Listen: Making Money Off of Green Debt: Cory Morningstar Finds Corporate Wolves Behind Environmental Sheep

Ghion Journal

October 4, 2019

By Stephen Boni

 

 

Building through the privatization-friendly Reagan-Bush era of the 1980s, ramping up significantly with Bill Clinton’s signing of the North American Free Trade Agreement (NAFTA) in the 1990s, and solidified through the de facto repeal of the post-Great Depression separation between investment and commercial banks at the end of Clinton’s scandal-plagued final term in office at the turn of the millenium, the United States went through a very noticeable shift in how its economy functioned. Even people who didn’t pay attention to such things could feel it.

While the fundamentals of large-scale state capitalism remained—in which the U.S. government used debt and taxpayer dollars to provide the corporate sector with expensive research and development (the internet, for example), and offered crucial patent protection, favorable interest rates, extra cash in the form of subsidies, a wonderfully loophole-ridden tax code, near nonexistent enforcement of antitrust and environmental law, suppression of trade unions, and the stacking of government jobs and judicial appointments with pro-corporate professionals—the actual physical manifestations of the U.S. economy that those structures support were abandoned in ways they never had been before.

No longer did large investment firms or the stock market spend their time rewarding companies that invested in their own development, equipment, channels of distribution, growth and productivity of their workforces, etc. NAFTA, with its incentive to move jobs to other countries (particularly Mexico, which has even fewer environmental protections and drastically lower labor costs), made much of that boring, analytical work unnecessary.

So what was the newly unleashed finance sector of the economy supposed to make real money off of? Sure, they could preside over the mammoth corporate mergers and acquisitions that Reagan had freed up. That brought in some cash. The newly released internet offered speculative benefits as well. But the real money turned out to be, ironically, in the absence of money. It turned out to be in debt. Corporate debt, which could be packaged up into securities and sold to investors, but even more, the debt (mostly mortgage-related) that regular citizens were racking up to maintain their lifestyles in a less welcoming economy. Now that….oh wow, the transmogrification of that shaky debt into securities was the true windfall.

All of this fiddling around with debt was the hallmark of an economy that now focused much of its energy on finance and imaginary “products” that had no real physical presence in the real economy. We all know what came of that in 2008. One of the best explainers of how and why our economy—and indeed the world economy—blew apart was Matt Taibbi who, in a colloquial and hilariously sarcastic series of articles in Rolling Stone, famously described the investment bank Goldman Sachs as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

The Next Financial Frontier

All of this is old hat by now, right? Nothing about this current formation of our economy has really changed in the decade following the crash of 2008. Obama gave our money to the debt-ridden banks; a shit-ton of people lost their jobs and their homes; local tax revenues dried up; and the propped up and bloated finance sector simply found a new way to profit off citizen debt by creating securities out of student loan and car loan debt. Capitalism, in its current American form, could only really make money, easy money, fast money (for an ever decreasing slice of the population) out of made-up financial illusions.

Even if you subtract the recent and growing social unrest—seen through the brief flash of the quickly beaten down and co-opted Occupy and Black Lives Matter movements, the proliferation of white nationalist and xenophobic groups, and the explosion of voter political disobedience in the forms of the 2016 Sanders and Trump campaigns—American capitalism has clearly been running into a dead end. Right now, even the biggest fans of our current economy in the financial world are anticipating a train wreck in which the latest debt bubble, which also includes corporate debt, will explode, leaving even more people in desperate trouble as a result.

This is the context that Cory Morningstar is operating in with Act III of her multi-part series called “The Manufacturing of Greta Thunberg. For Consent: The Most Inconvenient Truth. Capitalism is in Danger of Falling Apart.”

You can listen to the piece here and I believe you can learn a lot from it.

And you can hear Acts I & II of the series through the Words of Others podcast.

As Cory documents through the various sections of her article—particularly in her exploration of the investor-backed and nominally African solar power provider M-Kopa—the goal of the Western corporate elites who are operating in the background of “climate strike” activists and the organizations with which they’re affiliated is not to find a way out of a dead ending capitalism. It is not to engineer a low-carbon, less consumptive, less polluted, more equal world. Not at all. They’re trying to engineer what is essentially a fantasy—a slightly less carbon producing, still consumptive, slightly less polluted, equally unequal world that maintains the current position of the elite capitalist class (a class they all belong to).

To make that happen, it’s all about inflating a new financial bubble. As Cory explores, using a variety of primary source material, if the debt of corporations and regular citizens could be turned into financial securities and sold as investments to hedge funds, pension funds and other institutions, then why not create a new form of debt related to greening the economy? And why not do it on the backs of the poor and the non-white? And why not prove the investment potential of that debt so it can be similarly securitized and sold by major financial firms? Capitalism rescued! At least for a little while longer.

This is what Al Gore and his cohorts are trying to unlock. This is their mission. And guiding inspirational movements led by relatable teenagers such as Greta Thunberg is how they gain the critical mass among the general population they need to grease the wheels of government and industry and make their banal dream a reality.

It’s this insight that make’s Morningstar’s series so important. She is trying to help you see the wolves and their sharp smiles peeking out from behind those cuddly lambs you want to help and support.

As always, thanks for reading and thanks for listening.

 

[Stephen Boni is both Ghion Journal’s current editor and a contributing writer. His main interest is in analyzing the workings of empire and exploring ways to dismantle and replace systems of oppression. A conflicted New Englander with an affinity for people, music and avoiding isms, he lives in Oakland, California with his wife and young daughter.]

The Manufacturing of Greta Thunberg – for Consent: The Most Inconvenient Truth: “Capitalism is in Danger of Falling Apart” [ACT III]

January 28, 2019

By Cory Morningstar

 

This is ACT III of the six-part series: The Manufacturing of Greta Thunberg – for Consent: The Political Economy of the Non-Profit Industrial Complex

 

In ACT I of this new body of research I opened the dialogue with the observations of artist Hiroyuki Hamada:

 

“What’s infuriating about manipulations by the Non Profit Industrial Complex is that they harvest the goodwill of the people, especially young people. They target those who were not given the skills and knowledge to truly think for themselves by institutions which are designed to serve the ruling class. Capitalism operates systematically and structurally like a cage to raise domesticated animals. Those organizations and their projects which operate under false slogans of humanity in order to prop up the hierarchy of money and violence are fast becoming some of the most crucial elements of the invisible cage of corporatism, colonialism and militarism.”

 

The Manufacturing of Greta Thunberg – for Consent series has been written in two volumes.

[Volume I: ACT I • ACT II • ACT III • ACT IV • ACT V • ACT VI] [Addenda: I] [Book form]

[Volume II: An Object Lesson In Spectacle • ACT I • ACT II • ACT III • ACT IV • ACT V • ACT VI] [ACTS VIII & IX forthcoming]

• A 100 Trillion Dollar Storytelling Campaign [A Short Story] [Oct 2 2019]

• The Global Climate Strikes: No, this was not co-optation. This was and is PR. A brief timeline [Oct 6 2019]

 

Volume I:

In ACT I, I disclosed that Greta Thunberg, the current child prodigy and face of the youth movement to combat climate change, served as special youth advisor and trustee to the foundation established by “We Don’t Have Time”, a burgeoning mainstream tech start-up. I then explored the ambitions behind the tech company We Don’t Have Time.

In ACT II, I illustrated how today’s youth are the sacrificial lambs for the ruling elite. Also in this act I introduced the board members and advisors to “We Don’t Have Time.” I explored the leadership in the nascent We Don’t Have Time and the partnerships between the well established corporate environmental entities: Al Gore’s Climate Reality Project, 350.org, Avaaz, Global Utmaning (Global Challenge), the World Bank, and the World Economic Forum (WEF).

In ACT III, I deconstruct how Al Gore and the Planet’s most powerful capitalists are behind today’s manufactured youth movements and why. I explore the We Don’t Have Time/Thunberg connections to Our Revolution, the Sanders Institute, This Is Zero Hour, the Sunrise Movement and the Green New Deal. I also touch upon Thunberg’s famous family. In particular, Thunberg’s celebrity mother, Malena Ernman (WWF Environmental Hero of the Year 2017), and her August 2018 book launch. I then explore the generous media attention afforded to Thunberg in both May and April of 2018 by SvD, one of Sweden’s largest newspapers.

In ACT IV, I examine the current campaign, now unfolding, in “leading the public into emergency mode”. More importantly, I summarize who and what this mode is to serve.

In ACT V, I take a closer look at the Green New Deal. I explore Data for Progress and the targeting of female youth as a key “femographic”. I connect the primary architect and authors of the “Green New Deal” data to the World Resources Institute. From there, I walk you through the interlocking Business & Sustainable Development Commission, the Global Commission on the Economy and Climate, and the New Climate Economy – a project of the World Resources Institute. I disclose the common thread between these groups and the assignment of money to nature, represented by the Natural Capital Coalition and the non-profit industrial complex as an entity. Finally, I reveal how this has culminated in the implementation of payments for ecosystem services (the financialization and privatization of nature, global in scale) which is “expected to be adopted during the fifteenth meeting in Beijing in 2020.”

In the final act, ACT VI [Crescendo], I wrap up the series by divulging that the very foundations which have financed the climate “movement” over the past decade are the same foundations now partnered with the Climate Finance Partnership looking to unlock 100 trillion dollars from pension funds. I reveal the identities of individuals and groups at the helm of this interlocking matrix, controlling both the medium and the message. I take a step back in time to briefly demonstrate the ten years of strategic social engineering that have brought us to this very precipice. I look at the relationship between WWF, Stockholm Institute and World Resources Institute as key instruments in the creation of the financialization of nature. I also take a look at what the first public campaigns for the financialization of nature (“natural capital”) that are slowly being brought into the public realm by WWF. I reflect upon how mainstream NGOs are attempting to safeguard their influence and further manipulate the populace by going underground through Extinction Rebellion groups being organized in the US and across the world.

With the smoke now cleared, the weak and essentially non-existent demands reminiscent of the 2009 TckTckTck “demands” can now be fully understood.

Some of these topics, in addition to others, will be released and discussed in further detail as addenda built on the large volume of research. This includes stepping through the looking glass, with an exploration of what the real “Green New Deal” under the Fourth Industrial Revolution will look like. Also forthcoming is a look at the power of celebrity – and how it has become a key tool for both capital and conformity.

[*Note: This series contains information and quotes that have been translated from Swedish to English via Google Translator.]

 

 

 

A C T   T H R E E

 

Malena Ernman: WWF Environmental Hero of the Year, 2017

Greta Thunberg’s mother and father. Opera singer Malena Ernman with husband actor Svante Thunberg at the Polar Music Prize, 2012. Ernman represented Sweden in the Eurovision Song Contest in 2009. Photo: Chapman

In October, 2018, Miljö & Utveckling recognized We Don’t Have Time founder, Ingmar Rentzhog, as Sweden’s #1 Environmental Influencer of the year. [Source: The Secret Sauce of a Global Climate Movement]

Greta Thunberg, special youth advisor and trustee to the burgeoning mainstream tech start-up, We Don’t Have Time,  was recognized as the #2 influencer of the year.

The previous month, on September 1, 2018, Dagens Nyheter, Sweden’s most prominent newspaper, ran an op-ed from Global Challenge titled “The Acute Climate Crisis Requires a Broad Political Gathering”:

“Although much of the change required is both possible and profitable, vigorous political campaigns are essential to adjust prices, taxes and regulations so that the transition to a sustainable society becomes attractive, profitable and fast. ” [Full letter in English]

“The signatories stand ready to assist in the process, in support of transforming our society and the wider world into a low-carbon economy: Mats Andersson, Vice Chairman of the Global Challenges Foundation; Erik Brandsma, CEO of Jämtkraft; Malena Ernman, Opera Singer; Antje Jackelén, Archbishop; Staffan Laestadius, Professor Emeritus KTH; Kristina Persson, former Minister of the Future; Ingmar Rentzhog, Chairman of the Global Development Challenge; Johan Rockström, Professor of Environmental Sciences SU; Daniel Sachs, CEO of Proventus; and Anders Wijkman, Chairman of the Club of Rome.”

Anders Wijkman, cited in the above signatories, is a former member of parliament, chairman of the Swedish Environment Council and the former co-president of the Club of Rome. He is also a member of Global Utmaning with a special commitment to climate issues and circular finances.

Also cited in the above signatories is Malena Ernman, mother of Greta Thunberg.

In an interview published October 15, 2018 recognizing Rentzhog as the “#1 Environmental Influencer of the year”, Miljö & Utveckling asks Rentzhog who are his greatest influences. He cites Greta Thunberg, yet does not mention the assistance his company provided Thunberg (current We Don’t Have Time special youth advisor and trustee) that would result in her campaign going international. Nor does he identify his relationship with Thunberg’s mother, Marlena Ernman, who is briefly cited in the same article.

Earlier in the year, on May 4, 2018, Rentzhog and Ernman were both featured guests at the Friday opening gala of the climate conference (“climate change day”) held from May 4-6 in Stockholm, Sweden. Greta Thunberg’s sister, Beata Ernman-Thunberg, was also featured in the program. This was a low key, modest event.

Thunberg was born into privilege and wealth.

Her mother is Swedish opera singer and celebrity Malena Ernman. Her father is actor Svante Thunberg, while her grandfather is actor and director Olof Thunberg. “Her ancestor on her father’s side is the Nobel Prize winner, Svante Arrhenius. Arrhenius was a Swedish physicist and chemist who received the Nobel Prize for Chemistry in 1903. He is known for myriad scientific contributions but it was his discovery that an increase in atmospheric carbon dioxide increases the Earth’s surface temperature. That finding led to the conclusion that human-made carbon dioxide emissions cause global warming.” [Source][On the Influence of Carbonic Acid in the Air upon the Temperature of the Ground, Svante Arrhenius, 1896]

The newspaper Svenska Dagbladet (SvD) is the third largest in circulation in Sweden. It has been generous in its coverage of both Thunberg and her mother, Ernman.

On May 30, 2018, SvD selected Thunberg as one of its winning laureates in the SvD youth writing competition for the climate.

Prior to this, on April 21, 2018 SvD gave coverage of the families book that was underway. The book “Scener ur Hjärtat” (which translates in English to “Scenes of the Heart”), about the mental health challenges within her family coupled with anxieties facing climate change, would be launched on August 24, 2018, four days following the first day of Thunberg’s school strike (August 20, 2018).

World Wildlife Fund (WWF), perhaps the most corporate and egregious NGO in the world, and a fully corporatized Greenpeace, have both been instrumental in the propping up of Thunberg with the support of other international NGOs such as 350.org. On October 11, 2017, WWF Sweden awarded Ernman with the Environmental Hero award.

“Artist Malena Ernman and biologist Rebecka Le Moine appointed Miljöhälter of the Year by WWF” [Source]

On September 17, 2018, WWF Sweden named Thunberg as one of its three nominees for the Young Environmental Hero of the year 2018.

Greenpeace Sweden: ” Malena Ernman is an incredible activist in the fight to preserve our forest for future generations. Thanks to the support of her, and all of you other amazing people who support us, we can continue to protect our outstanding planet. Do you also want to give away a Christmas present that makes a real difference?” [Source: Facebook]

Greenpeace also utilizes Ernman, and Thunberg, to promote their powerful brand. Few are aware that in 1997, Greenpeace believed that climate policy must reflect the understanding that the world must not exceed a 1ºC temperature rise. Yet not long after, in 2009, with a full ecological crisis now engulfing the planet, Greenpeace led the demand (at the United Nations Conference of the Parties in Copenhagen), for a binding agreement that would allow the Earth to further warm to a full 2ºC. The 2ºC demand, under the umbrella group TckTckTck, co-founded by Greenpeace, would undermine Bolivia, the G77 and other small island states that had fought for a binding agreement to keep global temperatures from exceeding 1ºC. The following year, 350.org – another co-founder of TckTckTck – would undermine the Indigenous peoples of Bolivia yet again at the World People’s Conference on Climate Change and the Rights of Mother Earth, held in Cochabamba, Bolivia.

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“Capitalism is in Danger of Falling Apart”

“But the more important fact remains: the mainstream debate is about how to practise capitalism, not whether we should choose between capitalism and some other system.” — Generation Investment

“We are making the case for long-term greed.” Al Gore and David Blood, in Generation’s New York City Office. August 25, 2015. (Christopher Griffith) [Source]

Utilizing the power of celebrity (an unprecedented phenomenon for the expansion of capital in the west), today’s global influencers such as Thunberg, are fully utilized to create a sense of urgency in regard to the climate crisis. The unspoken reality is, they are the very marketing strategy to save capitalism. This is a very “inconvenient truth”.

The Financial Times, July 27, 2014:

“Now is a crucial moment for investors, he continues. “The next five to 10 years is the most critical time to accelerate the transition to a low-carbon economy. We think capitalism is in danger of falling apart. As a result, the business, which has been fairly reticent in the past about the mechanics of investing sustainably, is planning to increase its visibility. ‘We need to go all in. We are going to be more aggressive because we have to.'” — Blood and Gore: “Capitalism is in Danger of Falling Apart”, Financial Times, July 27, 2014

The September 8, 2015 article “David Blood and Al Gore Want to Reach the Next Generation” published by Institutional Investor, disclosed that “the California State Teachers’ Retirement System [CalSTRS], the second-­largest public pension fund in the U.S., with $191 billion in assets, was the first American institutional investor to invest in Generation.” This was part and parcel of the divestment campaign led by Ceres partner 350.org on behalf of wall street and finance. Jack Ehnes, CEO of CalSTRS, also serves on the board of Ceres.

