01 31
Industrial Capitalism Vs Finance Capitalism
A critical issue facing the environmental movement is the way we structure our economic policies. The world of high-brow economic theory has waged a pitched battle for about two hundred years over the benefits of Industrial Capitalism versus Finance Capitalism. Now, if you've read Janes Jacob's "The Nature of Economies," you know that the way we structure our financial markets can have a cause and effect relationship on the environment. Some feel that when FInance Capitalism won out in the 1970s the world took a turn towards complete environmental collapse.

I am not an economist and cannot claim any great insight into the clash between these systems. I have, however found a compelling essay that explains it well. Jonathan Larson is the author and this is posted on his website. (I am assuming creative commons copyright on this essay. Please go to Mr. Larson's site for more essays on his theories of "Elegant Technology ... economic prosperity through environmental renewal.")

Economics: A Matter of Life or Death by Jonathan Larson

(first posted at European Tribune, Jan 18, 2007)

When I took economics at the University of Minnesota in the early 1970s, one of my professors was Walter Heller. Heller was President Kennedy's Council of Economic Advisors chairman and would claim, quite seriously, that he taught Kennedy Keynesianism.

In those days, the Keynesians were utterly dominant in academe and government. There were so many of them, they had subdivided into various schools. It could be argued that Heller represented the right wing of the Keynesian school. His economics department used the Neoclassical Samuelson text and his primary accomplishment in the Kennedy administration was his tax cut suggestion. But even from the right wing of the Keynesian impulse, Heller was quite clear that he thought folks like Milton Friedman were at best mistaken and quite possibly insane. Yet by the time I graduated, the acolytes of Friedman were running the economy of Chile with their sights set MUCH higher. And yes, they would set the economic operating assumptions for planet earth for a generation.

There has been a lot of invented terminology to describe the change in fortunes of the Keynesians and the Friedmanites. But the MOST descriptive was that it marked the change from Industrial to Finance Capitalism. If River Rouge was the defining symbol of Industrial Capitalism, then the archetypical example of Finance Capitalism was Enron.

Enron embodied the major flaws of Finance Capitalism--it was only possible because of economic deregulation, it relied on a willing suspension of disbelief in all reasonable measures of prudence, it sold cotton-candy products like weather futures, and it relied on industrial sabotage to make its fantasy profit targets.

All of these maneuvers were done in public with the main movers featured prominently on the covers of the business press. Phil Gramm, who shepherded Enron's enabling deregulation through the Senate, was a regular talking head on the television news shows because he was a true believer who preached, as a trained economist, that deregulation was necessary and virtuous. This was not some sort of invisible conspiracy, this was a seizure of the intellectual high ground.

But, scream the apologists for Finance Capitalism, we are not industrial saboteurs, vandals, and rip-off artists. We are SCIENTISTS and one of our members has been rewarded with a Nobel since 1968.

And sure enough, the defenders of Finance Capitalism have erected an awesome intellectual apparatus to justify their crazy ideas and when all else fails, they point to rising numbers at their Meccas--the trading pits of the various stock exchanges world-wide.

The problem is that under the rules of Finance (...read more...)

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01 29
Atwood Does Alberta

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Margaret Atwood, photo from www.greenpeace.ca

Reading Toronto contributor Margaret Atwood (oh, and noted Canadian author) gave Richard Helm of the Edmonton Journal an interview this week and the Alberta oil patch may never be the same. What’s Atwood’s position on Alberta’s energy industry?

“The easiest way to deal with the energy problem at the moment is to use less of it, which of course oilpatch doesn’t want to hear. But they may get around to wanting to hear it once they put some of their money into other forms, which a lot of energy companies elsewhere are proceeding to do, because they have seen the future.

“The problem with Mr. Harper is that one feels in so many ways he’s in the past, and he wants to be there and he wants everyone else to be there. And not just the past as in maybe 1985, but the past as in 1952. You see that on a lot of fronts—it’s the social attitude and also the attitude towards culture and it goes along with the attitude towards green stuff. He’ll do it if pushed, but he’s not going willingly.”

Congratulations to Atwood for continuing to use her voice to advance environmental concerns. 

[email this story] Posted by Robert Ouellette on 01/29 Comment Here (1)
01 25
Toby Heaps: Davos Diary

imageBy Toby Heaps: Editor of Corporate Knights magazine which publishes the annual Global 100 Most Sustainable Corporations list each year at the World Economic Forum.

----------------------------

Environment themes and their relationship with the economy, particularly climate change, are hot this year in Davos.

