Can You Leverage a Social Enterprise in the Era of Crowdfunding?

by Ron Ben-Zeev*

That is the question I asked myself a few months ago. I was listening to Brian Meece, Founder and CEO of RocketHub, the third largest such platform in the U.S., who was speaking at a Start-up Weekend event I co-organized in Orlando, Florida.

Crowd funding or crowdfunding (alternately crowd financing, equity crowdfunding, or hyper funding) describes the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations.

As Brian was speaking, my mind was spinning in many directions. Can this help my start-up? How? Can the funds raised make a true difference or is the potential exposure enough?

Of Climate Change and International Policy Architecture

by Samantha Guidon*

Robert Stavins, Albert Pratt Professor of Business and Government, Harvard University. Courtesy of Stephanie Nam/Penn Law.

On February 27, 2013, Harvard University’s Albert Pratt Professor of Business and Government Robert Stavins came to Penn for a presentation entitled “Climate Change, the IPCC, and International Policy Architecture” as a part of the Risk Regulation Seminar Series, an initiative jointly sponsored by the Penn Program on Regulation, the Wharton Risk Management & Decision Processes Center, and the Wharton Initiative for Global Environmental Leadership (Wharton IGEL).

Challenges and Opportunities of Investing in Cleantech and Renewable Energy

By Zhan Zhou*

Based on the database of the Cleantech Group, there are about 19,200 cleantech companies in the world, of which over 1/3  are based in the United States.[I] Despite some minor setbacks, there is no doubt that cleantech has become one of the most targeted sectors for both public and private investment. A few numbers can shed light on the fact that the cleantech industry has emerged to be a fast-growing industry of great political and environmental significance:

• During 2012 alone, cleantech companies around the globe raised $6.56 billion of venture capital across 732 deals [II]
• For the global Foreign Direct Investment (FDI), the cleantech sector ranked as the second largest sector after oil and gas by attracting $12 billion from the global FDI into the U.S. in 2011, making it the fastest growth sector for the past decade [III]
• Through July 20^th, 2012, the §1603 American Recovery and Reinvestment Act program had awarded $13.0 billion to nearly 45,000 renewable energy projects [IV]

Market Challenges
With a seemingly growing appetite for investment in cleantech, some important market challenges lie ahead.

Clean Energy Challenges and Opportunities for Investing in Sustainability

by Sharon Muli*

Jason Baxter of Drexel University

If the Earth had six massive solar installations measuring 200 miles long by 200 miles wide filled with 10% efficient solar cells, it could generate enough energy to meet global demand.  While this is a powerful vision that demonstrates the high potential of solar power, it sounds like a rather absurd thought. Yet this image raises a fundamental question; how can we take better advantage of solar power?

This issue was discussed during the Clean Energy and Sustainability Investing Workshop at the Wharton Social Impact Conference on November 16, 2012, organized by the Wharton Social Impact Initiative.  This year, the theme of the conference was “The Finance of Impact:  Innovative Approaches to Social Change”. The discussion of photovoltaics (PV) emerged as a clear example of how financial investments and technological development can lead to more sustainable change.

Water: Emerging Risks and Opportunities Summit

by Samantha Guidon*

On February 8, 2013, with an imminent Winter Storm Nemo on the horizon, over 250 industry leaders and key players in the water sector came together at Goldman Sachs in New York City to begin the dialogue on addressing water risks throughout the country. Students from the Master of Environmental Studies at the University of Pennsylvania joined the Wharton Initiative for Global Environmental Leadership (Wharton IGEL) team in attending this event to gain key perspectives from leaders in the water sector. Entitled “Water: Emerging Risks and Opportunities Summit,” the conference identified areas in need of improvement and discussed opportunities from various points of view. A welcoming address from David Solomon, Co-Head of the Investment Banking Division at Goldman Sachs, established the overall goals of bringing together capital, technology, and policy in order to determine best management practices within the water sector.

Five Insights from ACORE’s National Renewable Energy Policy Forum

by Candice D. McLeod*

On February 6^th, the American Council on Renewable Energy (ACORE) held its 10^th annual Renewable Energy Policy Forum on Capitol Hill. The event featured a host of industry, financial and government leaders, who spent the day discussing the progress of the renewable energy industry, from the industry’s current purgatorial state due to impending policy deadlines to the potential implications of the current fiscal and partisan climates.