The same article sheds light on the driving force behind the environmental NGOs that comprise the non-profit industrial complex and interlocking directorate highway that merges the non-profit industrial complex (NPIC) with the corporate world of finance:

“I would highly recommend people who are looking to divest from carbon take a look at Generation,’ says Larry Schweiger, a longtime conservationist and a board member of the Climate Reality Project, a nonprofit founded by Gore to promote education and initiatives about climate change. Schweiger was president and CEO of the National Wildlife Federation from 2004 to 2014; under his watch the NWF became a Generation investor. ‘It was one of the best-­performing investments in our portfolio.’ he says.” — September 8, 2015, “David Blood and Al Gore Want to Reach the Next Generation,  Institutional Investor

Jumping forward, to April 29, 2018, the article, Al Gore: Sustainability is History’s Biggest Investment Opportunity, published by the Financial Times, discloses “climate wealth” is not for the many, but rather for the few:

“Generation lists large public sector investors among its clients, such as Calstrs, the $223bn Californian teachers’ pension plan, the $192bn New York State pension plan and the UK’s Environment Agency retirement fund. It also manages money for wealthy individuals but has stopped short of opening to retail investors. Almost all its assets are run in equity mandates, yet $1bn is invested in private equity.” [Source]

“I called Generation Income and found that their investment opportunities are limited.  They have two investment funds – Global Equity and Asia Equity.  The Global Equity fund is currently closed – there is a multi-year waiting list that is also currently closed.  The minimum investment is $1 million and you need to be super-accredited.  The fund seems to be targeted at institutional investors – not individuals.  The Asia Equity fund is open but the same minimum requirements apply ($1M minimum).” [Source: AIO Financial]

Generation Investment board members include eco-luminaries such as Mary Robinson, a former president of Ireland and the founder of the nonprofit, Mary Robinson Foundation. Robinson serves as president to Richard Branson’s B Team, which is managed by Purpose – the  public relations arm of Avaaz.

 

At this juncture, seeing as we are being led to believe that “sustainable investments” are the pathway to solving our planetary crisis, it might be wise to ask in what sustainable corporations Generation Investment is investing. Generation Investment has created a focus list of some 125 companies around the world in which it invests not based on how sustainable the business is, but rather, “on the quality of their business and management.” [Source]

Generation Investment’s portfolio and investments include multinational corporations with horrendous records of malfeasance, such as Amazon, Nike, Colgate, MasterCard, and the Chipotle restaurant chain with heavy investments in health and technology. And as all of these corporations are heavily invested and/or dependent on fossil fuels, how Generation Investment can justify investing in these companies is anyone’s guess.

“[Gore] and his colleagues are aiming at a small audience within the financial world that steers the flow of capital, and at the political authorities that set the rules for the financial system. ‘It turns out that in capitalism, the people with the real influence are the ones with capital!’ Gore told me during one of our talks this year. The message he hopes Generation’s record will call attention to is one the world’s investors can’t ignore: They can make more money if they change their practices in a way that will, at the same time, also reduce the environmental and social damage modern capitalism can do.” [Source]

[Tracking Al Gore’s Generation Investment Management Portfolio]

Above: The Washington D.C, 2017 People’s Climate March:  “The B Team, led by Sir Richard Branson, Sharan Burrow and former Vice President Al Gore, joined hundreds of thousands of workers, scientists, business leaders, students, parents, grandparents, children and indigenous groups demanding action on climate change by the U.S. administration.” [Source]

“It’s about an industrial transformation on a scale that we’ve never seen before.” — Sharan Burrow, general secretary, International Trade Union Confederation, B Team leader [Video]

 

“This is the biggest economic opportunity of our lifetime. This movement has left the station and is never going to stop.” — Jean Oelwang, President, Virgin Unite, Senior Partner, The B Team

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An Inconvenient Case Study: M-Kopa Solar, Africa

Source: M-Kopa website

“We think it’s possible to build a business with no trade-offs. We can benefit the environment. Our customers will be better off. And we’ll get richer. We all can win.” M-Kopa Canadian co-founder, Jesse Moore

Gore, with a net worth of approx. 350 million dollars, pays much lip service to subjects of inequality, wealth disparity and poverty.  Thus, it is useful to actually take a look at what the much hyped green energy revolution actually looks like, when played out in real life and exactly who is being served by the so-called “green revolution”.

M-Kopa Solar – “Power for Everyone” is a pay-per-use solar power provider (in the form of solar kits) created for impoverished African countries by white uber rich capitalists. The countries targeted thus far include rural Kenya, Tanzania and Uganda.

M-Kopa is the brainchild of Jesse Moore (CEO), Chad Larson and Nick Hughes —who helped develop M-Pesa, which has more than 19 million users in Kenya. [1]

From its inception, Gore’s firm has been a lead equity investor of M-Kopa. Incubated by Signal Point Partners in 2011, M-Kopa Solar raised money from investors including Richard Branson and Generation Investment Management. Launching in late 2012, the company’s initial goal of selling 1,000 solar packages a week within three years was reached within 12 months. On December 2, 2015, M-Kopa, now the world’s leading “pay-as-you-go energy provider to off-grid homes”, announced the closing of a 19 million USD financing round led by Generation Investment Management LLP. [Source]

Included on the M-Kopa board of advisors is Colin Le Duc, a founding partner of Generation Investment Management and the Co-CIO of Generation’s growth equity Climate Solutions Funds.

Other investors/lenders/partners include Shell Foundation and the Bill and Melinda Gates Foundation.

At this juncture, before we continue, it is vital to note that, in 2015, M-Kopa estimated that eighty percent of its customers lived on less than 2 USD per day.

By 2015, M-Kopa had reached over 40 million USD in revenue.

The December 2, 2015 Bloomberg article “The Solar Company Making a Profit on Poor Africans – M-Kopa Plans to be a $1 Billion Company by Selling Solar Panels to Rural Residents—and Providing Them With Credit” discloses the reality behind corporate vulturism hidden beneath a vellum of white saviour greenwash. Following the “success” of prepaid water meters for many African countries, M-Kopa charges high interest rates to the poor, with astronomically higher dividends/returns going back to the rich:

“The interest M-Kopa charges is high by U.S. or European standards. The cash price of one of its products is about 20 percent less than the installment price. But in the markets where the company’s working—so far, Kenya, Tanzania, and Uganda—the rates are competitive. Traditional microfinance companies typically charge about 20 percent interest on their loans, and in October the Kenyan government issued treasury bills that offered investors a 23 percent annual return.”

Upon first glance, a person would assume this business is the selling of solar. Yet this assumption would be a mistake. The product is finance: “About a quarter of those who pay off their first purchase move on to others, the company says.” This is colonization in a 21^st century new form. Colonization via debt made possible by the selling of Western values.

Other vultures exploiting the impoverished and vulnerable under the guise of green and “clean energy for all” include stalwart organizations, such as the Gates Foundation and Mastercard.

Unlike Western finance, where loans are usually paid in monthly installments, Africans are not given this same measure of trust. Rather, on top of a deposit, they must pay for their new loan (debt) on a daily basis. Perhaps this can be filed under “green energy racism”. Those that do not make their payments, will be punished accordingly: “Our loan officer is that SIM card in the device that can shut it off remotely,” says Chad Larson, M-Kopa’s finance director and its third co-founder. “We know that it’s important for them to keep their lights on at night, so they can be counted on to keep paying.” [Source] [“The pay-as-you-go feature is enabled by embedded machine-to-machine technology that allows M-KOPA to receive payments through the M-Pesa mobile money platform. M-KOPA can turn off the device remotely if the customer falls behind on payments. Repayments create a credit history for poor consumers that may give them access to other financial services.”][Source]

“The solar lamps are programmed in such a way that they automatically switch off whenever customers default on the daily payments. The start-up provides a solar power system that consists of a panel, three lamps, radio and mobile phone charging kit.” — M-Pesa solar dealer to blacklist defaulters with credit bureaus, February 18, 2015

Daily payments for M-Kopa are topped up through the M-Pesa service whereby Safaricom, the largest telecommunications corporation in Kenya (and the most profitable company in the East and Central African region) earns an undisclosed fee for every transaction. M-Kopa and Kenya Power, are Safaricom’s biggest pay-billing clients. [In 2015, Kenya’s Safaricom CEO Bob Collymore was the fourth African to join Richard Branson’s B Team – Ventures Africa].

“We don’t invest in solar at all,” says David Rossow, who helps manage the Gates Foundation’s $1.5 billion portfolio of program-related investments (PRIs). The foundation doesn’t even have a clean energy program. But it does have a program called Financial Services for the Poor. “We care about asset-backed lending for the last mile.” [Source]

Of further value for our white saviour entrepreneurs is the valuable metadata: ” M-Kopa’s current customer contract stipulates that the data the company amasses can be used only to improve customer experience, but the company has plans to collect listener and viewership data from its radios and televisions. ‘There’s data we can gather that practically no one else can,’ [Chad] Larson says.”

And what does the green energy revolution, wholly dependent on the further plundering of the Earth, actually bring to Africa, where more than 600 million people have zero access to electricity and more than 300 million have no clean sanitation? A solar oven? A toilet? Water filtration? Plumbing? Schools? Health clinics? Hospitals? Answer: the television.

“Make your payments in full and on time, so you can qualify for system upgrades and much more!” — M-Kopa website

And just because the business is actually finance, more than it is providing solar products, [2] that doesn’t mean there isn’t ample opportunity to rob African people blind. The price of the basic 24-inch television solar kit [2-1][2-2] when financed is an outrageous 644.88 USD. The cash price is still a whopping 546.61 USD, which is an exorbitant sum for people who exist on $2 (USD) per day. Of course, this price only remains so if the daily payments are made each and every day, ensuring no additional interest or penalties accumulate on top of the original loan amount.

The gross exploitation here is beyond the pale. Consider a 30W solar package comparable to the M-Kopa package above can be purchased retail for 157.99 USD on Amazon. Likewise, the price of a basic 24-inch LED television is often advertised in the United States and Canada for under 100.00 USD/CND. Many of the items sold in the packages, [2-3], can be found in the proliferating Western “dollar” stores for $1.00 (USD) each.

 

Photo: M-Kopa

One might wonder what happens when the loans outlive the outsourced products with short-lived warranties – a two-year warranty on the 24-inch television and a one-year warranty on accessories.

Between bombing campaigns on African countries, former US president Barrack Obama found time to visit the M-Kopa solar corporation. “US President Barack Obama talks to June Muli, M-Kopa’s head of customer care, during the Global Entrepreneurship Summit in Nairobi in July 2015. Photo: M-Kopa.” [Source: Forbes]

In February 2015, M-Kopa announced its plan to have their customers, who defaulted on their loans, blacklisted with credit bureaus:

“M-Pesa-linked solar dealer, M-Kopa, will from April begin sharing information on loan defaulters with credit reference bureaus to arrest the rising number of non-payers. The firm has issued a notice saying it plans to share information on how customers pay for their M-Kopa solar kits, in a move that will see defaulters blacklisted by lenders. M-Kopa now joins other utility providers such as Kenya Power and water service boards which have taken to credit reference bureaus to list those who default on paying their bills.” [Source]

Credit and the perpetual debt that ensues is not the only aspect of the American dream that multinational corporations are bringing to the Global South.

To be clear, it’s not “sustainable economies” that our corporate overlords pursue. A capitalism that is in trouble, must seek out – in order to save itself, new markets:

“The Gates Foundation’s team saw in M-KOPA an opportunity to demonstrate that mobile financial services could help businesses get more such valuable products into the hands of a new market of eager consumers: poor people.” [Source]

“The key was helping M-KOPA turn its customer accounts into bankable collateral. Other investors were taking equity positions in the startup. The Gates Foundation instead made a $5 million loan, alongside the Commercial Bank of Africa. The thesis: if M-KOPA could successfully pay back the loan, local commercial banks would see the payments from pay-as-you-go financing schemes as a reliable revenue stream. That would create a new lendable asset class.” — Banking on the Poor, summer, 2016, Stanford Social Innovation Review

Here we must look at the reality behind the “green jobs” – that M-Kopa created – a pivotal selling feature of the so-called “green economy”, new green deal, sustainable development / global goals, and a myriad of other holistic sounding language that mask reality.

What is rarely mentioned, if ever, is the fact that the M-Kopa solar panels, televisions, etc. are not made locally, rather, they are “sourced from overseas markets.” (China) Although the company has suggested that solar panels may be made locally over the next few years, (likely due to the growing animosity from Kenyans), the following information will demonstrate that this will only be the case if Kenyans can be exploited more so than Chinese.

 

In the March 19, 2018 article, Solar Firm M-Kopa Lays off 450 Staff to Cut Costs, published by Business Daily Africa, the reason for doing so was disclosed in no uncertain terms:

“Kenya’s mobile phone-based solar kit reseller M-Kopa Solar fired 450 workers in its subsidiaries in four countries to ease operational costs and boost profitability.

 

M-Kopa co-founder and CEO Jesse Moore said the firm was in a better position to meet its targets and expand solar connections to the next one million customers in Kenya, Uganda and Tanzania offices.

 

‘This was done to reduce fixed costs and keep us on the path to profitability which resulted in job reductions across offices in Kenya, Uganda, Tanzania and UK, reducing our global headcount by 18 per cent,’ he said.”

An article published by Quartz Africa four days prior, on March 15, 2018, was even more to the point:

“M-Kopa, the Kenyan pay-per-use solar power provider, is downsizing in a bid to improve its competitiveness, ensure long-term sustainability, and increase return for investors.”

This is worth emphasizing. To be clear – this is a profitable increase for investors, with net-worths of millions of dollars – made at the expense of firing workers making approx. $2.00 USD per day.

March 15, 2018: M-KOPA secures 100million Ksh from CDC, FinDev Canada: CIO East Africa (L-R) Jesse Moore, Co-Founder and CEO, M-KOPA and Paul Lamontagne, Managing Director of FinDev Canada during a customer site visit in Ngong.

Immediately following the sacking of African M-Kopa employees – along with outsourcing – Generation Investment put up more funding. The  March 21, 2018, article “M-Kopa Solar Receives $10 Million Investment After Sacking 150 Employees” published by the Kenyan Wall Street, disclosed the following:

“The investment comes after the company completed a restructuring exercise that saw staff count reduce by 18% from 1000 to 850 across East Africa. As we reported last week, about 78 developers were fired and their work has now been outsourced to a foreign company called Applicita that is owned by the company’s new CTO.

 

According to the CEO Jesse Moore, the restructuring process has been driven by the need to increase its competitiveness, enhance long-term sustainability, and boost investors’ returns.

 

The FinDev investment was led by CDC Group, an investor that had formerly pumped $7 million into the company, and includes follow-on investments by Generation Investment Management and LGT Venture Philanthropy. The two firms are current M-Kopa shareholders.”

The white colonization that continues to proliferate was not lost on Kenyan Wall Street which noted:

“… the company continues to raise eyebrows over its status as a Kenyan startup since its senior management is mostly composed of foreigners. What’s more, the matter of sacking local employees to outsource its operations to a foreign company will not go forgotten.”

+++

“The Gathering” & Nurturing of Foundation Funded Pragmatism

As disclosed in ACT I of this series, the very first people tagged in the initial Thunberg school strike tweet by We Don’t Have Time founder, Ingmar Rentzhog, were the following five Twitter users: Greta Thunberg, This Is Zero Hour, Jamie Margolin, the teenage founder of This Is Zero Hour, Al Gore’s Climate Reality Project and the People’s Climate Strike Twitter account (in the identical font and aesthetics as 350.org).

The first tweets from any given NGO Twitter accounts are important as they often reveal exactly for what purpose/action the account was created for. In this particular instance, the very first tweet from the People’s Climate Strike account contained the hashtag #floodthesystem (July 24, 2015). This hashtag was devised to promote the action named Flood Wall Street, which took place on September 28, 2015, leading up to the second People’s Climate March on November 29, 2015. In 2015, the first to start using the #floodthesystem hashtag were This Changes Everything (NGO of Naomi Klein, 350.org board member), May 6, 2015; OccuWorld, May 12, 2015 (“something big is coming this fall”), retweeted by Rising Tide North America, Sharon Vardatira, Meridian Consulting, May 13, 2015, and Occupy Wall Street, May 20, 2015.

The strategy behind devising different social media accounts affiliated with hashtags, campaigns and NGO manufactured movements, is one that will catch fire. Such is the case with the Climate Strike Twitter account (Climate Strike! – Global Climate Convergence) that was largely abandoned by 2017, and #EarthStrike, which largely failed to catch fire (thus far), to this very recent climate strike – as a hashtag – that has struck gold with the public psyche.

The “one 15 year old girl” tweet was then re-tweeted by Paola Fiore, founder and CEO of ETICAMBIENTE® Sustainability Management & Communications Consulting. Fiore is also the National Coordinator for Italy for The Climate Reality Project Europe. [1] Affiliations, memberships and partnerships of Fiore’s firm include, but are not limited to, the Association for Coaching, Eco Community, United Planet Faith & Science Initiative (Archbishop Desmond Tutu is a founding member as is Dr. Rajendra Pachauri), 2degrees (funded by the European Commission), and the International Coach Federation. ETICAMBIENTE® holds membership with both The Climate Reality Project, and it’s client, the International Society of Sustainability Professionals.

The first “follows”‘ selected from any given NGO Twitter account are also important as they often reveal who created the account – or those closest affiliated with the project. In this instance, the first two follows for the People’s Climate Strike Twitter account (created June 2015) are Cheri  Honkala and the Poor People’s Economic Human Rights Campaign founded by Honkala. Honkala was the “Our Revolution” endorsed candidate for Pensylvania State Representative (#WeAreThe197th) in 2017.

With the formation of board announced on August 29, 2016, the 2018 Our Revolution winning candidates included Bernie Sanders and Alexandria Ocasio-Cortez. On September 18, 2018 Our Revolution (OR) and the Progressive Democrats of America (PDA) announced a formal partnership established by both of the organizations national boards.  “PDA  is a grassroots political action committee, founded in 2004 to transform the Democratic Party and U.S. politics by electing progressives to federal office.” The PDA National Advisory Board includes members of US Congress, documentary film maker Michael Moore, commentator Thom Hartmann, Medea Benjamin of Code Pink and others of high liberal status.[5]

Recently, a new institute was launched which is partnered with Our Revolution: The Sanders Institute (“Our Mission: To Revitalize Democracy”). The inaugural conference (The Sanders Institute Gathering) took place in Burlington, Vermont (US) from November 29 – December 1, 2018. The invite only event  included the crème de la crème of the liberal political establishment including; Bernie Sanders who delivered the keynote, 350.org board member Naomi Klein and 350.org founder Bill McKibben ( Sanders Institute fellow) who both spoke on the New Green Deal,  Jeffrey Sachs (Sanders Institute fellow), Cornel West (Sanders Institute fellow) New York mayor Bill de Blasio, Nina Turner (Ohio state senator, president of Our Revolution), Ben Cohen (Ben & Jerry’s), and U.S. representative Tulsi Gabbard (Sanders Institute fellow) [Full list]

The green bourgeoisie rubbed elbows with “celebrity activists” including Susan Sarandon, John Cusack, Danny Glover and Harry Belafonte (Glover and Belafonte are both Sanders Institute fellows). WCAX News reported that the only debate that night was whether or not media would be allowed into the event. Ultimately the media was given access to the event, yet had to adhere to conditions of who they were, and who not allowed to record. (So much for freedom of the press.)