Case in point. Last night I was waiting outside the Belvedere, the main Davos Hotel where the glitterati gather at night. As I was running a little late and it was quite a long line to get inside the hotel through the security check, I wondered if anyone would notice if I budded a little. But when I noticed that the Premier of Quebec was waiting behind me in the cold line, my better instincts suggested that was not a good idea, especially in Switzerland.

The Premier and I were both heading for similar events. He was off to speak on a panel with UK Conservative Leader David Cameron on climate change and energy security, and I had a dinner to co-host. I was looking forward to the dinner for two reasons: to hear what the world’s leading investment bankers had to say on taking the good fight (climate change, human rights) to the political stage, and I was curious how the red-blooded Wall Street crowd (Goldman Sachs, JP Morgan, Swiss Re) would appreciate the 100 per cent vegetarian-meal I had ordered for all of them.

It turned out that the hi-carb but low-carbon veggie-lasagna was a big hit, but my dinner conversation was interrupted when a senior Canadian aluminum company executive had to go outside to answer questions from a newspaper survey on whether his company supported the Kyoto Protocol and what they were doing about it.

After dinner, a senior investment banker from the US started talking about his company’s fleet of hybrids and eco-efficient headquarters. I took a big gulp of red wine, hoping to dull my senses to the coming barrage of PR. But then the boom lowered. Investment banker after investment banker stated the obvious: banks have a small direct effect on the environment but through financing activities they have a huge indirect effect, bigger than many governments. One of the top investment bankers in the US said with the same glint in his eye as a prospector finding gold: “this area [renewable energy] is very hot right now in our firm to be spending money on.” The head of an industry group focused on corporate responsibility noted that when Goldman Sachs included environment and social metrics in its energy sector analysis, it had a bigger impact than a 1000 socially responsible investment funds could ever have.

But the bottom line, the consensus went, was there must be a broader economic basis for protecting the environment. In the words of one US bank chief, “there is a clear social cost to destroying the environment and we see a role for government to play in helping measure that cost, and in getting money from the destroyers to the people they hurt.” He backed up his comments disclosing that his firm lobbies US Congress for stricter environmental regulations and gives money to political action committees on this basis.

A UK climate lobbyist pointed out that while winners go to market, losers go to Washington. The consensus among the participants was that the winners need to go to Washington too, in order to help balance out the aggressively negative lobbying by the losers from policies (i.e. carbon taxes) that would align economic drivers with by providing accountability for environmental costs. As a fair amount of the discussion had to this point focused on the implications of (...read more...)

[email this story] Posted by Toby Heaps on 01/25 Comment Here (0)
01 24
Global 100 Gets Attention
In case you missed yesterday's Globe and Mail, Corporate Knights' Global 100 got some good coverage. In cooperation with Innovest Strategic Value Advisors, Corporate Knights publishes a list of the world's top 100 most sustainable companies. Here is that list:

The 2007 List

The Global 100 list for 2007 (alphabetical | by country | by sector/industry)

