneurship, impact investing, zero carbon, Paris Agreement, COP 21 and UN Sustainable Development Goals, green bonds and Social Impact Bonds (SIB) are merged in Integral Investing. In SIB, beyond financial innovation, Rosella Care describes the implication of SIBs on the real economy and the public and private sectors and deals with impact matrix and standards. A movement known as collective impact has facilitated successful collaborations in the social sector and it can guide companies' efforts to bring together the various actors in their ecosystems to catalyse change. Green bonds are in the centre of the strategy to redirect huge financial resources into climate projects which will be crucial in order to reach the two degree target agreed upon in Paris. Projects such as the UNEP Inquiry, looking into how the financial system can contribute to a green and sustainable economy, have led to intense discussions on the role of financial players in contributing to sustainable development.

Impact investments have become one of the most important and most talked about market approaches. Many authors have tried to clarify the boundaries of this emerging investing approach, but several aspects remain unexplored. In particular, to date not many studies have focused on actors and instruments currently available. Moving from these considerations, this chapter aims to: (1) provide a deeper understanding of the impact investing landscape through a systematic literature review, by providing an assessment of the instruments and actors involved; (2) analyze the investors’ preferences by using a pilot survey; and (3) discuss the major trends and challenges that have emerged, both in theory and practice. The exploratory nature of the study was maximized using a qualitative approach. This chapter contributes to the academic debate by providing a preliminary attempt to understand actors and instruments available and the impact investors’ preferences and characteristics.

Integrating impact into investment and financial decision making based on the SDGs is a nascent field of research. At the moment, it is mostly practitioners that are driving the impact assessment process and its integration into investment and finance. Some academic research has been done on the consequences of consistent implementation of ESG standards and their value in de-risking assets, managing reputation and preventing damage to communities and environment, finally showing up in a better rating, lower operational risk or a higher good will. While this ex post perspective on consequences of leadership behaviour is useful, it does not provide management with a practical ex ante decision making tool, expanding decision making to integrate impact as a new decision making perspective. The ex ante decision support function of impact in opportunity recognition and scenario modelling has not been researched so far.

When I started Triple Bottom Line Investing (TBLI) nearly 20 years ago, I wanted TBLI Group’s mission to create an inclusive values based economy. The Triple bottom line approach. All investments should provide a financial, social and environmental return, and not only a financial return. Since 1996, the Triple Bottom Line Group (TBLI) has been building the ecosystem for the Impact Investing and Environmental, Social and Corporate Governance (ESG) community, providing advisory, educational services and networking events. One of the star products is the TBLI CONFERENCE, which is the longest-running global forum bringing together investors, asset managers and thought leaders in sustainable finance.

The demand for investments that combine financial return with desired social or environmental impact is growing. Thus far, impact investing has been the domain of high-net-worth individuals, family offices, and foundations, while non-accredited investors have been generally unable to participate in this expanding market. The creation of regulated funding platforms known as social stock or impact exchanges (SSEs) has been proposed as a necessary step towards democratizing and popularizing impact investing. Although early attempts at launching SSEs have been largely unsuccessful, several initiatives are currently under development in various parts of the world. In light of these efforts, this paper offers a brief history of and a literature review on SSEs, identifies the key conditions and success criteria, as well as threats and challenges, for their continued development, and suggests some potential SSE-related research themes.

The demand for investments that combine financial return with desired social or environmental impact is growing. Given the recent upsurge in entrepreneurship, shifting attitudes towards the role of business in society, and a broad policy push for sustainable development, there should also be no shortage of investors and financiers eager to absorb this demand. The problem, as emphasized both by WEF and UNEPFI, lies in matching assets that create positive impact with investors in a manner that is efficient, effective, transparent, and scalable. In other words, redirecting investment and finance, to impact oriented investments compatible with the UN Sustainable Development Goals and the Paris Agreement is a key factor in turning around the investment philosophy. The same applies to the process of creating and growing impact assets, and supporting entrepreneurs in their search for capital. Both factors are crucial for making the ‘impact economy’ grow exponentially rather than linearly. Today impact investing is mostly the domain of wealthy individuals, foundations, and family offices. Non-accredited investors and/or retail investors plus pensions funds are not yet able to meaningfully participate in this new way of investing. This is because of a lack of products, a lack of access to products available to more affluent investors, a lack of impact advisors serving that segment of the market, and a lack of transaction platforms. It has been argued that not enough assets can be found that match the impact definition. The creation of regulated funding platforms known as social stock or impact exchanges (SSEs) has been proposed as a necessary step towards democratizing and popularizing impact investing, easing the asset search process for investors and capital access for entrepreneurs. While the need for SSE is heavily debated in expert circles along with the challenges they may bring about, the first SSEs have come into existence in the UK, US, Canada, and Singapoore, complemented by some smaller SSEs in Brazil, South Africa and Kenya. This paper offers a prognosis about the contribution of SSEs in establishing an efficient market, addressing investment gaps and redirecting capital based on a literature review, analysis on unmet interests and needs and open questions in impact investing.