Participants spoke passionately about Indigenous rights, racism, etc. at the invite only event of predominantly white rich saviours who are presented as the leaders of our only salvation. In reality, they are only trying to salvage a system (via reforms) in which they are flourishing. Another inconvenient truth at odds with the gathering, are the promotional videos produced for the institute, which deliberately strive to give the pretense of politically correct diversity and inclusion.

July 20, 2018: Zero Hour’s Jamie Margolin is to the left of Bernie Sanders (centre). Xiuhtezcatl Martinez is in the back row, far right. “Organizers with Zero Hour meet with Sen. Bernie Sanders during their lobbying day Thursday.” Photo: Courtesy of Zero Hour [Source]

As previously highlighted, Zero Hour is one of the five Twitter accounts tagged in the first Thunberg school strike tweet. Partners of This Is Zero Hour include; We Don’t Have Time, 350.org, The Climate Reality Project, the Sierra Club, Power Shift, the Sunrise Movement and many other NGOs that garner much power and influence within the non-profit industrial complex.

September 20, 2018, Twitter: “Thank you Vice President @algore for your support & endorsement of the #ThisIsZeroHour movement”

January 4, 2019, Twitter

Other Zero Hour partners include Powershift, iMatterYouth, CareBoutClimate, ClimateSign, Sierra Club, 350.org and Citizens Climate.

In this December 10, 2018 tweet (9:35AM), ten Twitter accounts were tagged; 350.org, We Don’t Have Time, the Sunrise Movement, Teen Vogue, Sierra Club, Greenpeace, Women’s March, Our Children’s Trust, Zero Hour, and March for Our Lives.

Activism & Corporatism Working Hand in Hand

The Climate Group,  is a co-founder of We Mean Business – a coalition of organizations working with thousands of the world’s most powerful corporations and investors. [6]

Perhaps the most noteworthy online exchange were the “words of encouragement” extended via Twitter by The Climate Group [6] to Zero Hour for leading the Youth Climate March in July, 2018. Also of significance were the hashtags used in The Climate Group tweets: #WeDontHaveTime and #FrontlineYouth. This effectively illuminates the strategy and the key players behind the “climate movement” – where the NGOs, their funders, and the corporate entities are all on the same team.

This is not kindness. This is exquisite, albeit callous strategy.

Incubated by the Rockefeller Brothers Fund as an in-house project that later evolved into a free-standing institution, The Climate Group is a co-founder of We Mean Business – “a coalition of organizations working with thousands of the world’s most influential businesses and investors.” The founding partners of We Mean Business are Business for Social Responsibility (BSR) (full membership and associate members list), CDP (formerly the Carbon Disclosure Project), Ceres, The B Team, The Climate Group, The Prince of Wales’s Corporate Leaders Group (CLG) and World Business Council for Sustainable Development (WBCSD). Together, these groups represent the most powerful – and ruthless – corporations on the planet, salivating to unleash 100 trillion dollars for the fourth industrial revolution.

As I will demonstrate in the next segment of this series, the “frontline youth” energy is strategically being mobilized by a highly organized and sophisticated climate campaign. This same energy is being captured, then channeled back to save, strengthen and expand, the capitalist, hegemonic system that promises to destroy the future for these very same youth. One could call this a circular death economy. It takes much skill and coordination to “herd cats” [7] – to their own slaughter.

 

 

End Notes:

[1] M-Pesa is a mobile phone-based money transfer, financing and microfinancing service. It was launched in 2007 by Vodafone for Safaricom and Vodacom (the largest mobile network operators in Kenya and Tanzania it has expanded to Afghanistan, South Africa, India, Romania, and Albania.) In Kenya, M-Pesa is being utilized to impose a debt ideology/familiarity that reflects western debt ideology.

[2] The company M-KOPA offers the following three(3) product packages:

[2-1] The M-KOPA 5 Solar Home System can be purchased with a deposit of $2,999.00 Ksh. ($29.75 USD), plus 420 daily payments of $50.00 Ksh($0.50 USD). This total payment, including the deposit, is $23,999.00 Ksh. ($238.03 USD). The cash purchase price with no financing is  $18,999.00 Ksh. ($188.44 USD). [Accessed January 27, 2019]

The “M-KOPA 5 Solar Home System” includes one 8W solar panel, one rechargeable radio, one M-KOPA 5 control unit with a lithium battery, four 1.2W LED bulbs, one 5-in-1 phone charge cable, one custom charge cable, and one rechargeable LED torch.

[3-2]  The M-KOPA 600 requires a deposit of $5,999.00 UGX. ($59.50 USD), plus 590 daily payments of $100.00 Ksh($0.99 USD). The total payment, including the deposit, is $64,999.00 Ksh. ($644.68 USD). The cash purchase price with no financing is  $ 1,999,000.00 Ksh. ($546.61 USD).” [Accessed January 27, 2019]

The “M-KOPA 600 (24? TV)” package includes one M-KOPA 600 control unit, one 24-inch flat screen digital TV, one 30W solar panel, one TV remote control, one TV aerial, two solar lights, one solar rechargeable LED torch, one solar rechargeable radio, and two phone charging cables. “Satellite Dish & CAM Card provided separately.”

[3-3]  The M-KOPA 600 w/ Zuku CAM requires a deposit of $6,999.00 UGX. ($69.42 USD), plus 590 daily payments of $135.00 Ksh($1.34 USD). The total payment, including the deposit, is $86,649.00 Ksh. ($859.42 USD). The cash purchase price with no financing is  $ 69,999.00 Ksh. ($694.27 USD).” [Accessed January 27, 2019]

[4] We create and promote innovative sustainability programs and corporate social responsibility initiatives, and offer strategic advisory services on climate change and the SDGs.

[5] The PDA National Advisory Board includes members of US Congress: Representatives Barbara Lee, Keith Ellison, Raul Grijalva, and James McGovern; as well as documentarian Michael Moore, Actress / Activist Mimi Kennedy, Rev. Dr. Rodney Sadler, Author Jim Hightower, and Radio Hosts / Authors Lila Garrett and Thom Hartmann. Activists Michael Lighty, Medea Benjamin, Steve Cobble, Kristin Cabral, Dr. Paul Song, M.D., Belen Sisa, and Professor Marjorie Cohn also serve on the PDA Advisory Board, which is chaired by the exemplary activist Donna Smith.” [Source][Full Board Accessed January 10, 2019]

[6] The Climate Group: The Rockefeller Brothers Fund also acts as an incubator for in-house projects that later evolve into free-standing institutions – a case in point being ‘The Climate Group’, launched in London in 2004.  The Climate Group coalition includes more than 50 of the world’s largest corporations and sub-national governments, including big polluters such as energy giants BP and Duke Energy, as well as several partner organizations, one being that of the big NGO Avaaz. The Climate Group are advocates unproven carbon capture and storage technology (CCS), nuclear power and biomass as crucial technologies for a low-carbon economy. The Climate Group works closely with other business lobby groups, including the International Emissions Trading Association (IETA), which works consistently to sabotage climate action. The Climate Group also works on other initiatives, one being that of the ‘Voluntary Carbon Standard’, a new global standard for voluntary offset projects. One marketing strategist company labeled the Climate Group’s campaign ‘Together’ as “the best inoculation against greenwash”. The Climate Group has operations in Australia, China, Europe, India, and North America.  It was a partner to the ‘Copenhagen Climate Council’.

[7] Forbes, September 25, 2014: Leadership Lessons from The People’s Climate March:“With that as her model of leadership it is perhaps no surprise that so many cats have been so successfully herded. But there is more. The other leadership lesson is putting project before person.” [Source]

 

[Cory Morningstar is an independent investigative journalist, writer and environmental activist, focusing on global ecological collapse and political analysis of the non-profit industrial complex. She resides in Canada. Her recent writings can be found on Wrong Kind of Green, The Art of Annihilation and Counterpunch. Her writing has also been published by Bolivia Rising and Cambio, the official newspaper of the Plurinational State of Bolivia. You can support her independent journalism via Patreon.]

Edited with Forrest Palmer, Wrong Kind of Green Collective.

 

 

 

Beautiful Delusions [McKibben’s Divestment Tour – Brought to You by Wall Street [Part XVI of an Investigative Report]

June 27, 2017

By Cory Morningstar

Part sixteen of an investigative series

 

Breakthrough Capitalism and Volans

Breakthrough Capitalism – where business is referred to as an ecosystem:

“The first thing to say is that this website is one of several that are part of our close business ecosystem. These include: Volans, Breakthrough Capitalism, The Zeronauts, SustainAbility” — John Elkington Website

“A revolution of capitalism”:

“We need a revolution of capitalism,” said Peter Bakker, former CFOI and CEO at TNT and now President Of the World Business Council for Sustainable Development.” – Volans Press Release, Breakthrough: How Business Leaders Can Create Market Revolutions, March 7, 2013

In the 2012 David Blood lecture (video),”Breakthrough Capitalism Forum – David Blood”, one notices the sponsorship in the background. At the top of the screen we can identify speakers/sponsors Jeremy Leggitt of Solar Century & Carbon Tracker, and Jennifer Morgan of WWF, to name two. [See full list of partners.]

Breakthrough Capitalism  is a key project of Volans, a driver of market-based solutions. On the growing list of Volans partnerships, one finds Shell Foundation, Dow, Generation, GRI (Global Reporting Initiative) (Ceres, UN), Tellus Mater, The B Team (A Richard Branson NGO now being operated/managed by public relations firm Purpose, sister org. of Avaaz) and many others. On the Volans Board of advisors we find none other than Robert Massie, former President and CEO of New Economics Institute. [“Our early relationships with partners and clients have critically informed our evolution; the Skoll Foundation for Social Entrepreneurship, Allianz and HP, Atkins, Bayer, F&C, Nestlé, PPR and Recyclebank.”] [Source] [Note: Jeff Skoll co-founded EBay with Pierre Omidyar.]

“As public money gets pulled out of health care and education and all of this, NGOs funded by these major financial corporations and other kinds of financial instruments move in, doing the work that missionaries used to do during colonialism—giving the impression of being charitable organizations, but actually preparing the world for the free markets of corporate capital.” — Arundhati Roy, REVEALED: The head of Omidyar Network in India had a secret second job… Helping elect Narendra Modi, May 26, 2014

Showmanship over Science and Facts

Of interest regarding the influence these men have on the environmental movement is that both Skoll (Participant Media) and his EBay co-founder/partner, Omidyar financed the film, “Merchants of Doubt” (acquired by Sony Pictures) ^[2]

To illustrate how these institutional relationships develop and explain the mainstream media representations we need to look no further than Omidyar. Omidyar’s ties to the previous Obama administration run deep ^[Source] as does his vast network within the humanitarian industry complex. Humanity United is one such example. Consider that the Omidyar Network has made more investments in India than in any other country since 2009, according to its portfolio. ^[Source] More recently, Omidyar was a key player in the 2014 coup d’état carried out against Ukrainian President Viktor Yanukovych having co-funded Ukraine “revolution” groups with USAID and National Endowment for Democracy. ^{[Source] [Source]}

The Skoll-Omdiyar film, Merchants of Doubt, which is a condensed cinematic representation of the book it is based upon (published in 2010), focuses on the web of highly financed climate change deniers. The press release states: “Filmmaker Robert Kenner lifts the curtain on a secretive group of highly charismatic, silver-tongued pundits-for-hire who present themselves in the media as scientific authorities – yet have the contrary aim of spreading maximum confusion about well-studied public threats ranging from toxic chemicals to pharmaceuticals to climate change.” Note that this same description also aptly describes those at the helm of the non-profit industrial complex (NPIC). It is of interest that at this late juncture in anthropogenic climate disruption, billionaire “philanthropists” decided to highlight the players who reap the profits by burning carbon, rather than the players who stand to make trillions under the guise of an illusory “new economy.” The same new economy both Skoll and Omdiyar stand to reap further profits and market share from. A main prerequisite of the liberal left is that an “other” must always exist. For the divestment campaign the “other” is the fossil fuel industry – the said enemy. For Western imperial states, the “other” is the “terrorist”. For this particular film, the “others” (plural) are the deniers who can shoulder all the blame. For the NPIC as a whole, it matters little, who the “other” at this moment may be, just as long as it means not looking at our own reflections in the mirror.

“Omidyar Network is a philanthropic investment firm dedicated to harnessing the power of markets to create opportunity for people to improve their lives.”– Omidyar Network, “A World of Positive Returns”, website

In the Variety September 4, 2014 film review, the author observes that “Kenner is particularly fascinated by the phenomenon of self-described “grassroots” organizations that are actually shilling for specific corporate and political interests (the Koch Brothers-funded Americans for Prosperity, the Exxon Mobile-financed Heartland Institute, etc.).” This blatantly obvious (and accurate) observation, “the phenomenon of self-described ‘grassroots’ organizations that are actually shilling for specific corporate and political interests…” is one that could easily apply to the movements manufactured by and belonging to the NPIC. The shilling in this instance for The Rockefeller Foundation, The Clinton Global Initiative, etc. In the same review, the author writes that by “[P]roviding an accessible, somewhat facile framing device, professional magician Jamy Ian Swiss describes how all sleight-of-hand (including the card trick he performs and demystifies onscreen) is predicated on the audience’s willingness to be deceived.” This same predication fits America’s self-described environmental activists like a velvet glove.

The authors of Merchants of Doubt  found that “one way to effectively remove public fear around a particular issue is to create fear elsewhere — something the tobacco industry managed by aligning itself with the flame-retardant industry, as if unprotected furniture, not cigarettes, were to blame for house fires.” This same tactic is utilized in the building of acquiescence for the “new economy”. It is not the industrialized capitalist economic system causing our environmental crisis, ecological collapse and the Sixth Great Extinction. Rather, it is the lack of technology via “clean energy” infrastructures global in scope (which in reality would/will only further industrialization, thus accelerating both greenhouse gas emissions and planetary environmental degradation).

In a final observation, the reviewer concludes that “There’s perhaps a necessary element of hypocrisy in this approach, given the film’s point that too many Americans, by and large, prefer showmanship over science.”

Above: “Showmanship over science.”

Today’s ever-devolving Western society continues to demonstrate its preference for showmanship over science, celebrity over substance, technology over nature, liberal ideology over radical ideology, human life over all other life, white skin over non-white.

Volans

 

“It’s all very well for me to say the future is environmental excellence, green consumerism, the triple bottom line or breakthrough capitalism, but the many movements and communities of which we are part deserve a deeper explanation of the thinking and experiences that brought us to these conclusions.” — John Elkington, Co-Founder of Environmental Data Services, SustainAbility and Volans

 

“We see signs of breakthrough in … Generation Investment Management CEO David Blood’s spotlighting a five key steps to sustainable capitalism, and in the alliance between Richard Branson of Virgin and former PUMA CEO Jochen Zeitz—who are building The BTeam.” — Volans Press Release, Breakthrough: How Business Leaders Can Create Market Revolutions, March 7, 2013

Partners publicly disclosed upon announcement of “The Breakthrough Capitalism” Program are listed as follows: Generation, Tellus Mater Foundation, Autodesk, HewlettPackard, The Value Web and Innovationarts.

The first “follows” chosen upon the set-up of twitter accounts are always revealing and Breakthrough’s twitter account is no exception. The first four follows are founders, co-founders, directors and the social media outreach of Volans. The fifth person chosen to follow is a partner at Generation Investment. Number six is John B Elkington? (founder and Executive Chairman of Volans and author/creator of zeronauts; a project of Volans). Seventh is Jeroen van Lawick, international consultancy for “transformative CSR” (“corporate social responsibility”) and organization development, as well as founder of Zijn Werkt!. Eighth is David Willans, marketing director at Futerra. Number nine is none other than 350.org’s Naomi Klein who was chosen ahead of number ten: Jeremy Leggett (Solarcentury, SolarAid, and Carbon tracker).

“Breakthrough Capitalism” asks the question as to how to engage the “1,100 or so companies that now control half of the world’s market capitalization.”

Whereas Volans and Generation would have us believe we should give these corporations even more power, the truth is that these very 1,100 corporations more than likely represent the first ones that should be targeted for dismantlement.

“Volans is part think-tank, part consultancy, part broker and part incubator. Based in London and Singapore, Volans works globally with entrepreneurs, businesses, investors and governments to develop and scale innovative solutions to financial, social and environmental challenges. Our Pathways to Scale program aims to identify, map and remove barriers that slow the scaling of innovative solutions to governance, economic, social and environmental challenges.” [Source]

John Elkington is the founding partner and Executive Chairman of Volans, as well as the co-founder of SustainAbility (1987) and Environmental Data Services (ENDS, 1978). He is recognized as a world authority on “corporate responsibility” and “sustainable development.” In 2004, Businessweek described him as “a dean of the corporate responsibility movement for three decades.” In 2008, The Evening Standard named Elkington “a true green business guru,” and “an evangelist for corporate social and environmental responsibility long before it was fashionable.” Of course, only those who serve to benefit from such false narratives bestow these titles and accreditations. For example, “corporate responsibility” is the strategic means to increase corporate domination via marketing.

In addition to the aforementioned credentials, Elkington is identified as a B Team “expert” on The B Team website. ^{[Full bio.]}

Elkington’s latest book utilizes/promotes Branson’s The B Team organization. The book titled Tomorrow’s Bottom Line: The B Team Playbook for Market Gamechangers, co-authored with B Team co-founder and former PUMA CEO Jochen Zeitz, was released in 2014.

Elkington has served as a juror for the first Gigaton Awards, developed by Richard Branson’s non-profit Carbon War Room – dubbed the ‘Oscars of sustainability.’ As well, he has completed a Fellowship at the Bellagio Centre awarded to him by The Rockefeller Foundation.

Elkington serves/has served on 70 boards and advisory boards. He co-chairs the United Nations Global Compact (UNGC) Breakthrough Innovation Advisory Council, chairs the Global Reporting Initiative (GRI) Technology Consortium, and is a member of the Advisory Board of the Global Commission on Business & Sustainable Development (GCBSD). He is a member of the Board of the Social Stock Exchange (SSX), and chairs its Admissions Panel. He is also a member of the Boards of organizations such as the Biomimicry Institute and The Ecological Sequestration Trust (TEST), and a member of Advisory Boards for organizations such as 2degrees Network, Aviva, The B Team, Nestlé, Tesco, Guardian Sustainable Business, and Zouk Capital (cleantech fund). ^[Source]  Elkington has also served as strategic advisor to Bayer Material Science, Gaia Energy, Instituto Ethos, One Earth Innovation, Polecat UK; senior Advisor to the Business & Human Rights Resource Centre; board member of EcoVadis, Recyclebank Sustainability Advisory Council; the Evian Group Brain Trust and the Newsweek Green Rankings Advisory Board.