(...read more...)
Company Name Country GICS© Industry
ABN Amro Holding NV Netherlands Financials
Accor France Consumer Discretionary
Adecco SA Switzerland Consumer Discretionary
Adidas Salomon Agency Germany Consumer Discretionary
Advanced Micro Devices United States Information Technology
Agilent Technologies Inc United States Consumer Discretionary
Air France-KLM France Industrials
Alcan Inc Canada Materials
Alcoa Inc United States Materials
American International Group Inc United States Financials
Atlas Copco AB Sweden Industrials
BASF AG Germany Industrials
Baxter International Inc United States Health Care
Benesse Corporation Japan Consumer Discretionary
British Airways PLC United Kingdom Industrials
British Land Company PLC United Kingdom Financials
British Sky Broadcasting Group PLC United Kingdom Consumer Discretionary
BT Group PLC United Kingdom Telecommunication Services
Cable & Wireless PLC United Kingdom Telecommunication Services
Centrica PLC United Kingdom Utilities
Coca Cola Company United States Consumer Staples
Daikin Industries Limited Japan Industrials
Daiwa Securities Group Inc Japan Financials
Denso Corp. Japan Consumer Discretionary
Dexia Belgium Financials
Diageo PLC United Kingdom Consumer Staples
East Japan Railway Company Japan Industrials
Eastman Kodak Company United States Consumer Discretionary
Electrocomponents PLC United Kingdom Consumer Discretionary
Enbridge Inc Canada Utilities
FPL Group Inc United States Utilities
Fresenius Medical Care AG Germany Health Care
Gamesa Corp. Technologica Spain Industrials
General Electric Company United States Industrials
Genzyme Corp. United States Health Care
Goldman Sachs Group Inc United States Financials
Google Inc United States Information Technology
Groupe Danone France Consumer Staples
Grupo Ferrovial SA Spain Industrials
Hbos PLC United Kingdom Financials
Henkel AG Germany Consumer Discretionary
Hewlett-Packard Company United States Information Technology
Holmen AB Sweden Materials
HSBC Holdings PLC United Kingdom Financials
Iberdrola SA Spain Utilities
Inditex SA Spain Consumer Discretionary
Indra Sistemas SA Spain Information Technology
ING Groep NV Netherlands Financials
Insurance Australia Group Australia Financials
Intel Corp. United States Information Technology
Investa Property Group Australia Financials
Johnson Matthey PLC United Kingdom Materials
JP Morgan Chase & Company United States Financials
Kesko Corp. Finland Consumer Staples
Kingfisher PLC United Kingdom Consumer Discretionary
Kuraray Company Limited Japan Industrials
Lafarge France Industrials
Land Securities PLC United Kingdom Financials
Marks & Spencer Group PLC United Kingdom Consumer Discretionary
Mayr-Melnhof Karton AG Austria Industrials
Mitsubishi Heavy Industries Limited Japan Industrials
Neste Oil Corporation Finland Energy
Nike Inc United States Consumer Discretionary
Nippon Yusen KK Japan Industrials
Nokia Corporation Finland Telecommunication Services
Nomura Holdings Inc Japan Financials
Novo Nordisk A/S Denmark Health Care
Novozymes A/S Denmark Industrials
NTT Docomo Inc Japan Telecommunication Services
Pagesjaunes France Consumer Discretionary
Pearson PLC United Kingdom Consumer Discretionary
Philips Electronics KON Netherlands Consumer Discretionary
Pinnacle West Capital Corp. United States Utilities
Ricoh Company Limited Japan Consumer Discretionary
Roche Holdings Limited Switzerland Health Care
Royal Bank Of Canada Canada Financials
Royal Dutch Shell PLC United Kingdom Energy
Sainsbury (J) PLC United Kingdom Consumer Staples
SAP AG Germany Information Technology
SCA AB Sweden Materials
Scania AB Sweden Industrials
Schlumberger Limited Netherlands Antilles Energy
Scottish & Southern Energy PLC United Kingdom Utilities
Severn Trent PLC United Kingdom Consumer Discretionary
Smith & Nephew PLC United Kingdom Health Care
Storebrand ASA Norway Financials
Sun Life Financial Inc Canada Financials
Swiss Reinsurance Company Switzerland Financials
Toppan Printing Company Limited Japan Industrials
Toyota Motor Corp. Japan Consumer Discretionary
Transcanada Corp. Canada Utilities
Unibail Holding SA France Financials
Unilever PLC United Kingdom Consumer Staples
United Technologies Corp. United States Industrials
Vestas Windsystems A/S Denmark Industrials
Walt Disney
[email this story] Posted by Robert Ouellette on 01/24 Comment Here (0)
World Economic Forum Launches Today: Toby Heaps Is There

imageThe World Economic Forum launches today in Davos, Switzerland and Corporate Knights editor Toby Heaps is there along with our publisher, Karen Kun. Follow Corporate Knights Forum as Toby posts his journal on this year’s proceedings. Global warming is a major topic at this year’s conference:

With 17 sessions on climate change, this year’s Annual Meeting will be one of the “greenest” ever at Davos. Dominic Waughray, Head of Environmental Initiatives at the Forum, says “We are getting huge demand from our members to place climate change and issues of environmental security at the very heart of the programme of the World Economic Forum. The companies represented at the Annual Meeting have a combined turnover of about US$ 10 trillion—nearly a quarter of global GDP—so catalysing their deeper engagement in this issue can only be a good thing for all of us.”

What is the World Economic Forum? Here is the Wikipedia’s introduction:

According to its supporters, the World Economic Forum is an ideal place for dialogue and debate regarding the major social and economic problems of the planet, since representatives of both the most powerful economic organisations and the most powerful political organisations are present, since intellectuals also participate, and since there is a generally informal atmosphere encouraging wide-ranging debate. Journalists have access to every session at the Annual Meeting in Davos and the majority of sessions are webcast live so that the debates can be open to a wider public. In all about 600 journalists from print, radio and TV take part in the meeting. Whilst business and political leaders make up the majority of participants, NGO leaders from groups such as Amnesty International, Transparency International, Oxfam and various UN organisations attend, as well as trades union leaders and religious leaders.