Integrating environmental, social and governance impacts into investment and financial decision making and especially focussing on the upside of ESG (positive) impact investing is a nascent field of research. At the moment, it is mostly practitioners that are driving the impact assessment process and its integration into investment and finance. This has various reasons from managing risks effectively to protecting reputation and addressing stakeholder requirements. The process is most obvious on the lending side where collaborations between the Worldbank, International Finance Corporations, other multilaterals and the private banking sector have contributed to the development of relatively consistent ESG standards which are often referred to as "Global Administrative Law". It has become increasingly the norm for international development banking institutions, including multilateral development banks (MDBs), and many private sector lenders, to adopt comprehensive environmental, social and governance (ESG) safeguard policies and standards to circumscribe the projects and activities they finance. This is particularly the case in the financing of major infrastructure projects in developing countries or economies in transition. For Internationals Banks it is today good practice to integrate environmental, social and governance considerations into the lending process. For project and structure finance, the Equator Principles offer a financial industry benchmark for determining, assessing and managing environmental and social risk in international finance activities. For lenders such as the EBRD or IFC that focus on private sector lending, the performance standards of environmental and social governance are imposed upon private corporate entities, against which most requirements of international law could never be formally applied. The Equator Principles Association website recognises growing 'convergence around common environmental and social standards', as well as the 'development of other responsible environmental and social management practices in the financial sector and banking industry', such as the Carbon Principles or the Cross-Sector Biodiversity Initiative. Also the export credit agencies, through the 2012 OECD Common Approaches, are increasingly drawing on the same standards as the EPs'.

The Equator Principles (EP) are considered the ‘gold standard’ in managing environmental, social and governance (ESG) risks that occur in the context of Project Finance (PF), Foreign Direct Investment (FDI), Public Private Partnerships (PPPs), and Structured Export Finance (SEF). The EP integrate environmental and social due diligence, review of management systems and governance review, stakeholder engagement, and project level grievance mechanisms to decrease and mitigate social and environmental risks, impacts and conflicts and make finance more resilient. Reducing risk and ensuring better governance, both by extra-financial due diligence using a multi-stakeholder approach and directly integrating process-oriented conflict resolution mechanisms (CRMs) into the financing lifecycle, gathers increasing interest both in academia and among financial practitioners. Conflict resolution mechanisms (CRM), conflict analysis tools and mediation and how they contribute to conflict resolution is a nascent field of research and a nascent business practice. The interest in conflict resolution mechanisms is driven by a shared understanding that an effective CRM needs a constructive negotiation climate, a certain degree of trust between the affected communities and other stakeholders, overcoming a variety of country-specific systems issues, a multi-disciplinary approach to conflict mediation, and the courage to address cultural diversity in conflict patterns. Creating a CRM that is globally applicable, fair, accessible, and allows for conflict resolution along the entire lifecycle of the financed project, is highly desirable as it would offer a palatable solution to conflict situations that currently undermine FDI and create considerable social costs and hardship for the affected communities in locations alongside financial losses where sensitive investments take place. This article asks whether it is reasonable to keep financial institutions away from dispute resolution or whether their participation could have beneficial effects, such as avoiding conflict, de-risking assets, avoiding reputational risk as well as real financial and social costs, and creating better relationships with the affected communities. Existing mechanisms used by various financial institutions are evaluated and the London 2012 Olympic Games Complaint and Dispute Resolution Mechanism (CDRM) is used as a blueprint for a workable private sector CRM for private banks and the Equator Principles Financial Institutions (EPFI) Association. Finally, the article will explore some potential benefits and opportunities, as well as risks and downsides, in using cooperative methods and mediation in conflict resolution.

German Abstract: Der Ethikbeirat des Senats der Wirtschaft hat den SDG Award lanciert, um Unternehmen, die als Vorreiter ihrer Branche in der Umsetzung der UN Nachhaltigkeitsziele (UN Sustainable Development Goals, https://sustainabledevelopment.un.org/sdgs) agieren, zu pramieren. Damit soll einerseits gezeigt werden, dass es schon eine Vielzahl von Unternehmen und anderen Akteuren gibt, die sich bereits seit langem dem global notwendigen Ziel der nachhaltigen Entwicklung verschrieben haben. Andererseits sollen Anreize geschaffen werden und visionare Unternehmer mit Moellcharakter („best practices“) auf die Buhne gebracht werden, um so Moglichkeiten und Wege zu wirtschaftlichem und gleichzeitig ethischem Verhalten aufzuzeigen. English Abstract: In the face of humanity’s unsustainable journey, the current geo-political crises, overpopulation, and climate challenges, the implementation of the 17 Sustainable Development Goals (SDG) of the United Nations and the ambitious Paris climate accord (COP21), have become an unavoidable obligation. Yet, business leaders, policy makers, economists, the civil society, and political leaders are daunted by the task at hand. This SDG award is the first to provide entrepreneurs with outstanding achievements that provide concrete solutions to the global challenges through innovation and pave the way toward an integrally sustainable future when it is aligned with societal values and driven by their explicit intention to have a positive impact in the world. It shows how to integrate, in an equal measure, the investment criteria for people, planet, and profit and how to align them with one’s own passion and purpose within the investment thesis.