Elkington’s first involvement in the corporate environmental sector was raising funds at the age of 11 for the newly formed World Wildlife Fund (WWF), where he has for many years served on the Council of Ambassadors. He has written or co-authored 17 books, including The Gene Factory: Inside the Genetic and Biotechnology Business Revolution (1985), Double Dividends? US Biotechnology and Third World Development (1986), The Green Capitalists: Industry’s Search for Environmental Excellence (with Tom Burke , 1987), and The Power of Unreasonable People: How Social Entrepreneurs Create Markets That Change the World, co-authored with Volans co-founder Pamela Hartigan (2008).

In 2005 Elkington received the “Social Capitalist of the Year” award from Fast Company, later to be awarded a 3-year, $1 million field-building grant from the Skoll Foundation for Social Entrepreneurship, at SustainAbility and Volans.

In September of 2016 Elkington launched “The Breakthrough Innovation Platform” to advance the United Nations Sustainable Development Goals (SDGs) in partnership with UN Global Compact. “The ultimate target of the SDGs is the privatization of Indigenous and public resources worldwide.” [Source]

“Aligned with the UN Global Compact’s priority of translating the new SDGs into business action, the aim of the Breakthrough Innovation Platform is to challenge and stretch prevailing business mindsets into the opportunity spaces offered by the SDGs.” — UN Global Compact and Volans Announce Strategic Partnership on Breakthrough Innovation for the Sustainable Development Goals, May 31, 2016

Beautiful Delusions | Zeronaut

Illustration by Stephanie McMillan for Wrong Kind of Green

“Zero offers a powerful key to unlocking tomorrow’s growth markets.” – Zeronaut

Zeronaut was launched in April, 2008. It was founded by John Elkington.

Sophisticated and seductive marketing which appeals to an audience comprised of privilege is of critical importance. The marketing strategist executive, set with the task of selling an illusory “new economy”, employs both market-centric and human-centric terminology, which is alluring when paired with an underlying white saviour pretext – a prerequisite to successfully gloss over and elude the true extent of capitalism’s inherent violence and destructiveness. Market-centric language is strategically enticing as it invokes a “new’ economy” avec with new profit centres, inclusive of carbon emissions credits,  carbon capture storage, and most critically, today, the financialization of nature.

It is important to note that the Zeronaut mission/philosophy/marketing scheme is beguiling: “a new breed of innovator, determined to drive problems such as carbon, waste, toxics, and poverty to zero.” Yet, such beautiful delusions can only be afforded by the privileged. Not those who are oppressed under the capitalist economic system. Not the earth herself whose natural resources are destroyed in the creation of commodities for capital. Not for those now referred to as “human capital”. Not for those murdered by empire in the race for what’s left of our planet’s rapidly declining rare Earth minerals and resources.

Those praising the Zeronaut book include (in the order that they appear) Paul Hawken, David Blood (Goldman Sachs, Generation Investment), Jochen Zeit ( The B Team co-founder/Chairman of PUMA), David Grayson, Chair and Director of the Doughty Centre for Corporate Responsibility and Peter Bakker, the President of the World Business Council for Sustainable Development.

The Zeronaut 2012 Roll of Honor list includes Bill and Melinda Gates (GMO seeds), Al Gore and David Blood (Generation Investment, environmental markets), Ban-Ki Moon (environmental markets, carbon markets, methane extraction, REDD+), James Hansen (nuclear), Paul Hawken (“natural” capitalism), Pavan Sukhdev of TEEB (The Economics of Ecosystems and Biodiversity – commodification of the commons) and many more of those in elite positions of power and influence. ^{[Full list.]}

An example of the ideology espoused by Zeronaut, is highlighted in the sample chapter formerly found on its website. The author tells the reader that the Kraft Corporation has achieved “zero waste” at 36 food plants, thus “it’s happening.”

In the Kraft Beaver Dam plant in Wisconsin (that manufactures Philadelphia Cream Cheese) Kraft built an anaerobic digester – the digester processed waste into energy that was fed into the local grid. Yet, this is hardly a solution for Kraft’s toxic waste. Rather, it is a mechanism that serves to perpetuate the production of excess waste, because the excess waste has become profitable.

Kraft plants in Cikarang and Karawang, Indonesia, where plastic packaging film creates most of the waste, found a recycler that turns the material into bags and buckets. Yet another market was found. Yet, what about the oil required to produce the film in the first place? The planet continues to be drilled and decimated. The bags and buckets which need infinite growth, to consume the infinite waste, also require infinite consumptive patterns.

Kraft plants in Fresno and San Leandro, California that make a variety of Kraft products including Cornnuts, Capri Sun and Kool-Aid (toxins in, toxins out), have collected more than 100 tons of food waste like corn skins to be used as animal feed since 2009. Yet this food, not fit for human consumption, is therefore certainly not fit for animal consumption either. Further, one can be almost certain that these corn skins are derived from genetically engineered corn, as will be the soy, sugar beet and canola. In addition, we must take into account other hazardous, chemical intensive, biodiversity destroying industrialized crops.

The deluge of half truths and misinformation propagated by the NPIC is the reason why it is necessary to analyse and define what the term “zero waste” truly means. In that regard, what is not mentioned is the mandatory mass-consumption of the product leaving the manufacturing plants and warehouses. Of no mention or consideration is the waste of energy to produce this “food” and transport this “food” that very likely has little to no true nutritional value. In fact, one could quite easily make the argument such processed foods and “edible” oils, key products/ingredients of Kraft, actually poison whole societies, inducing cancers, sickness/disease, and obesity. (In essence, products under the guise of “food” that amount to no more than toxic sludge.)

Of course reducing waste may add to Kraft’s bottom line, but even more so if they can achieve this by finding markets for their waste – which they have. In 2012, at a Kraft coffee plant in Vienna, Austria, the facility sent 250 tons of used coffee bean husks to a local biomass plant that generates heat and electricity. Yet biomass is a false solution with the waste externalized onto our health. “Biomass incineration is one of the most expensive, inefficient and polluting ways to make energy — even dirtier than coal in some ways. Forests are destroyed, the climate is cooked, crop lands are wasted, resources are destroyed and low-income communities and communities of color suffer increased health problems from this unnecessary dirty energy source that poses as renewable energy.” ^[Source]

Kraft’s direct and/or indirect support of the corporations that push monoculture and/or genetically engineered crops, is complicity to the immense social and environmental impacts destroying both communities and life of every form.

In 2012 a Kraft coffee plant in St. Petersburg cut waste sent to landfills by 90 percent by reusing coffee bean shipping bags and pallets and by sending off 15,000 tons of coffee grounds to be turned into fertilizer for farms in the area. The reusing of the bags and pellets is common sense and good practise. Yet, one must also remember this same 15,000 tons of coffee contained pesticides and chemicals which would have leached into the earth’s soil, underground aquifers, water systems, our air and inevitably, our bodies and the bodies on non-human life. This is not to mention Kraft, like all multinational food corporations, make billions on the backs of farmers. Starbucks five dollar lattes are full to the brim with the blood and sweat of the farmers that barely survive under the industrialized capitalist system. Support of corporate power dominating agriculture ensures the continuance of exploitation while furthering negative social and community impacts.

Therefore, beneath the layers of Kraft’s zero waste “feat” is little more than green washing with highly evolved and a most sophisticated marketing.

http://killercoke.org/

According to the excerpt, Coca-Cola has also achieved “zero waste”. Yet corporate media fails to report Coca-Cola distributing free “fertilizer” in India, later analyzed to be nothing more than toxic waste. Does the BPA (a known carcinogen) that lines the Coca-Cola cans not qualify as waste? How much one-time use, disposable (including recycled) packaging by Kraft and Coca-Cola alone, ends up in landfills and oceans once it leaves the processing plants? Recycling, a billion dollar energy intensive industry which also creates massive volumes of waste, is not a true solution to the real problem: that of producing items that are simply not necessities in any way shape or form. As a further concern to the environmental issue which is the human rights violations committed by this corporation, do the union leaders assassinated under Coca-Cola’s reign of terror in Columbia constitute waste – or is “human capital” nothing more than a tax write-off under the “third industrial revolution”, that being the “new economy”?

The idea that the same corporations that have brought the apocalypse to or doorstep are the same corporations who will now usher in a new green utopia is just that – a utopian fantasy.

Under an industrialized capitalist economic system, zero waste cannot and will not ever be achieved. To varying degrees, every one of these corporate entities, and the junk they produce (which are things we do not need to survive), have to go. Bare essentials in the most radical sense must be our collective goal.

Next up: Part 17

 

[Cory Morningstar is an independent investigative journalist, writer and environmental activist, focusing on global ecological collapse and political analysis of the non-profit industrial complex. She resides in Canada. Her recent writings can be found on Wrong Kind of Green, The Art of Annihilation and Counterpunch. Her writing has also been published by Bolivia Rising and Cambio, the official newspaper of the Plurinational State of Bolivia. You can support her independent journalism via Patreon.]

Edited with Forrest Palmer, Wrong Kind of Green Collective.

 

The Bankers at the Helm of the ‘Natural Capital’ Sector

January 26, 2017

by Michael Swifte

 

Let’s put a spotlight on four bankers who positioned themselves in the ‘natural capital’ sector around the time of the Global Financial Crisis (GFC). Let’s have a look at some of their networks.

The reason these bankers have positions at the intersection of big finance and the conservation sector is because of their intimate knowledge of financial instruments and what some call “financial innovation”. They follow the edict ‘measure it and you can manage it’. They are the perfect addition to decades of work – as part of the sustainable development agenda – aimed at quantifying the economic value of nature in order to exploit it as collateral to underwrite the new economy.

Banker 1

John Fullerton is a former managing director at JPMorgan, he founded the Capital Institute in 2010, in 2014 he became a member of the Club of Rome, he has written a book called Regenerative Capitalism.

“No doubt the shift in finance will require both carrots and sticks, and perhaps some clubs.” [Source]

The first of Fullerton’s key networked individuals is Gus Speth who consults to the Capital Institute, he sits on the US Advisory Board of 350.org and the New Economy Coalition board and is good buddies with the godfather of ‘ecosystem services’ Bob Costanza. He has a long history supporting sustainable development projects and has some seriously heavy hitting networks. He founded two conservation organisations with which he was actively engaged up until 2o12, both organisations continue to support ‘natural capital’ projects among other diabolical efforts.

The second networked individual is Hunter Lovins, an award winning author and environmentalist who heads up Natural Capital Solutions and is an advisor to the Capital Institute. She is a long term cheer leader for green capitalism, climate capitalism, and sustainable development.

Banker 2

Mark Tercek was a managing director at Goldman Sachs and became the CEO of The Nature Conservancy in 2008, he has written a book called Nature’s Fortune: How Business and Society Thrive by Investing in Nature.

“This reminds me of my Wall Street days. I mean, all the new markets—the high yield markets, different convertible markets, this is how they all start.” [Source]

One of Tercek’s networked individuals is conservation biologist Gretchen Daily, the person Hank Paulson sent him to meet when he accepted the leadership of The Nature Conservancy (TNC). Daily co-founded the Natural Capital Project in 2005 with the help of  WWF, TNC and the University of Minnesota.

Another prominent figure in TNC is Peter Kareiva, senior science advisor to Mark Tercek and co-founder of the Natural Capital Project, he is also the former chief scientist of TNC and its former vice president.

Taylor Ricketts is also a co-founder of the Natural Capital Project, at the time of founding he was the director of conservation science at WWF. He’s now the director of the Gund Institute for Ecological Economics which was founded by Bob Costanza.

Banker 3

Hank Paulson is the former CEO of Goldman Sachs, he was US treasury secretary during the GFC, he’s a former chair of the TNC board and the driving force behind the 2008 bail out bill. In 2011 he launched the Paulson Institute which is focussed on China, he has written a memoir called On the Brink: Inside the Race to Stop the Collapse of the Global Financial System.

Even before he was made treasury secretary by George W Bush, Paulson had an interest in conservation finance and greening big business. He was a founding partner of Al Gore and David Blood’s, Generation Investment Management which operates the “sustainable capitalism” focussed Generation Foundation. He has worked with Gus Speth’s World Resources Institute and the Natural Resources Defense Council to develop environmental policy for Goldman Sachs. In 2004 he facilitated the donation from Goldman Sachs of 680,000 acres of wilderness in southern Chile to the Wildlife Conservation Society and in 2002-04 he and his wife Wendy donated $608,000 to the League of Conservation Voters. He has also worked with the second largest conservation organisation on the planet Conservation International.

“The environment and the economy have been totally misconstrued as incompatible,”[Source]

 

“[…] It is is clear that a system of market-based conservation finance is vital to the future of environmental conservation.” [Source]

Banker 4

Pavan Sukhdev is a former managing director and head of Deutsche Bank’s Global Markets business in India, he was the study leader of the G8+5  project, he founded the Green Accounting for Indian States Project, he co-founded and chairs an NGO in India called the Conservation Action Trust, he headed up the United Nations Environment Program – Green Economy Initiative which was launched in 2008, he has written a book called  Corporation 2020: Transforming Business For Tomorrow’s World 

Sukdev’s work cuts across more than a dozen UN agencies and scores of international agencies and initiatives. Here are just some of them: IUCN, ILO, WHO, UNESCO, IPBES, WEF, IMF, OECD. Every kind of commodity and economic activity has been covered through his work.

“We use nature because she’s valuable, but we lose nature because she’s free.” [Source]

There are only a one or two degrees of separation between these bankers and the environmental movements with which we are very familiar. Looking at key networked individuals connected to the representatives of the financial elites – bankers – helps to highlight the silences and privately held pragmatic positions of many an environmental pundit. “Leaders” of our popular environmental social movements don’t want to be seen or heard supporting the privatisation of the commons, but they remain silent in the face of a growing surge towards collateralization of the earth. Perhaps they too believe that using nature to capitalise the consumer economy is preferable to the toxic derivatives that precipitated the GFC. Either way the underlying motivation – for anyone who might feel that ecosystem services thinking is useful for the earth – is the desire for the continuation of our consumer economy.

 

McKibben’s Divestment Tour – Brought to You by Wall Street [Part IX of an Investigative Report] [Mainstreaming Sustainable Capitalism]

The Art of Annihilation

April 30, 2015

Part nine of an investigative series by Cory Morningstar

Divestment Investigative Report Series [Further Reading]: Part I • Part II • Part III • Part IV • Part V • Part VI • Part VII • Part VIII • Part IX • Part X • Part XI • Part XII • Part XIII

 

“Sometimes people hold a core belief that is very strong. When they are presented with evidence that works against that belief, the new evidence cannot be accepted. It would create a feeling that is extremely uncomfortable, called cognitive dissonance. And because it is so important to protect the core belief, they will rationalize, ignore and even deny anything that doesn’t fit in with the core belief.” — Frantz Fanon, Black Skin, White Masks

 

Prologue: A Coup d’état of Nature – Led by the Non-Profit Industrial Complex

It is somewhat ironic that anti-REDD climate activists, faux green organizations (in contrast to legitimate grassroots organizations that do exist, although few and far between) and self-proclaimed environmentalists, who consider themselves progressive will speak out against the commodification of nature’s natural resources while simultaneously promoting the toothless divestment campaign promoted by the useless mainstream groups allegedly on the left. It’s ironic because the divestment campaign will result (succeed) in a colossal injection of money shifting over to the very portfolios heavily invested in, thus dependent upon, the intense commodification and privatization of Earth’s last remaining forests, (via REDD, environmental “markets” and the like). This tour de force will be executed with cunning precision under the guise of environmental stewardship and “internalizing negative externalities through appropriate pricing.” Thus, ironically (if in appearances only), the greatest surge in the ultimate corporate capture of Earth’s final remaining resources is being led, and will be accomplished, by the very environmentalists and environmental groups that claim to oppose such corporate domination and capture.

Beyond shelling out billions of tax-exempt dollars (i.e., investments) to those institutions most accommodating in the non-profit industrial complex (otherwise known as foundations), the corporations need not lift a finger to sell this pseudo green agenda to the people in the environmental movement; the feat is being carried out by a tag team comprised of the legitimate and the faux environmentalists. As the public is wholly ignorant and gullible, it almost has no comprehension of the following:

1. the magnitude of our ecological crisis
2. the root causes of the planetary crisis, or
3. the non-profit industrial complex as an instrument of hegemony.

The commodification of the commons will represent the greatest, and most cunning, coup d’état in the history of corporate dominance – an extraordinary fait accompli of unparalleled scale, with unimaginable repercussions for humanity and all life.

Further, it matters little whether or not the money is moved from direct investments in fossil fuel corporations to so-called “socially responsible investments.” The fact of the matter is that all corporations on the planet (and therefore by extension, all investments on the planet) are dependent upon and will continue to require massive amounts of fossil fuels to continue to grow and expand ad infinitum – as required by the industrialized capitalist economic system.

The windmills and solar panels serve as beautiful (marketing) imagery as a panacea for our energy issues, yet they are illusory – the fake veneer for the commodification of the commons, which is the fundamental objective of Wall Street, the very advisers of the divestment campaign.

Thus we find ourselves unwilling to acknowledge the necessity to dismantle the industrialized capitalist economic system, choosing instead to embrace an illusion designed by corporate power.

+++

 

Blood & Gore Generation: of Commodification, Privatization, and Indoctrination

“Between 2008 and 2011 the company had raised profits of nearly $218 million from institutions and wealthy investors. By 2008 Gore was able to put $35 million into hedge funds and private partnerships through the Capricorn Investment Group, a Palo Alto company founded by his Canadian billionaire buddy Jeffrey Skoll, the first president of eBay Inc.” — Forbes, November 3, 2013

 

“Civil society has a central role in accelerating the transition towards Sustainable Capitalism. NGOs must take a 360-degree approach to the process of mainstreaming Sustainable Capitalism, realising their ability to influence stakeholders in every part of the business ecosystem. NGOs must engage with investors, companies, regulators and policy makers to encourage the rapid and effective adoption of Sustainable Capitalism through campaigns, lobbying efforts and partnerships with the private sector.” — Sustainable Investment Paper, Generation, February 15, 2012

For an accurate grasp of the true objective behind a national/international marketing campaign (the Keystone Pipeline campaign is another fine example), one is wise to bypass the non-profit industrial complex (NPIC) in its entirety and go directly to researching the investment firms and corporations who are set to increase market share and reap billions in profits via such campaigns. Campaigns funded by foundations (set up by the oligarchs) serve and protect the system with well-oiled precision. Billions of dollars funnelled into the NPIC laundering machine, on which corporations would be taxed otherwise, have never been such a sound and secure investment.