The overall themes were clear – more financing options for renewables, renewable energy policy stability, and China setting the global rhythm.

Here are five main insights drawn from the forum:

1. Renewable energy markets continue to grow significantly. Perhaps we should stop referring to them as “alternative sources” of energy
2. Economic security -keep your eye on Iowa and rural America
3. More policy stability, please
4. More financing options -MLPs  & REITs
5. Don’t throw the baby out with the bathwater

1. Renewable energy markets continue to grow significantly. Perhaps we should stop referring to them as “alternative sources” of energy

John R. Norris, Commissioner, U.S. Federal Energy Regulatory Commission (FERC) opened the panel Renewable Energy Market Growth with the statement, “[if] it wasn’t for an economy that’s walking with a limp and a dramatic decrease in natural gas prices, the renewable energy market would be twice the size.”

UBS Q-series Inflection Points: Towards Sustainability

*by Candice D. McLeod

Last month, UBS hosted Inflection Points: Towards Sustainability at the Bloomberg headquarters, as part of their annual Q-series initiative. The Q in Q-series stands for asking questions, particularly tough questions, as noted by Penn alumna and UBS Head of Global Sector Research, Erika Karp, who helmed the event.

Erika Karp, UBS, Head of Global Sector Research

The event’s main tough question: How do companies not only identify the inflection points in the their industry –“defined as accelerating rates of system-wide change that alter the manner in which industry leaders think and act”- , but also leverage these changes into driving sales and profits?

Promoting Sustainability by Not Mentioning Sustainability

Post by Sharon Muli*

In some situations, the best way to spread sustainability is by not mentioning it.   More specifically, by not talking about sustainability using the language of sustainability.

I heard about the experiences of several business leaders in sustainability while attending the New Metrics of Sustainability in Business Conference  on September 27-28th, 2012.  This conference, hosted by Sustainable Brands and Wharton’s Initiative for Global Environmental Leadership (IGEL), sparked engaging discussions among those in a wide range of roles who talk, or don’t talk, about sustainability. Below are some of the main points that emerged from the conference and participant discussions.

Consider your audience and the situation
As an individual interested in sustainability, a student studying sustainability, or an employee in a sustainability role, you would think that talking about it be beneficial. That may not always the best approach, however.  It is important to consider the audience, the situation, and the intended outcome of a conversation.

IGEL’s Greening the Supply Chain Conference Report

(Post by Caroline D’Angelo, IGEL’s Communications Coordinator and editor and Staff Writer for Oikos International) The Initiative for Global Environmental Leadership’s annual conference-workshop on April 26, 2012 was themed around “Greening the Supply Chain: Best Business Practices and Future Trends.” The conference featured presenters from corporations and non-governmental organizations who spoke about sustainable management of corporate supply chains. From technology to transportation, and deforestation to chemicals, presenters urged the audience to think of sustainable supply chains as a smart business move. (Read an overview of the best business practices from the conference from Student Reporter Sharon Muli.) This post provides an overview of the conference presentations and provides links to more in-depth discussion, interviews and slides.

Banking on Scarcity: Risks and Opportunities for Investment Funds in the Water Sector

Author Michael McCullough is a graduate of the University of Pennsylvania’s Department of Earth and Environmental Sciences. This is the introduction to his paper in the IGEL Student Research Briefs series. Click here to read the whole paper>> Opinions are those of the authors and not of Penn, Wharton or IGEL.

Water is an increasingly scarce resource due to booming population growth, increased demand and climate change.  Many investors see global water scarcity as an investment opportunity. This ever widening gap between supply and mounting global demand is an obvious selling point for some investment funds eager to acquire an under-valued commodity.  Unlike oil, gold or copper commodities, however, the basic supply-demand calculus will not necessarily yield predictable returns on water because of political risks inherent in charging increasing prices for a life-sustaining service. A successful strategy will seek to provide cost-effective technology enabling consumers to receive and enjoy the same level of water service while consuming significantly less water.¹  Additionally, water-inefficient production processes, primarily in the agricultural sector account for the vast majority of water consumption, meaning gains in efficiency can do much to close the supply shortfall if increasing prices incentivize efficiency (Ghosh 2009; 2030 Water Resources Group 2009).