Here is a video about last year’s conference.

[email this story] Posted by Robert Ouellette on 01/24 Comment Here (0)
01 23
What Canadians Really Think About The Environment

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Receding glaciers like this Baffin Island piedmont are evidence that the world’s climate is changing—Canadians are worried.

Angus Reid, the polling company, announced today that the issue most concerning Canadians is the environment. Well, tell us something we didn’t know. The main stream press has so many stories about sustainability these days that the venerable Canadian news institution, The Globe and Mail, should rename itself, “The Global Warming Report.” Take a look at today’s paper and count the environment related stories. See what I mean?

Getting back to the Angus Reid story—today they made public this research: 19% of us are concerned with health care while 35% think the environment is our most important concern. Ten years ago the environment would not have even made the top ten let alone number one. Here are the numbers:

The Environment

35%

Health Care

19%

Tax Relief

10%

Poverty

7%

Crime

6%

The Economy

6%


Maybe these polling results are caused by quantifiable data like this:

image

Or maybe our concern is the result of these stories kindly made available by http://www.sourcewatch.org:

[email this story] Posted by Robert Ouellette on 01/23 Comment Here (0)
01 22
The End Of Global Warming Denial?

image

We have a pop quiz for all our green news aware readers: What do chemical giant DuPont, aluminum producer Alcan, heavy-machinery company Caterpillar, and and BP’s U.S. subsidiary all have in common?  . . .

If you said they all pay “experts” to deny that global warming exists you’d be wrong - at least for this question. Want to try again?

O.K., O.K., you’re never going to get this. Those four giant companies are part of a new group called the “United States Climate Action Partnership (USCAP).” Their plan is to reduce greenhouse gasses by 10-30 percent over the next fifteen years.

Now, as startling and perhaps unexpected as that is what is really remarkable about the news is that they are urging U.S. President George W. Bush—you know, the guy who systematically purged the Federal Government of its pro-environment voices—to do something about global warming. And they are doing it on the eve of the President Bush’s “State of the Nation” address. If your jaw just hit the floor we can wait a minute while you compose yourself. (Wait, if Stephen Harper can have a green epiphany then maybe it is not that surprising.)

What is even more unexpected is that global warming denier Exxon Corporation is cutting back its funding for anti-global warming propaganda. At least according to the Independent Newspaper:

The age of global warming denial, meanwhile, also appears to be drawing to a close. Exxon Mobil, the world’s largest oil company, has cut its funding to groups who argue global warming is a hoax, and is now working to develop strategies it can accept for emissions reduction.

That’s a huge change from just a few months ago, when Exxon Mobil’s chief executive, Lee Raymond, arguably the world’s most prominent global warming sceptic, was still at the helm, and the Senate Energy Committee was headed by the Oklahoma Republican James Inhofe, who made it his business to dismiss scientific opinion on climate change as a conspiracy.

Humour aside for a moment, these kinds of bureaucratic organizations will hold corporations to their promise of a sustainable future. In fact, the ISO system probably has done more to entrench the idea of sustainability in manufacturing than any thousand green lectures on the future of the planet. That’s just the way engineering-driven companies work. So, let’s applaud this move on the part of big companies and do our best to keep this momentum going.

Here is the USCAP mission statement from their recent press release:

Our goal is to help our nation create public policy that would act aggressively and sustainably to slow, stop and reverse the growth of greenhouse gas (GHG) emissions.

Toward this end, USCAP urges lawmakers to enact a policy framework for mandatory reductions of GHG emissions from major emitting sectors, including large stationary sources, transportation, and energy use in commercial and residential buildings. The cornerstone of this approach would be a cap-and-trade program. The environmental goal is to reduce global atmospheric GHG concentrations to a level that minimizes large-scale adverse impacts to humans and the natural environment. The group recommends Congress provide leadership and establish short- and mid-term emission reduction targets; a national program to accelerate technology research, development and deployment; and approaches to encourage action by other countries, including those in the developing world, as ultimately the solution must be global.

These are complicated problems. There must be a reasoned and serious debate about the solutions. But debate cannot substitute for action. We hope that the consensus we have reached through our unique partnership provides further impetus toward the creation of sensible and effective policies to (...read more...)

[email this story] Posted by Robert Ouellette on 01/22 Comment Here (1)
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