Perhaps the most telling and revealing of the world the NPIC wishes us to embrace is the investment firm recommended by 350.org et al: Generation. [PDF: A Complete Guide to Reinvestment] Under the section “What types of reinvestment exist?, Mutual Funds,” the top two examples listed (four in total) are 1) Generation Investment Management Climate Solutions Fund II and 2) Generation Investment Management Credit Fund.

“We are advocates for Sustainable Capitalism…. The first, which is our principal platform for activity, is a partnership model whereby we collaborate with individuals, organizations, and institutions in our effort to accelerate the transition to a more sustainable form of capitalism. In addition, the Foundation also supports select grant-giving related to the field of Sustainable Capitalism, engagement with the local communities where we operate, and an employee gift-matching program.” — Generation Foundation

Generation is an independent, private, owner-managed partnership with offices in London and New York. The firm was co-founded in 2004 by Al Gore and David Blood. From 1985 to 1999, Blood served in various positions at Goldman Sachs Group, Inc. From 1999 to 2003, Blood served as a Co-Chief Executive Officer and Managing Director of Goldman Sachs Asset Management. Blood served as a director of Goldman Sachs International. Blood sits on many boards including his director position held at NewForests (“establishes US presence in May 2007 to capitalise on growing investment interest in environmental markets in the US”). Its investment strategies focus on forests, timberland, and environmental markets; “NewForests have a limited number of private accounts clients to develop particular project and policy expertise in reducing emissions from deforestation and degradation (REDD) in other countries.” (REDD and Biomass). Blood also holds a position as director of The Nature Conservancy, the revolving door for Goldman Sachs executives. [Blood’s full bio].

Mark Ferguson, Peter Harris, Peter Knight and Colin Mark Le Duc are also co-founders of Generation Investment. Both Ferguson and Harris held prestigious positions at Sachs. Al Gore is Co-Founder, Chairman, and Partner of The Climate Solutions Fund of which Marc Le Duk is also a co-founder.

Generation is largely an institutional investment management firm, operating at the wholesale level (major pension funds, foundations, etc). The corporatocracy and covertness behind such investing is apparent when one considers the fact that law restricts the amount of information that firms (that focus on institutional clients) can provide, to “ensure that the general public is not enticed into investing in unsuitable and overly complex products”. [1]

“Mainstreaming Sustainable Capitalism by *2020 will require independent, collaborative and voluntary action by companies, investors, government and civil society, which we hope to accelerate by advancing the discourse on the economic benefits of sustainability.” — Sustainable Investment Paper, Generation, February 15, 2012

[*David Blood: “…we say in our paper 2020, the truth is we have a view that it really needs to happen by 2015 – otherwise we are increasingly in trouble.” Breakthrough Capitalism Forum lecture, May 29, 2012]

A key area of focus is to ensure the capitalist system is kept intact; to establish the acceptable parameters of the “market revolution.” In particular, in concise language, Blood and Gore make it exceptionally clear that alternatives to the suicidal capitalist system need not, should not and will not be considered:

“Capitalism has great strengths and is fundamentally superior to any other system for organising economic activity. It is more efficient in allocating resources and in matching supply and demand. It is demonstrably effective in wealth creation. It is more congruent with higher levels of freedom and self-governance than any other system. It unlocks a higher fraction of the human potential with ubiquitous, organic incentives that reward hard work, ingenuity, and innovation. These strengths are why it is at the foundation of every successful economy.

 

“Critically, capitalism has proven itself to be adaptable and flexible enough to fit the specific needs of particular countries. Capitalism comes in many forms, from that practised in the US to the very different model that has been adopted within communist China. The causes and consequences of these variations are, of course, significant – but the more important fact remains: the mainstream debate is about how to practise capitalism not whether we should choose between capitalism and some other system.” [Emphasis added] [Source]

Generation Investment is acknowledged for its contribution in the May 2013 41-page document Institutional Pathways to Fossil-Free Investing in collaboration with Phil Aroneanu and Jamie Henn of 350.org, Bob Massie of the New Economics Institute and others interconnected within this campaign. The sponsors listed are 350.org, Responsible Endowments Coalition (REC), Sustainable Endowments Institute and Tellus Institute. [2]

“By Year Five of the simulation, the portfolio has become fossil free and its five-percent targeted reinvestment has been allocated, across a variety of asset classes, as shown in Figure 4. Half of the target (2.5 percent of the entire portfolio) can be re-allocated to sustainable, fossil-free domestic and international public equities, through existing strategies with investment managers such as Generation Investment Management, Impax Asset Management, Portfolio 21, and Trillium Asset Management, among others.” — Institutional Pathways to Fossil-Free Investing

Video: Ceres lecture featuring Bill McKibben with David Blood:

https://vimeo.com/66321774

Generation’s key action is “to accelerate mainstreaming Sustainable Capitalism.” Insight into the coming corporate capture / commodification of the commons via the global implementation of “payments for ecosystem services” (PES) is made clear under the Current Initiatives section where it is stated: “Until there are policies that establish a fair price for widely understood externalities, academics and financial professionals should strive to quantify the impact of stranded assets and analyze the subsequent implications for assessing investment opportunities.” [Emphasis added.]

The top three sectors of focus for Generation are key to how the 21^st century is being shaped: 1) Agricultural and Forestry Solutions (think genetic engineering, biomass burning, land grabs, and commodification of forests/REDD 2); Behaviour Change (think Avaaz/Purpose); 3) Bio-based Fuels, Plastics and Chemicals. (See all key sectors of focus that have been publicly disclosed.) (Note that 350.org et al are now publicly campaigning on/promoting the false solution of biofuels.)

Three such partnerships (publicly disclosed) include World Resources Institute, Natural Resource Defense Council (both represented on the Ceres board of directors), and The Climate Reality Project (formerly identified as Alliance for Climate Protection). Under Memberships and Initiatives, we find Ceres, the Ceres Investor Network on Climate Risk (INCR), Roundtable on Sustainable Palm Oil, and many others.

“We provide business-building expertise, access to Generation’s investment, corporate, NGO and sustainability networks and a long term strategic perspective and commitment to our portfolio companies.” [Source]

And the icing on the cake:

“Five percent of the profitability of the firm is allocated to The Generation Foundation, which will support global non-profit sustainability initiatives.”

Gore and Blood identify five key imperatives that “have the potential to accelerate the transition to Sustainable Capitalism”. The first imperative identified is the need to identify and incorporate risks from stranded assets.

Enter Carbon Tracker.

Carbon Tracker

Ruse: noun 1. an action intended to mislead, deceive, or trick; stratagem

Utilizing research from the Potsdam Institute [3], Carbon Tracker made the case for “unburnable carbon” in the July 2011 seminal report “Unburnable Carbon: are the world’s financial markets carrying a carbon bubble?” The report suggested that the top 100 coal and 100 oil-and-gas companies had a combined value in 2011 of $7.42 trillion, much of it based on reserves that can never be used. Such reserves are one example considered by Tracker that have the potential to become stranded assets – thereby exposing investors to risk. The tracker employs (and supplies) the so-called “carbon budget” as a measure (and apparatus) as to how much more carbon the world can continue to “safely” burn.

“The concept of ‘stranded assets‘ gained prominence last year when another report by the Carbon Tracker Initiative calculated that 60-80% of the world’s coal, oil, and gas reserves would be ‘unburnable’ if the world leaders agreed to emissions reductions to limit warming to 2°C…. In essence, any price on carbon or emissions reduction policy could cut oil demand enough to strand any number of a company’s proven reserves.” — Desmog Blog, September 13, 2014

Carbon Tracker’s second “unburnable carbon” report (Unburnable Carbon 2013: Wasted Capital and Stranded Assets (PDF) is co-authored with LSE’s (London School of Economics) Grantham Research Institute. The Institute has been financed/supported in part by the Global Green Growth Institute (GGGI) through a grant for US$2.16 million (£1.35 million) to fund several research project areas from 2012 to 2014. LSE’s Grantham Research Institute membership includes (but is not limited to) Fred Krupp, president of Environmental Defense Fund; Vikram Singh Mehta, chairman of Shell Companies (India); Carter Roberts, president and CEO of WWF (US); and Sir Evelyn de Rothschild, chairman of EL Rothschild Ltd.

The aim of the Grantham Research Institute is to strengthen the analytical and empirical underpinnings of the ‘green growth’ concept in relation to both developing and developed countries.” [Source] [GGGI Partners] Yvo de Boer is the Director-General of GGGI [People]. Prior to joining the global accountancy firm KPMG in 2010, Mr. de Boer led the international process to respond to climate change in the role of Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC) from 2006 to 2010.

Carbon Tracker could very much be considered the key stratagem, foundation, glue and more importantly, a veil or even a shield for both the divestment campaign (global in scale), and the so-called carbon “budget.” Reports, data and papers released by this foundation-financed think tank are pumped through the channels of power, the result being the legitimization of concepts that have no basis in reality if it were not for the non-profit industrial complex, in tandem with media, ensuring no one states – or even notices – the obvious, that the emperor has no clothes.

“A vain Emperor who cares about nothing except wearing and displaying clothes hires two swindlers who promise him the finest, best suit of clothes from a fabric invisible to anyone who is unfit for his position or ‘hopelessly stupid.’ The Emperor’s ministers cannot see the clothing themselves, but pretend that they can for fear of appearing unfit for their positions and the Emperor does the same. Finally the swindlers report that the suit is finished, they mime dressing him and the Emperor marches in procession before his subjects. The townsfolk play along with the pretense, not wanting to appear unfit for their positions or stupid. Then a child in the crowd, too young to understand the desirability of keeping up the pretense, blurts out that the Emperor is wearing nothing at all and the cry is taken up by others. The Emperor cringes, suspects the assertion is true, but continues the procession.” [Source]

In this instance, the emperor is the oligarchy as a collective, the ministers are the sycophants that comprise the NPIC, and the townsfolk – not wanting to appear stupid or undeserving.

Reports such as Carbon Tracker’s serve to legitimate, normalize and thus sanction the already capitalist-sanctioned “activism” that deliberately assists in pushing forward particular policies and agendas already conceptualized (years and even decades in advance) by the funders and the elite.

Consider who finances the work of the Carbon Tracker. “The work of Carbon Tracker has been made possible by the vision and openness to innovation shown by organisations such as the following”: The Rockefeller Brothers Fund, Bloomberg Philanthropies, The Tellus Mater Foundation, Generation Foundation, Wallace Global Fund, The European Climate Foundation, The Growald Family Fund, The Joseph Rowntree Charitable Trust ,The Polden Puckham Charitable Foundation, The Ashden Trust, Zennstrom Philanthropies, MAVA Foundation, The Velux Foundation, and The Grantham Foundation. After you consider the “who” behind the financing, consider “why” the financing.

Wallace Global Fund refers to its interest in funding Carbon Tracker as “Support for a collaboration between climate activists and financial analysts seeking to align the action of world capital markets with the reality of global warming.”

“The ability to deal with people is as purchasable a commodity as sugar or coffee and I will pay more for that ability than for any other under the sun.” — John D. Rockefeller

Millions of dollars funnelled through foundations into institutions, who in turn churn out reports, serve a pivotal purpose. Slick reports, marketing and PR build security (and acceptance/acquiescence amongst the populace) for the investment strategies belonging to the endowments (as well as the trustees) of the very foundations such institutions/NGOs are funded by. This is nothing more than polished PR at arm’s length intended/financed to promote said investments – as well as divestments. The appearance of an independent think tank evokes trust in the public realm. The oligarchs know how to manage, shape and modify behavioural change amongst the public. We are a public of rampant consumption and continued devolution, by design. There is little doubt that the billions of dollars the elite have pumped into the NPIC must quantify as one of the best long-term investments they have ever made.

The concepts of carbon budget, stranded assets and carbon asset bubbles have indeed gained traction with many people. This is in part due to the repetitive messaging of familiar language and unthreatening implications (via a massive injection of funding; Rockefeller et al must be pleased), the précis being that a person of privilege and monetary wealth can simply move his/her money from coal or Exxon and re-invest it into “clean” investments such as massive solar projects in deliberately impoverished Africa that will export the energy to those who already have it in Europe, geothermal, biomass projects that burn the remaining Earth’s forests and whole cultures into ashes, or REDD, which commodifies Earth’s forests for the even further expansion of capital. Pick your poison wisely. In less than 30 minutes we have “saved the world” and we still retain our wealth and privilege. Yet in reality, nothing has changed, the system demands continued growth, clean energy demands fossil fuels and vast resources from an already depleted planet, and the world continues to warm. To divest and feel no consequences is far preferred (by the 1% creating 50% of all global GHG emissions) than actual/tangible divesting from vacations (flying), personal automobiles, clothes dryers, steaks, lawn-mowers, leaf-blowers, Starbucks, etc. etc. etc. – including iPhones, iPods, iEverthing, with emphasis on the word “I.”

“The investor effort, called the Carbon Asset Risk (CAR) initiative, is being coordinated by Ceres and the Carbon Tracker initiative, with support from the Global Investor Coalition on Climate Change.” — Ceres Press Release, October 24, 2013

The organizations behind the quickly-emerging “new” economy are all very much interwoven, as are the players and key people. James Leaton, Research Director for the Carbon Tracker Initiative (2010 onward), was recently featured at the May 1-2, 2013 Ceres conference with 350.org’s McKibben and Bob Massie (former president and CEO of the New Economy Coalition). Leaton was also featured at the INCR Annual Meeting at the Ceres conference titled The 21st Century Investor: Ceres Blueprint for Sustainable Investing conference which took place April 30, 2013.

Carbon Tracker is identified as one of the key NGOs engaged with the US Divest-Invest Coordinating Committee (USCC). The combination of a need to be both an environmentalist and a capitalist (definitely not in that order) in the organization is represented in the following job posting:

As You Sow job description, February 13, 2015: “Organizations in the Coalition: 350.org, Responsible Endowments Coalition, Intentional Endowments Network, Hip-Hop Caucus, Energy Action Coalition, Service Employees International Union (SEIU), Black Mesa Water Coalition, Carbon Tracker, California Student Sustainability Coalition, Divest-Invest Philanthropy, Divest-Invest Individual, Fenton Communications, Mayors Innovation Project, Coalition for Environmentally Responsible Economies (CERES), New Economy Coalition, GreenFaith, Healthcare without Harm, Sustainable Initiatives at Partners HealthCare, As You Sow, or other organizations engaged with Divest-Invest.”

Key staff at Carbon Tracker demonstrate that a vital prerequisite to being hired/chosen by the Tracker is vast experience in carbon markets.

Prior to his role at Carbon Tracker, Leaton was a sustainability and climate change consultant at PricewaterhouseCoopers, focusing on the financial sector, advising blue chip clients on risks and “opportunities.” Prior to PricewaterhouseCoopers, Leaton spent five years at WWF as a senior policy advisor, focusing on the links between energy and finance.

“‘Assets are already being written down due to increasing competition between energy sources, air quality standards being introduced to reduce health impacts, and measures to reduce carbon pollution combining to change the energy landscape,’ said James Leaton, Research Director at Carbon Tracker. ‘Avoiding high cost, high carbon projects which are failing to deliver a return on capital will improve shareholder returns.'” — Ceres Press Release, October 24, 2013

Mark Fulton is currently an adviser to the Carbon Tracker Initiative and Senior Fellow at Ceres. He is a recognized economist (of 35 years) and market strategist at leading financial institutions including Citigroup, Salomon Bros and County Natwest. Prior to this role, Fulton was head of research at Deutsche Bank Climate Change Advisors at Deutsche Bank (from 2007 to 2012). He is currently a member of the Capital Markets Climate Initiative, UK Department of Energy and Climate Change. From 2010 to 2012 he was co-chair of the United Nations Environment Programme (UNEP) Finance Initiative Climate Change Working Group. In 2011 and 2012, Fulton served on the technical committee of the UN Secretary-General’s Sustainable Energy for All.

“‘Many of the responses investors have received from the companies thus far acknowledge that there is a legitimate risk issue around carbon reserves, and companies are open to continued engagement from the investor community to determine the scope,’ said Mark Fulton, a member of the Carbon Tracker’s Advisory Board and a Ceres adviser.” — Ceres Press Release, October 24, 2013

Anthony Hobley has been Chief Executive Officer of the Carbon Tracker Initiative since February 2014. Hobley played a key role in helping design the UK’s pilot emissions trading scheme and also in developing key aspects of the EU ETS (Emissions Trading System). Hobley was seconded to Norton Rose Fulbright’s Sydney office between 2010 and 2012 where he was heavily involved in the development of the emerging carbon and clean energy markets in Australia and Asia. He was a key figure behind the creation of the business advocacy group Businesses for a Clean Economy, a coalition of businesses arguing for a price on carbon. Anthony was also behind the creation of the business group Climate Markets & Investment Association where he is the current president. He also sits on the boards of the Verified Carbon Standards Association and on the Advisory Board to the Climate Bonds Initiative. [Source | Full Bio]

The Carbon Tracker advisory board is made up of representatives of carbon market institutions.

The board includes: Nick Robins (co-director of the UNEP Green Finance Enquiry), Lois Guthrie (CEO of the Carbon Disclosure Standards Board), Tessa Tennant (founder and board member, Association for Sustainable and Responsible Investment in Asia – ASrIA), Ben Caldecott (programme director, Smith School of Enterprise and the Environment, University of Oxford) Catherine Howarth (CEO at ShareAction), James Stacey (head of sustainable finance strategy at Earth Capital Partners), Jemma Green (previously VP of sustainable finance at JP Morgan), Meg Brown (previously director of climate and sustainability research at Citi Investment Research), Stanislas Dupré (founder & director at 2° Investing Initiative), Bevis Longstreth (previously commissioner of the United States Securities and Exchange Commission (SEC), Laura Sandys (member of parliament for South Thanet), Mark Lewis (senior sustainability analyst and co-ordinator of energy transition & climate change research at Kepler Cheuvreux), and Neil Morisetti (director of strategy at UCL Science, Technology, Engineering and Public Policy Department, previously special representative for climate change at the UK Foreign Secretary.)

Ben Caldecott’s elite standing in the interlocking directorate is extensive. Identified as a British environmentalist, economist, and commentator, he serves on the advisory board of Carbon Tracker, and as a trustee of the Green Alliance think tank. He serves as head of government advisory for Bloomberg New Energy Finance, director of the Stranded Assets Programme at the Smith School of Enterprise and the Environment, adviser to The Prince of Wales’ International Sustainability Unit, academic visitor at the Bank of England, and visiting fellow at the University of Sydney. He is head of European Policy at Climate Change Capital, directing the CCC think tank and advising CCC funds and clients on the development of policy-driven markets. Caldecott has previously worked as research director for environment and energy at the think tank Policy Exchange. Caldecott serves on the advisory network of the Natural Capital Declaration, which is key (discussed at length further in this report). Caldecott has worked in parliament and for a number of different UK government departments and international organisations, including UNEP and the Foreign & Commonwealth Office (FCO).

Caldecott has been instrumental in building government support for “clean coal.” Thus, UK leaders are all calling for an end to unabated coal – code for carbon capture and sequestration/storage.

Above: Business Summit on Climate Leadership 2011 Speakers. Ben Caldecott – Head of European Policy, Climate Change Capital, second in from far right (Flickr, Climate Group)

Carbon capture and sequestration (CSS) and enhanced oil recovery (EOR) (which uses the sequestered CO2 to recover more oil out of depleted oil fields) is a critical component of the “new economy.” CCS is to gain acceptance as a vital component of the new “low carbon” economy where societies can continue production/burning of both coal and oil under the guise of “emissions reduction measures.” In tandem with the quiet proliferation of biomass (supported by the NPIC) and other false solutions, this economy has already begun:

“In the Weyburn oil field in Saskatchewan, Canada – where CO2 from the Dakota Gasification Company’s coal gasification plant in Beulah, ND is piped north to pump into the oil field, buying 25 more years of oil production – 2.8 times more CO2 would be released from all of the extra oil they expect to produce than the amount they ‘sequester’ (ignoring reports of leakage). In the Permian Basin (TX/NM), 47% of the amount of CO2 pumped into the ground is re-released by burning the extra oil produced (that would otherwise stay in the ground).” [Source]

Stephen Tindale, former executive director of Greenpeace UK, is another “environmentalist” in support of carbon capture and storage. In a series on his website Climate Answers , the commentary CCS: What the EU Needs to Do – Part 1, with Nick Horler, chief executive of ScottishPower, is supported by Caldecott. Both Tindale and Caldecott have contributed significant language and concepts to the discourse on climate since this 2010 piece. Here we witness just one aspect of the many realms of genius behind the marketing/branding of the instrumental stranded/bubble/budget language that has “changed everything.” Coal in particular, has been identified and condemned by both the media and NPIC as a coming stranded asset. Thus coal is “saved” from stranded status when CCS is deployed; the “carbon bubble” refrains from bursting; and the amount of “unburnable carbon” in the “carbon budget” reduced.

As with all the shaping of our shared futures by the elite, the pathway to CCS is clear in the 2008 Green Alliance paper, A Last Chance for Coal, with contributions from Ben Caldecott while at the Policy Exchange think tank. The paper notes that it is critical Europe’s commitment to CCS be realized before 2020; 12 short years away from the paper’s publication date. The year 2020 is a critical date of vast significance – a recurring deadline for all environmental market solutions to be in place.

While the front figures in the “movement” such as 350’s Bill McKibben and Naomi Klein repeat and inflate the language of stranded assets, carbon bubbles, budgets, divestment and renewable energy, the issue of CCS is rarely mentioned or touched upon, while the most critical issue that has ever faced humanity, the financialization of nature, via the global implementation of “payments for ecosystem services,” receives no attention whatsoever. It’s not that these appointed “leaders” don’t understand the “this changes everything” world that the oligarchs have been working toward for decades. They do. Consider that Caldecott, as a key figure in the delivering/marketing of mainstream finance to “clean energy” partnered with 350.org for the 2014 “Stranded Down Under Tour” in Australia.

“It appears to us that divestment is the bait and engagement is the fishing rod – divestment is vital in hooking people’s attention, and the engagement tools and analysis is [sic] essential to reel the capex [capital expenditures] in. Investors and NGOs now need to have the patience to catch enough fish.” — Carbon Tracker Website

Most, if not all organizations and investment firms promoting or affiliated with the divestment campaign have vested interests in the expansion of false solutions such as CCS, biomass, carbon credits/trading and environmental markets – all clamouring to cash in on the promise of the most unparalleled wealth opportunity of the 21^st century.

The Investor Expectations: Oil and Gas Companies was developed by the IIGCC with support from Ceres’ INCR, IGCC and AIGCC. It builds on the Carbon Asset Risk (CAR) Initiative, through which 75 investors managing more than $3 trillion in assets engaged with 45 of the world’s largest fossil fuel companies. The CAR initiative is coordinated by Ceres and Carbon Tracker, with support from IIGCC and IGCC, which lead engagement with fossil fuel companies in Europe and Australia/New Zealand respectively.

The Carbon Asset Risk (CAR) Initiative: “In the long term, investors want to see fossil fuel companies adapt, remaining successful by: Focusing on fewer projects at the low end of the cost curve; Returning capital to investors; and Diversifying business toward cleaner, lower-carbon energy sources, including renewables, energy efficiency and carbon capture and storage (CCS).”

Divest-Invest

“The transition to a low-carbon economy will be the most significant economic change in history. It will be deeper, more fundamental than the industrial revolution, and faster than the technology revolution. And it’s going to happen in the next five to 10 years…. The leadership of Divest-Invest is important, the leadership at 350.org.” — David Blood, Generation Investment, Divest-Invest Transcript, Fenton Communications, Wallace Global Fund, and Inst. for Policy Studies, September 22, 2014

 

The common definition of a Divest-Invest commitment is a pledge to divest from the top fossil fuel companies within five years and to move those assets into clean energy investments. As the movement has spread, participants have tailored the timing and sequence of commitments to their particular circumstances. The working group has recognized the variety of these circumstances and has designed this process to allow institutions to meet both their fiduciary and moral responsibilities. — Arabella Advisors, Measuring the Global Fossil Fuel Divestment Movement, September 19, 2014

The global divestment campaign targets 200 of the world’s largest publicly traded fossil-fuel corporations: 100 from oil and gas and 100 from coal. These are ranked according to the size of their proven reserves. The Measuring the Global Fossil Fuel Divestment Movement report (September 19, 2014) discloses the following:

“The working group relied upon self-reported data from individual commitments to determine the number and scope of divest-invest pledges. Individuals agreed to a standard pledge, and most completed a brief survey. The standard pledge (available at http://divestinvest.org/individual) states:

1. I will make no new investments in the top 200 oil, gas, and coal companies [as defined by the Carbon Tracker 200].
2. I will sell my existing assets tied to these oil, gas, and coal investments within three to five years.
3. I will invest in the new energy economy.

It is critical to note the language and the framing of the divest-invest campaign (which isn’t necessarily the same as divestment at large). To begin, the term “new” (in #3) refers to both the “new economy” and, in this instance, the “new energy economy,” which is strategic. As discussed in 2014 by Avaaz/Purpose Inc. co-founder Jeremy Heimans, the former term “green” (as in “green economy”) is, for all marketing intents and purposes, dead. For clarity, individuals agree to not invest in the top 100 public coal, oil and gas companies listed by the “Carbon Tracker 200.” All other investments appear to be fair game: biofuel/biomass, nuclear, the military-industrial complex/weapons industry, the chemical industry, factory farming, aviation, BNSF, pornography… it’s all up for grabs. One can move their investments from Exxon over to Lockheed Martin & make a killing – both literally and figuratively. Not only is there a plethora of fuel-intensive stock options/investments, those divesting are given a full five years to follow through on their commitment “to meet both their fiduciary and moral responsibilities,” meaning that a corporation/entity can announce their “commitment,” have 350.org greenwash their persona, and then five years later, when staff positions, economic opportunities, etc. have changed, toss it out with the bath water if they wish to do so. Further, it is not enough to simply divest – one must agree, most importantly, to “invest in the new energy economy.” Thus, the idea of starving the corporate stranglehold, even if only in a limited way, is effectively out the window.

Oil services companies, pipeline companies, refiners, holding facility companies, etc. are all fair game for those wishing to divest. Yet the reality is that none of these industries/companies make their big money from shareholders or stock markets. These companies make the bulk of their profits by booking reserves and selling their product directly to market. Further, most of the capital for the shale gas and oil revolution comes from private equity. “Big oil” has not been at the centre of it. Rather, the centre is comprised of smaller independent and private companies. The more one understands the industries and the business, the more one comes to the realization of what a hoax the “divest-invest” campaign actually is.

Divest-Invest Philanthropy

The Divest-Invest NGO is comprised of three pillars: 1) Divest-Invest Philanthropy [4], 2) Divest-Invest Individual and 3) the Divest-Invest Advisors and Allies.

In her role as CEO of Phoenix Global Impact, Jenna Nicholas is consulting with the World Bank on social impact bonds; she is coordinating the Divest-Invest: Philanthropy Initiative, appointed by the Wallace Global Fund as of March 2014. Nicholas is an associate to Calvert Special Equities and sits on the advisory groups of the Impact Hub DC, Nexus Global Youth Summit and High Water Women. [Full Bio]

Allies and advisors of the Divest-Invest campaign are to ensure success: “Advisors and allies keep core campaign staff informed on various financial, business, community and legal trends relevant to the pledge and/or steps for follow-through…. In collaboration with Divest-Invest Philanthropy and many other movement partners and allies, we are accelerating the transition to a sustainable and equitable economy. [Source]

Such groups are popping up everywhere. Whether there are dozens, hundreds or even thousands has yet to be ascertained. But one thing is certain. They have been tactically preparing for the “new economy” windfall.

Consider the 2° Investing Initiative [2°ii], a multi-stakeholder think tank working to align the financial sector with 2°C climate goals: “Our association consists of more than 30 member organizations and 60 individual members, most of whom are serving in financial institutions (banks, asset management, private equity, brokerage, etc.). Some other members are experts from different fields (consulting, accounting, extra-financial analysis, etc.), either researchers (economy, climate economics), or public servants. Two of our members are Members of the European Parliament (former Ministers of Environment in their respective countries).”

Members:

Peers and links within this particular interlocking directorate include the Carbon Tracker Initiative (which coined the term “carbon bubble”), Long Finance, Finance Watch, OECD, Climate Change Capital, UNEP-FI (a partnership between the United Nations Environment Programme and financial institutions), Asset Owners Disclosure Project, Climate Policy Initiative, E3G (Third Generation Environmentalism), CDC Climat, McKinsey Global Institute, Climate Bonds Initiative, BNEF (Bloomberg), GABV (Global Alliance for Banking on Values), BankTrack and The Institutional Investors Group on Climate Change (IIGCC is a Ceres initiative).

Over and over again we witness (yet ignore) the interlocking directorate: NGOs, executive board members, advisors, fellows, CEOs, politicians, bankers and media – all working together for the expansion of capital markets. And although the divestment campaign appears fresh out of nowhere, the NGOs assigned to capture the public’s trust, waiting in the wings, did not simply fall from the summer sky. The organizing and deployment is precise, strategic, seductive and global in scale.

As one investigates the history and financing of the divestment campaign, one begins to recognize specific organizations that appear/overlap more frequently than others, for example, Ceres, Ceres entities, United Nations organizations, 350.org and Carbon Tracker. These groups lead in shaping the public opinion and providing the discourse required to implement already conceived/awaiting policies that serve hegemonic interests (expansion of capital markets), while simultaneously securing, strengthening and insulating capitalism itself.

Investment Terminology

In the July 7, 2014 article, Why the Fossil Fuel Divestment Movement is a Farce, the author sheds much needed light on investment terminologies and information that are little understood by the average citizen:

“Notice the words ‘publicly traded.’ In other words, fossil fuel divestment would target only major corporations that are listed on the stock market. But pension funds and endowments, the entities largely targeted by the 350.org campaign, invest hundreds of billions of dollars in privately traded securities, such as hedge funds and private equity – vehicles that are invested at all levels of the fossil fuel economy. (In particular, hedge funds and private equity have been found to be the key financial backers of the fracking boom.) Were the Massachusetts divestment bill to pass, state pension funds would invariably still be invested in the fossil fuel economy.”

Graphic: Public companies represent a small piece of the pie; $7 trillion in fossil fuel reserves as opposed to private and national companies that represent three times this market size. Source

The cautionary reference to hedge funds is significant. Note that Blood & Gore’s Generation Investment is a hedge fund. Also note the tight relationship between 350.org founder Bill McKibben, hedge fund billionaire Tom Steyer, the US Democratic Party and the crème de la crème of the establishment Left (to be discussed later in this report). On May 6, 2014 CNN reported that the top 25 hedge fund managers took home $21 billion among them.

The author [Why the Fossil Fuel Divestment Movement is a Farce] continues:

“The divestment campaign argues that 200 publicly traded fossil fuel companies dominate the fossil fuel exploration market. But they ignore that such companies frequently depend on private equity and hedge funds for financing new investments when large banks are uninterested in taking on further risk. The public can rarely (if ever) verify that these types of arrangements take place, even if it is a teacher attempting to verify what her pension fund is doing with her money.

 

“The divestment campaign argues that 200 publicly traded fossil fuel companies dominate the fossil fuel exploration market. But they ignore that such companies frequently depend on private equity and hedge funds for financing new investments when large banks are uninterested in taking on further risk. The public can rarely (if ever) verify that these types of arrangements take place, even if it is a teacher attempting to verify what her pension fund is doing with her money.

 

“Pension funds and endowments have not always invested in the private market. In the 1980s and before, in fact, they were almost exclusively invested in publicly traded securities. Laws such as the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of 1940 allowed the public to verify how the companies in which pension funds and endowments were investing used their funds and provided transparency to investors in order to prevent fraudulent activity.

 

“By focusing only on publicly traded securities, the fossil fuel divestment campaign ignores the corporate misdeeds of a sector that holds billions of dollars of investments in a dirty energy economy.

 

“The same is not possible with privately traded alternative investments, which have been on the rise since the early 1990s. (It is difficult to ascertain why exactly pension funds and endowments have funneled assets into private markets, as there is little evidence that they perform any better than stocks and bonds and a great deal of evidence that they are far riskier. Private market money managers are notorious as great salesmen, and a series of pay-to-play scandals have implicated some of the largest hedge funds and private equity firms.) Regardless, today pension funds and endowments are by far the largest investors in hedge funds and private equity.” [Emphasis added]

Above: Private and institutional investors represent Carbon Tracker’s largest/key target audience.

The author continues, citing conflict of interest:

“Further compromising the campaign is its questionable line of funding. It has received at least $350,000 from Jeremy Grantham, a hedge fund manager who oversees more than $500 million in assets for public pension funds in Massachusetts. According to a report from Inside Philanthropy, 350.org also receives funding from billionaire hedge fund manager Tom Steyer. (The organization declined to state exactly how much money it has received from Steyer and Grantham.)

 

“Farallon Capital Management, which Steyer founded, has major investments at all levels of the fossil fuel economy. While he is no longer at the helm, during his leadership it pursued major deals in fossil fuels, as a recent report from Reuters showed. In fact, the firm had been a target of student activists before he began funding them.

“Grantham, for his part, argued in an interview with The Guardian that he felt that student activists should ‘stamp their feet’ to get their university endowments to divest from fossil fuels ‘because they can do that.’ With his firm’s significant investments in the fossil fuel economy – according to first quarter 2014 filings, $1.2 billion in Chevron, $570 million in ExxonMobil and $240 million in Monsanto – he, apparently, cannot.” [Emphasis added]

Jeremy Grantham apparently encourages others to stamp their feet and divest while his firm, decidedly, does not. He is not alone. Following the media saturation of September 22, 2014 that hailed the Rockefeller Brothers Fund (RBF) divestment as a historic world event, few reported that RBF had decided to hang on to their Exxon stocks. [This is discussed at length later in this report.]

Here it is important to recall that Carbon Tracker is affiliated with London School of Economics Grantham Research Institute. Jeremy Grantham co-founded the Grantham Foundation for the Protection of the Environment in 1997. Funding was given to both Imperial College London and London School of Economics to establish the Grantham Institute for Climate Change and the Grantham Research Institute on Climate Change and the Environment. In 2011, the Grantham Foundation for the Protection of the Environment donated $1 million to both the Sierra Club and Nature Conservancy, and $2 million to the Environmental Defense Fund. The Foundation has also provided support to Greenpeace, the WWF and the Smithsonian. [Source] As noted earlier in this report, London School of Economics Grantham Research Institute membership includes (but is not limited to) Fred Krupp, president of Environmental Defense Fund; Vikram Singh Mehta, chairman of Shell Companies (India); Carter Roberts, president and CEO of WWF (US); and Sir Evelyn de Rothschild, chairman of EL Rothschild Ltd.

In the July 10, 2014 rebuttal, Why a Movement is Never a Farce, the author frames the divestment campaign as a Gandhi-esque movement. Yet there are items that an astute citizen must consider distinct red flags: “Endorsements have come from such unexpected places as the World Bank, and even former Treasury Secretary and Goldman Sachs’ COO Henry Paulson this past week.” Given the references to Gandhi and endorsements that “have come from such unexpected places as the World Bank,” it is of interest to note that Martin Luther King’s first trip to India to study Gandhi was paid for by the RJ Reynolds (tobacco empire) family (funneled through Quaker group American Friends Service Committee.) In a letter, an AFSC official writes that the trip seems to have been designed as a photo-op to “build up King as a world figure, and to have this buildup recorded in the US.”

The author then writes: “It is a sign of divestment’s power that it has gained endorsements from the likes of Wall Street, but we shouldn’t fool ourselves into trusting either Wall Street or the White House to show us the way to a new economy. Accepting endorsement, however, is not the same as taking direction; fossil fuel divestment is a grassroots movement led by students, not billionaires, and is firmly committed to justice and solidarity. I know because myself and countless other students and recent alumni – with the vital support of nonprofits – have poured the last few years of our lives into building it. Call that misdirected, sure, but don’t call it Astroturf.”

Yet it’s not “a sign of divestment’s power that it has gained endorsements from the likes of Wall Street” – the divestment campaign is Wall Street. 350.org (with McKibben at the helm) developed the divestment campaign in consultation with Wall Street. The author is, however, correct that the purpose of the divestment campaign is very much “to show us the way to a new economy.” As 21^st century lambs of the oligarch, well-intentioned students are utilized, used and misdirected via tactical manipulation.

Steyer, Bloomberg, Soros & the Democrats

Photo: People’s Climate March, 2014. Bill McKibben (350.org founder) with Tom Steyer, hedge fund billionaire and founder of Generation Next

“It’s a big club, and you ain’t in it.” — George Carlin

An example of so-called progressive media amplifying Carbon Tracker’s disapproval of coal use in China (Carbon Tracker report: “Energy Access: why coal is not the way out of energy poverty”) appears straightforward. As does the slide presentation published October 29, 2014 by Carbon Tracker: Is Coal a Sinking Ship? Yet perhaps it isn’t.

Consider that the demand for coal in both China and India is going to do nothing but grow. Then consider this: In an effort to support its own mines and workers and economy, China is in the process of cutting all purchases of imported coal as rapidly as possible (April 14, 2015: “China’s coal imports decline by 42 percent during first quarter…. The international coal market is saddled with excessive supplies for the moment….”). India, still trying to provide basic power to citizens, is also rejecting further dependence on international coal. On November 12, 2014 the Power and Coal Minister of India, Piyush Goyal, stated “in the next two or three years we should be able to stop imports of thermal coal.” This position has been endorsed by India’s Prime Minister. This certainly puts a damper on U.S. plans to ship an additional 100 million tons of coal per year to Asia via three proposed coal ports – an aggravating deterrent that must also extend to Australia which plans to open mega coal mines in Queensland’s Galilee Basin, as well as the world’s largest port (at Abbot Point right in the middle of the Great Barrier Reef) for export to China. Not only does India have more coal than Australia, India has 57 times more labourers.

A “no coal for China” anthem as sung by the non-profit industrial complex can also be interpreted as de facto promotion of natural gas/fracking, nuclear, etc. Consider the Bloomberg media coverage (referencing Carbon Tracker) in the article covering China moving from coal to gas. As Bloomberg (Bloomberg Philanthropies being a financial backer of Carbon Tracker) has been financing the fracking boom, one might question if there is a coordinated effort between Michael Bloomberg and former Treasury Secretary Hank Paulson who, along with billionaire Tom Steyer’s Next Generation, have launched the Risky Business Project.

From the Risky Business website:

“Launched in October, 2013, the Risky Business Project focuses on quantifying and publicizing the economic risks from the impacts of a changing climate.

 

“Risky Business Project co-chairs Michael R. Bloomberg, Henry Paulson, and Tom Steyer tasked the Rhodium Group, an economic research firm that specializes in analyzing disruptive global trends, with an independent assessment of the economic risks posed by a changing climate in the U.S. Rhodium convened a research team co-led by climate scientist Dr. Robert Kopp of Rutgers University and economist Dr. Solomon Hsiang of the University of California, Berkeley. Rhodium also partnered with Risk Management Solutions (RMS), the world’s largest catastrophe-modeling company for insurance, reinsurance, and investment-management companies around the world. The team’s complete assessment, along with technical appendices, is available at Rhodium’s website, climateprospectus.rhg.com.”

The Risky Business Project is a joint partnership of Bloomberg Philanthropies, the Paulson Institute, and TomKat Charitable Trust (established in 2009 with funding from Tom Steyer and Kat Taylor), one of many financiers of 350.org (see image below). Additional support for the project has been provided by the Skoll Global Threats Fund, the Rockefeller Family Fund, the McKnight Foundation, the Joyce Foundation, John D. and Catherine T. MacArthur Foundation, and the Heising-Simons Foundation. Staff support for the Risky Business Project is provided by Next Generation, also co-founded by Steyer.

Bloomberg Philanthropies also invests in oil and gas via Willet Advisors. Logic dictates that due to its holdings/investments in the gas/fracking industry, Bloomberg will therefore highlight any victories against dirty coal – including faux ones. Thus although the divestment campaign is successful in the stigmatization of coal corporations, the label of corporate pariah does not extend to carbon sequestration schemes, industrial biomass and a score of other false solutions that will comprise the bulk share of the “clean” economy. Rather, such false solutions are grossly labeled as victorious and sought after by the appointed “leaders” of the environmental “movement.” Consider the re-tweet of the article Shell’s Global Warming Strategy Is Psychopathic & Paranoid, Says Former UK Climate Envoy by Bill McKibben in which the gist of the argument is why Shell is dragging their feet on carbon capture and sequestration. Further consider that the Bureau of Land Management’s plan to convert Nevada’s Pinyon Forests to biomass that threatens ancient rituals is backed by partner organizations such as Sierra Club, in partnership with Barrick Gold and Barrick Corp. This is just one instance of biomass facilities planned or already in operation under the guise of “clean” energy and/or carbon neutrality.

Steyer must be considered king hedge fund bourgeois extraordinaire with close ties to those in power. Time magazine, May 22, 2014: “So when Barack Obama appeared at Tom Steyer’s San Francisco home for a fundraiser last year, the President had to know there would be an ask. The 56-year-old Steyer is a hedge-fund billionaire and a major-league Democratic donor.”

August 6, 2014, Politico:

“Billionaire Tom Steyer joined fellow liberal billionaire George Soros for a lunchtime meeting with Obama adviser John Podesta at the White House on Feb. 20, according to White House visitor logs. That was just days after Steyer pledged to spend $100 million on the midterm elections. Steyer also met with Podesta on March 31, along with NextGen Climate Action COO Josh Fryday and Denver attorney Ted White, managing partner of Fahr LLC, an ‘umbrella entity’ for Steyer’s various organizations.

 

“According to records, Steyer has visited the White House on at least 12 occasions since 2009 for meetings with top-level administration officials including Rahm Emanuel, Bill Daley, Pete Rouse, Heather Zichal, Jon Carson and David Lane. Those records only cover through April, and Steyer is known to have attended a June 25 meeting with Podesta, John Holdren, Valerie Jarrett and others to discuss his ‘Risky Business’ report on climate change.”

Exploiting climate change destruction to garner votes for the Democrats is par for the course within the NPIC; exploiting climate change destruction to further unprecedented “climate wealth opportunities” is not only the best game in town – it’s the best game on the industrialized planet.

 

Next: Part X

 

[Cory Morningstar is an independent investigative journalist, writer and environmental activist, focusing on global ecological collapse and political analysis of the non-profit industrial complex. She resides in Canada. Her recent writings can be found on Wrong Kind of Green, The Art of Annihilation, Counterpunch, Political Context, Canadians for Action on Climate Change and Countercurrents. Her writing has also been published by Bolivia Rising and Cambio, the official newspaper of the Plurinational State of Bolivia. You can follow her on twitter @elleprovocateur]

 

EndNotes:

[1] Source: “M. Mills, personal communication, 2010.” In Howell, Robert. “The Challenge of Sustainability for the Financial Sector.” International Journal of Environmental, Cultural, Economic and Social Sustainability.

[2] The Forum for Sustainable and Responsible Investment (US) also serves to promote the divestment campaign in the “Education Center” where one finds “Fossil Fuels, Divestment & Reinvestment.” Within this section, under other resources, the link titled Institutional Pathways to Fossil Free Investing brings us back to the May 2013 41-page document Institutional Pathways to Fossil-Free Investing [emphasis added].

[3] “Thanks to the Carbon Bubble report, we now have some better numbers to help us grapple with that question. Based on research by the Potsdam Institute, the report suggests that if the world wants an 80% chance of staying within the 2ºC limit, we should avoid emitting more than 565 gigatonnes (GT) of CO₂ by 2050. That equates to just one-fifth of the world’s total proven fossil fuel reserves, which contain enough carbon to produce a massive 2,795GT of CO₂, the report estimates.”

[4] The DivestInvest Philanthropy steering committee and working group members include: Ellen Dorsey, Ellen Friedman, Richard Woo, Tom VanDyck, Melissa Beck, Jenna Nicholas, Farhad Ebrahimi, Vic de Luca, David Gordon, Florence Miller, Peter Martin, Anne Stetson, Jon Jensen, John Goldstein, Shally Shanker and Ginny Quick.

McKibben’s Divestment Tour – Brought to You by Wall Street [Part II of an Investigative Report] [The “Climate Wealth” Opportunists]

Ceres & the Investor Network on Climate Risk (INCR)

March 10, 2014

Part two of an investigative series by Cory Morningstar

Divestment Investigative Report Series [Further Reading]: Part I • Part II • Part III • Part IV • Part V • Part VI • Part VII • Part VIII • Part IX • Part X • Part XI • Part XII • Part XIII

 

 “Of all our studies, it is history that is best qualified to reward our research.” — Malcolm X

 

Preface: A Coup d’etat of Nature – Led by the Non-Profit Industrial Complex

It is somewhat ironic that anti-REDD climate activists, faux green organizations (in contrast to legitimate grassroots organizations that do exist, although few and far between) and self-proclaimed environmentalists, who consider themselves progressive will speak out against the commodification of nature’s natural resources while simultaneously promoting the toothless divestment campaign promoted by the useless mainstream groups allegedly on the left. It’s ironic because the divestment campaign will result (succeed) in a colossal injection of money shifting over to the very portfolios heavily invested in, thus dependent upon, the intense commodification and privatization of Earth’s last remaining forests, (via REDD, environmental “markets” and the like). This tour de force will be executed with cunning precision under the guise of environmental stewardship and “internalizing negative externalities through appropriate pricing.” Thus, ironically (if in appearances only), the greatest surge in the ultimate corporate capture of Earth’s final remaining resources is being led, and will be accomplished, by the very environmentalists and environmental groups that claim to oppose such corporate domination and capture.

Beyond shelling out billions of tax-exempt dollars (i.e., investments) to those institutions most accommodating in the non-profit industrial complex (otherwise known as foundations), the corporations need not lift a finger to sell this pseudo green agenda to the people in the environmental movement; the feat is being carried out by a tag team comprised of the legitimate and the faux environmentalists. As the public is wholly ignorant and gullible, it almost has no comprehension of the following:

1. the magnitude of our ecological crisis
2. the root causes of the planetary crisis, or
3. the non-profit industrial complex as an instrument of hegemony.

The commodification of the commons will represent the greatest, and most cunning, coup d’état in the history of corporate dominance – an extraordinary fait accompli of unparalleled scale, with unimaginable repercussions for humanity and all life.

Further, it matters little whether or not the money is moved from direct investments in fossil fuel corporations to so-called “socially responsible investments.” The fact of the matter is that all corporations on the planet (and therefore by extension, all investments on the planet) are dependent upon and will continue to require massive amounts of fossil fuels to continue to grow and expand ad infinitum – as required by the industrialized capitalist economic system.

The windmills and solar panels serve as beautiful (marketing) imagery as a panacea for our energy issues, yet they are illusory – the fake veneer for the commodification of the commons, which is the fundamental objective of Wall Street, the very advisers of the divestment campaign.

Thus we find ourselves unwilling to acknowledge the necessity to dismantle the industrialized capitalist economic system, choosing instead to embrace an illusion designed by corporate power.

The purpose of this investigative series is to illustrate (indeed, prove) this premise.

+++

CERES

 “One recent weekday afternoon, three men walked out of the Environmental Defense Fund’s midtown Manhattan office on their way to have lunch together. On the left was EDF’s senior economist. On the right was an environmental expert in the Soviet government. Between them was a businessman, a trader in the nascent enterprise of buying and selling pollution rights. Together that trio forms a picture of how the new environmentalism is shaping up: global, more cooperative than confrontational – and with business at the center.” — ENVIRONMENTALISM: THE NEW CRUSADE, CNNMoney Fortune, February 12, 1990

The present can only be fully understood if one understands the past. Therefore, in order to understand the present day 350.org divestment campaign, we must look at the inception/creation of 350.org’s partner: The Coalition for Environmentally Responsible Economies (Ceres).

Who is Ceres? Ceres is the 21^st century puppeteers of Wall Street who, most recently, are pulling the strings behind the 350.org divestment campaign. Ceres represents the very heart of the nexus: millionaire liberals, their foundations, the “activists” they manage, and most importantly, where the plutocrats invest their personal wealth and that of their foundations. [“As a nonprofit 501(c)(3) organization, Ceres relies on support from foundations, individuals and other funders to achieve our mission to integrate sustainability into day-to-day business practices for the health of the planet and its people.” (Source: Ceres 2010 Annual Report)

On the Ceres Board of Directors we find key NGO affiliations: Natural Resources Defense Council (NRDC), Sierra Club, World Resources Institute, Ecological Solutions Inc. and Green America, to name a few. (The history of the Ceres board of directors is discussed at length, further in this report.)

 “Building climate change risks and opportunities into Wall Street research and analysis is a top Ceres priority.” — Ceres Annual Report 2006

Exxon Valdez: Opportunity Knocks

 “… sceptics of the effectiveness of a voluntary environmental ethics question whether or not the Valdez principles contain more smoke than substance.” — The Valdez Principles. Is it Time to Put Bambi in the Boardroom? California Journal, November 1990

On March 24, 1989, one of the most devastating man-made environmental disasters in Earth’s history, the Exxon Valdez oil spill, shook public confidence in corporate America to the core. This catastrophic event, 5 years after the atrocious man-made disaster in Bhopal, brought corporate misconduct to the forefront. Corporate America found itself in the midst of an unprecedented public relations disaster.

 “…not long after the Exxon Valdez spill, 41% of Americans were angry enough to say they’d consider boycotting the company.” — The Valdez Principles. Is it Time to Put Bambi in the Boardroom? California Journal, November 1990

Within six months of the Exxon disaster, the late Joan Bavaria, then-president of Trillium Asset Management, had formed a coalition that included high profile environmentalists. The Coalition for Environmentally Responsible Economies (CERES) was formed with its 10-point code of conduct in hopes of reigning in corporate power. [Note that in 2003, the organization dropped the CERES acronym and rebranded itself as “Ceres”.] Presented to the public as The Valdez Principles [1] on September 7, 1989, the strategic name brilliantly exploited the Valdez crisis (the Principles are said to have actually been written before the Valdez spill, in 1988) to build its own brand recognition and value. Ceres would be the watchdog and savior, reigning in corporate power and making it behave. Although corporate America was reluctant, due to the growing hostility and resentment from the public it also recognized that this coalition offered a strategy (“a voluntary mechanism of corporate self-governance”) as a means of re-establishing public trust, securing brand reputation and most importantly, protecting profits and power. Its influence was enhanced by the fact that member institutional investors controlled over $150 billion in assets. Yet, the risks did not go unrecognized:

“A new basis for environmentally-related derivative suits may now be emerging. Various social-activist groups are successfully sponsoring shareholder resolutions at many major corporations to mandate greater environmental accountability by the corporations. These resolutions require the implementation of ‘Valdez Principles,’ which call for the corporations to curtail air and water pollution, conserve energy, market safe products, pay for damage caused to the environment, and make regular reports on environmental matters to the shareholders. If directors and officers of corporations which have adopted these Valdez-type resolutions fail to comply with their mandate, derivative suits against the directors and officers are likely to follow.” — ACE Bermuda News, July 1991

Corporate America held out. Ceres eventually buckled. The Valdez Principles became the CERES Principles (a 10-point code of environmental conduct) [2], with the most powerful language watered down and abolished. This was fully understood by Bavaria, who recognized that without the annual public audits in particular (principle #10), the principles would be meaningless. November 1990:

“Joan Bavaria, co-chairperson of CERES, believes that the first 8 principles are meaningless without the tenth principle allowing public accountability. The difference between having the company develop their own principles, then monitoring them internally is like putting a fox in the chicken house.” — The Valdez Principles. Is it Time to Put Bambi in the Boardroom? California Journal, November 1990

In the meantime, environmentalism was changing and becoming big business. The world had embraced Neoliberalism (or had it shoved down their throats by the IMF and World Bank) with a statement of neoliberal aims being codified in the Washington Consensus in 1989. This was to be the means of liberating the market from state intrusion, which would instead serve to shield the expanding corporatocracy. Neoliberalism would prove to be the instrumental tool of choice in what would serve, protect and expand the power of the oligarchy.

From the CNNMoney Fortune article: ENVIRONMENTALISM: THE NEW CRUSADE, February 12, 1990:

“Far fewer activists of the 1990s will be embittered, scruffy, antibusiness street fighters. AS AN EXAMPLE of the new breed, consider Allen Hershkowitz, who freely drops the names of his CEO acquaintances. As a solid-waste-disposal expert at the litigious Natural Resources Defense Council, Hershkowitz has won many legal battles with business. Now high-ranking executives of major companies regularly make the pilgrimage to his office in the elegant, airy, and amply funded New York City headquarters of NRDC, coming to him lest he go after them. As he explains, ‘They come in here to see what they’ve got to cover their asses on. ‘The cocky 34-year-old Ph.D., who serves as an adviser to banks and Shearson Lehman Hutton, among others, elaborates, ‘My primary motivation is environmental protection. And if it costs more, so be it. If Procter & Gamble can’t live with that, somebody else will. But I’ll tell you, Procter & Gamble is trying hard to live with it. ‘Still, for all his militancy, Hershkowitz is no fanatic or utopian. He understands that a perfect world can’t be achieved and doesn’t hesitate to talk of trade-offs: ‘Hey, civilization has its costs. We’re trying to reduce them, but we can’t eliminate them.’

 

Environmentalists of this stripe will increasingly show up even within companies. William Bishop, Procter & Gamble’s top environmental scientist, was an organizer of Earth Day in 1970 and is a member of the Sierra Club. One of his chief deputies belongs to Greenpeace. Eager to work with business, many environmentalists are moving from confrontation to the best kind of collaboration. In September an ad hoc combination of institutional investors controlling $150 billion of assets (including representatives of public pension funds) and environmental groups promulgated the Valdez Principles, named for the year’s most catalytic environmental accident. The principles ask companies to reduce waste, use resources prudently, market safe products, and take responsibility for past harm. They also call for an environmentalist on each corporate board and an annual public audit of a company’s environmental progress. The group asked corporations to subscribe to the principles, with the implicit suggestion that investments could eventually be contingent on compliance. Companies already engaged in friendly discussions included DuPont, specialty-chemical maker H.B. Fuller, and Polaroid, among others.

 

Earth Day 1990, scheduled for April 22, the 20th anniversary of the first such event, is becoming a veritable biz-fest. ‘We’re really interested in working with companies that have a good record,’ says Earth Day Chairman Denis Hayes, who predicts that 100 million people will take part one way or another. Apple Computer and Hewlett-Packard have donated equipment. Shaklee, the personal and household products company, paid $50,000 to be the first official corporate sponsor. Even the Chemical Manufacturers Association is getting in on the act, preparing a list of 101 ways its members can participate. The more than 1,000 Earth Day affiliate groups in 120 countries propose to shake up politicians worldwide and launch a decade of activism. THE MESSAGE that leading environmentalists are sending, and progressive companies are receiving, is that eco-responsibility will be good for business. Says Gray Davis, California’s state controller, who helped draft the Valdez Principles and who sits on the boards of two public pension funds with total assets of $90 billion: ‘Given the increasing regulation and public concern, there’s no question that companies will eventually have to change their ways. The first kid on the block to embrace these principles will increase market share and profit substantially.'”

The primary NGOs involved in the Valdez Principles from inception were the Sierra Club, The National Audubon Society and the National Wildlife Federation. The necessity of the “environmental movement” as the face and foundation of Ceres cannot be understated. In 1989 it was well understood by all players that NGOs were very much perceived as legitimate in the eyes of the public. The non-profit industrial complex was perhaps the only entity in the position of lending the much needed legitimacy and credibility that could mollify the public and allow the corporate world to continue their raping and pillaging, unregulated, under voluntary compliance. And while there is little doubt that well-intentioned individuals with sincere intentions were present in the formation of Ceres (as the corporate watchdog), many such “activists” will never admit to themselves that they are enablers of the very systems collectively destroying us. There is no acceptable excuse for such lack of judgement and foresight – for if it is ignorance, it is willful. Privilege has a convenient way of convincing one’s self to be blind.

“The New York Times/CBS News poll regularly asks the public if ‘protecting the environment is so important that requirements and standards cannot be too high, and continuing environmental improvements must be made regardless of cost.’ In September 1981, 45% agreed and 42% disagreed with that plainly intemperate statement. Last June, 79% agreed and only 18% disagreed. For the first time, liberals and conservatives, Democrats and Republicans, profess concern for the environment in roughly equal numbers.” — ENVIRONMENTALISM: THE NEW CRUSADE, CNNMoney Fortune, February 12, 1990

The Valdez Principles, which morphed into the completely watered down Ceres Principles, became the perfect antidote to appease an outraged populace. Corporations could breathe a sigh of relief for a continued voluntary system of corporate self governance – freshly laundered in a light green wash. At a time when public support for environmental protection was unprecedented, restrictive federal regulation power would be avoided. Corporate supremacy would continue apace.

CERES: Clearing House for the Institutionalization of Private Governance

 “It is high time that myths were called what they are. They are stories which may help explain our feelings but they are stories nonetheless and they do us no good.” — Margaret Kimberley

The CERES “Sustainable Governance Project” (SGP) was officially announced to the public in Washington, DC, 2002. The non-profit industrial complex was and continues to be an instrumental tool in building public acceptance for expansion of neoliberal policies. Hence a key focus of SGP in 2001 (prior to the official launch) was “expanding collaboration with climate change experts at groups such as The National Wildlife Federation, Natural Resources Defense Council, Redefining Progress, Sierra Club, Union of Concerned Scientists, World Wildlife Fund, and many others.” (Source: 2001 Annual Report) Jump forward to 2013 and the Ceres network includes over 130 NGOs.

Today, Ceres serves as the underwriter and clearinghouse for the institutionalization of private governance. Such transformation is now well under way and evolving as witnessed under the guise of the “green economy.” Such strategy is calculated and requires tactical execution. For such transformation to be successful, key critical elements must coalesce: the real or perceived (manufactured/purposeful) decline of public regulatory power; the appearance of “civil society” (self-appointed NGOs) to emanate a patina of legitimacy, credibility and trust; the perception of “caring” corporations (see “Who Cares Wins“); and lastly, media to disseminate the compiled elements in endless waves. When these elements coalesce seamlessly, fertile ground is laid for private regulatory institutions to emerge. By stressing the “risks” (i.e. water scarcity, crumbling infrastructure, etc.) Ceres successfully lays the groundwork for corporate takeover of goods, services and now ecosystems.

The Ceres Network Companies (the first pillar) make up the crème de le crème (approx. 70 corporations) of the corporate world. Examples include Citi, Bloomberg, Coca-Cola, Ford Motor Company, General Motors, Suncor and Virgin. The Ceres Coalition (the second pillar) is comprised of more than 130 institutional investors, environmental and “social advocacy” groups, and public interest organizations. Examples of coalition members are Sierra Club, Friends of the Earth, Rockefeller Financial Asset Management, NRDC, World Wildlife Fund, Rainforest Action Network, Service Employees International Union (SEIU) (a founder of Avaaz) and The Carbon Neutral Company.

 

Image above: Just a few of the 2009 and 2013 Ceres Conference Sponsors.

The Ceres Coalition represents: the Ceres Network Companies, Investor Network on Climate Risk (INCR) (publicly launched in November 2003 at the first Institutional Investor Summit on Climate Risk held at the United Nations) and Business for Innovative Climate & Energy Policy (BICEP: a coalition of more than 20 leading consumer brand corporations.) [Ceres Membership Requirements] [3]

“Ceres is a national network of over [130*] investors, environmental organizations and other public interest groups working with companies and the capital markets to address sustainability challenges such as global climate change. Coalition members serve on our board of directors, participate on company stakeholder teams and engage with the Wall Street community to incorporate social and environmental costs into their research practices. More than [100*] companies worldwide, many of them Fortune 500 firms, make up the Ceres Network of Companies.” [4] [*Updated to reflect current status]

The network of Ceres companies represents a broad range of corporate interests, including oil and gas, electric utilities, and financial services. More than one-third of the company members are in the Fortune 500. Members include McDonalds Corporations, Bank of America Corporation, PG&E Corporation, Citi Bank, Ford Motor Company, General Motors, Nike, PepsiCo, Suncor, Sunoco, Coca-Cola, Walt Disney, Virgin America, and Time Warner, to name just a few. Ceres has close ties with high-level leaders at the New York Stock Exchange, United Nations, World Economic Forum, Clinton Global Initiative, American Accounting Association, the American Bar Association and many of the world’s most powerful corporations. The forté of Ceres is briefing/advising powerful corporate boards, from Nike to American Electric Power, on risk and opportunity.

In addition to working with investors in the Ceres Coalition, Ceres directs the Investor Network on Climate Risk (INCR):

“INCR members, whose collective assets total about $[11*] trillion, include many of the world’s largest pension funds and asset managers.” [*Updated to reflect current status]

INCR has grown from 10 institutional investors managing $600 billion (2003) to 100 institutional investors managing more than $11 trillion in assets (2012).

In 1997 CERES launched the Global Reporting Initiative (GRI), now the de facto international standard for corporate voluntary sustainability reporting implemented by more than 1,800 corporations worldwide.

Benefits for corporations adopting GRI “standards” included/include guideline tools for “brand and reputation enhancement, differentiation in the marketplace and protection from brand erosion resulting from the actions of suppliers or competitors, networking and communications.” [Source] Since releasing its first Reporting Guidelines in 2000, its global network has grown to more than 600 organizational stakeholders and over 30,000 people representing different sectors and constituencies. GRI has also developed key strategic partnerships with the United Nations Environment Programme, the UN Global Compact, the Organization for Economic Cooperation and Development, and the International Organization for Standardization. [Source]

Mindy Lubber is the president of Ceres (2012) and a founding board member of the organization. She also directs Ceres’ INCR. Mindy Lubber’s blog “Sustainable Capitalism” is integrated with Forbes. Lubber is a contributing blogger for Huffington Post (acquired by Time Warner in 2011) and Forbes. Lubber has been honored by the United Nations as one of the “World’s Top Leaders of Change.” (Other award winners were the corporations Coca-Cola, Nike, Walmart and Reebok). Lubber was named one of “The 100 Most Influential People in Corporate Governance” by Directorship magazine and is a recipient of the Skoll Award for Social Entrepreneurship.

Skeletons (and Skolls) in the Ceres/1Sky Closet

Photo [Source: Skoll Foundation]: Green capitalist Al Gore with (left to right) Chris Fox of Ceres, Gillian Caldwell of 1Sky (350.org officially merged with 1Sky in 2011), Sally Osberg of the Skoll Foundation and Alessandro Galli of Global Footprint Network.

In 2009, 1Sky’s campaign director, Gillian Caldwell, a lawyer by training, was paid $203,620 (US) through the Rockefeller Family Fund. Although McKibben often refers to 350.org/1Sky as a “scruffy little outfit” – a salary of more than $200,000 is hardly typical of a legitimate grassroots organization.

In the Dec 3, 2009 article Prepping for Copenhagen as found on the Skoll Foundation website, the author reports, “The Skoll Foundation, along with a number of Skoll social entrepreneurs and partners, will be participating in the Copenhagen meetings on climate change later this month. Reflecting the high caliber of environmental leaders in the Skoll portfolio, some 10 Skoll social entrepreneurs and/or their organizations will be at Copenhagen: ACORE, Amazon Conservation Team, BioRegional Development Group, Ceres, EcoPeace/Friends of the Earth Middle East, Fundacion Gaia, Global Footprint Network, Health Care Without Harm, IDE-India, and Gillian Caldwell (formerly of Witness), representing 1Sky.” [Emphasis added.]

In the December 15, 2009 article More from the Ground in Copenhagen, also featured on the Skoll Foundation website, Skoll CEO Sally Osberg reports:

 Just a couple of highlights from the Climate Leaders’ Summit: Leadership on climate change – both moral and real – is coming from the sub-nation state levels and small countries.

What Osberg neglects to report is the fact that these very states were deliberately and grossly undermined by the non-profit industrial complex, with corporate TckTckTck, 350.org(1Sky) and Avaaz at the helm of the elitist fifth column. [Further reading: The Most Important COP Briefing That No One Ever Heard | Truth, Lies, Racism & Omnicide | Who Really Leads on the Environment? The “Movement” Versus Evo Morales]

 Who Cares Wins

 “To address the tough environmental and social issues facing global corporations today, we need to hear from a diverse group of stakeholders who challenge us to innovate and operate in a sustainable manner. No one has access to such a vast network of valuable, independent input as Ceres.” — Indra Nooyi, Chairman and CEO, PepsiCo

It is clear why branded agencies such as 350.org, SumofUs, Avaaz et al, who dominate social media, are heavily financed (and in many cases were created by) the oligarchs. Who Cares Wins – The Rise of the Caring Corporation, by David Jones, founder of One Young World, (recently a featured speaker at the 2013 World Form on Natural Capital), makes the case that “social media and corporate social responsibility are not two separate subjects; rather, they are intrinsically interlinked. Businesses that embrace the new rules are set to both make more money and become forces for good in the world.”

“Grow Through Karma Off-Setting: Consumers will actively buy from companies who are good, so they feel that they themselves don’t have to personally undertake social projects, as they have done good by making their purchase with you. Good brands provide a moral alibi for buying.” — Who Cares Wins – The Rise of the Caring Corporation, by David Jones, Global Chief Executive, Havas Worldwide, Creator of the “TckTckTck” campaign and Co-founder of One Young World.

Those born into today’s “young world” are indiscriminately lusted after and seduced by predatory marketing agencies bankrolled by the world’s most powerful corporations and oligarchs, via their foundations. Thus, in stealth synchronicity, the brilliant (albeit pathological) sycophants have created a world where corporate pedophilia runs rampant and indoctrination of youth is perfected and normalized. One cannot deny such a virtuoso performance. Nor can one deny the profound repercussions of such vulturesque exploitation. For adults who willingly offer up their children as sacrificial lambs to appease the corporate gods, denial must be considered the preferred opium of the 21^st century.

The name of the game is this: Corporations present themselves as humble and caring elements integral to society with a fierce determination to “do better.” Rather than refusing to comply with ethical environmental and social conduct, which only serves to tarnish brand image, the corporations embrace and welcome all criticisms. This stratagem is made even more effective when CEOs unabashedly take the first opportunity in any given situation to point out the harmful impacts of their industry, articulated with deep concern, followed by a laundry list of all the magnificent things the corporation is looking at for the future that they believe will alleviate environmental degradation and unbridled exploitation.

 

Next: Part III

 

[Cory Morningstar is an independent investigative journalist, writer and environmental activist, focusing on global ecological collapse and political analysis of the non-profit industrial complex. She resides in Canada. Her recent writings can be found on Wrong Kind of Green, The Art of Annihilation, Counterpunch, Political Context, Canadians for Action on Climate Change and Countercurrents. Her writing has also been published by Bolivia Rising and Cambio, the official newspaper of the Plurinational State of Bolivia. You can follow her on twitter @elleprovocateur]

 

 

EndNotes:

[1] The Valdez Principles: In September 1989, the Coalition for Environmentally Responsible Economies set forth the following ten broad principles for evaluating corporate activities that directly or indirectly affect the biosphere.

1. Protection of the Biosphere

We will minimize and strive to eliminate the release of any pollutant that may cause environmental damage to air, water, or earth or its inhabitants. We will safeguard habitats in rivers, lakes, wetlands, coastal zones and oceans and will minimize contributing to global warming, depletion of the ozone layer, acid rain or smog.

2. Sustainable Use of Natural Resources

We will make sustainable use of renewable resources, such as water, soils and forests. We will conserve nonrenewable natural resources through efficient use and careful planning. We will protect wildlife habitat, open spaces and wilderness, while preserving biodiversity.

3. Reduction and Disposal of Waste

We will minimize the creation of waste, especially hazardous waste, and wherever possible recycle materials. We will dispose of all wastes through safe and responsible methods.

4. Wise Use of Energy

We will make every effort to use environmentally safe and sustainable energy sources to meet our needs. We will invest in improved energy efficiency and conservation in our operations. We will maximize the energy efficiency of products we produce or sell.

5. Risk Reduction

We will minimize the environmental, health and safety risks to our employees and the communities in which we operate by employing safe technologies and operating procedures and by being constantly prepared for emergencies.

6. Marketing of Safe Products and Services

We will sell products or services that minimize adverse environmental impacts and that are safe as consumers commonly use them. We will inform consumers of the environmental impacts of our products or services.

7. Damage Compensation

We will take responsibility for any harm we cause to the environment by making every effort to fully restore the environment and to compensate those persons who are adversely affected.

8. Disclosure

We will disclose to our employees and to the public incidents relating to our operations that cause environmental harm or pose health or safety hazards. We will disclose potential environmental, health or safety hazards posed by our operations, and we will not take any action against employees who report any condition that creates a danger to the environment or poses health and safety hazards.

9. Environmental Directors and Managers

At least one member of the Board of Directors will be a person qualified to represent environmental interests. We will commit management resources to implement these Principles, including the funding of an office of vice president for environmental affairs or an equivalent executive position, reporting directly to the CEO, to monitor and report upon our implementation efforts.

10. Assessment and Annual Audit

We will conduct and make public an annual self-evaluation of our progress in implementing these Principles and in complying with all applicable laws and regulations throughout our worldwide operations. We will work toward the timely creation of independent environmental audit procedures which we will complete annually and make available to the public.

[Source: A New Agenda for Managers, The Challenge of Sustainability]

[2] Ceres Principles:

1. PROTECTION OF THE BIOSPHERE: We will reduce and make continual progress toward eliminating the release of any substance that may cause environmental damage to the air, water, or the earth or its inhabitants. We will safeguard all habitats affected by our operations and will protect open spaces and wilderness, while preserving biodiversity.

2. SUSTAINABLE USE OF NATURAL RESOURCES: We will make sustainable use of renewable natural resources, such as water, soils and forests. We will conserve non-renewable natural resources through efficient use and careful planning.

3. REDUCTION AND DISPOSAL OF WASTES: We will reduce and where possible eliminate waste through source reduction and recycling. All waste will be handled and disposed of through safe and responsible methods.

4. ENERGY CONSERVATION: We will conserve energy and improve the energy efficiency of our internal operations and of the goods and services we sell. We will make every effort to use environmentally safe and sustainable energy sources.

5. RISK REDUCTION: We will strive to minimize the environmental, health and safety risks to our employees and the communities in which we operate through safe technologies, facilities and operating procedures, and by being prepared for emergencies.

6. SAFE PRODUCTS AND SERVICES: We will reduce and where possible eliminate the use, manufacture or sale of products and services that cause environmental damage or health or safety hazards. We will inform our customers of the environmental impacts of our products or services and try to correct unsafe use.

7. ENVIRONMENTAL RESTORATION: We will promptly and responsibly correct conditions we have caused that endanger health, safety or the environment. To the extent feasible, we will redress injuries we have caused to persons or damage we have caused to the environment and will restore the environment.

8. INFORMING THE PUBLIC: We will inform in a timely manner everyone who may be affected by conditions caused by our company that might endanger health, safety or the environment. We will regularly seek advice and counsel through dialogue with persons in communities near our facilities. We will not take any action against employees for reporting dangerous incidents or conditions to management or to appropriate authorities.

9. MANAGEMENT COMMITMENT: We will implement these Principles and sustain a process that ensures that the Board of Directors and Chief Executive Officer are fully informed about pertinent environmental issues and are fully responsible for environmental policy. In selecting our Board of Directors, we will consider demonstrated environmental commitment as a factor.

10. AUDITS AND REPORTS: We will support the timely creation of generally accepted environmental audit procedures. We will annually complete the CERES Report, which will be made available to the public.

[3] [Ceres Membership Requirements: All coalition members must be approved by the Ceres Board of Directors. All coalition members pay annual membership dues that are scaled from $50 to $2,000, depending upon the size and type (non-profit, grant making, or investment firm) of the organization. Coalition members are also strongly encouraged to participate in Ceres’ engagement work, including through our multi-stakeholder dialogue processes, investor engagements and other opportunities.] “The primary direct costs of endorsing the CERES Principles are the payment of annual dues and the completion of the annual CERES report form. The dues for a company differ according to the size of the company, but, for a large multinational corporation, are usually in the range of $50,000 dollars a year. The costs associated with dues are not prohibitive considering the size and the budget of the companies.” [Source.]

[4] “Once companies officially join Ceres, they gain access to exclusive benefits, such as a customized stakeholder advisory team that provides advice on sustainability reporting, strategy, policies and specific initiatives.”