Dr.BozesanOnIntegralventuresITCConference2013

© 2012 AQAL Investing. All rights reserved.
1
1

© 2012 AQAL INVESTING. All rights reserved.
ITC
2013,
San
Francisco

Dr.
Mariana
Bozesan

Club
of
Rome
Full
Interna@onal
Member

Senior
Research
Fellow.
Humboldt-‐Viadrina
School
of
Governance,
Berlin

President
&
Founder,
AQAL
Inves@ng;
Partner,
AQAL
Capital,
Munich

Integral
Venture
Inves@ng

An
Inclusive
and
Sustainable
Model
for

Inves@ng
in
our
Future

© 2012 AQAL INVESTING. All rights reserved.© 2012 AQAL INVESTING. All rights reserved.
Is
“humanity
is
stupid
enough
not
to
do

what
is
perfectly
doable”
(Dr.
Randers)

to
prevent
ecological
DISASTER?

3

Mariana
Bozesan

• M.S.
Degree
in
Computer
Science
&
AI

– Educated
at
Stanford
University
and
KIT
(Karlsruhe

Ins@tute
of
Technology)
in
Germany

• Ph.D.
in
Psychology,
ITP
Palo
Alto
California

• Club
of
Rome,
full
interna@onal
member

• Serial
Entrepreneur:
founded
5
companies

• Philanthropist:
Suppor@ng
>
38
NGOs
world-‐wide

• Investor:
18
years
of
high-‐tech,
bio-‐tech,
&
clean-‐
tech
inves@ng
experience

Ø My
MOTTO:
PARITY
OF
PEOPLE,
PLANET,
PROFIT,

with
PASSION,
and
PURPOSE

3

4

Outcomes
Today

1.  What
is
the
global
context
and
the
main

driving
force
today?

2.  What
are
the
current
developments
toward

sustainable
ﬁnance
and
economics?

3.  Why
do
we
need
an
Integral
Inves@ng
Model

and
what
could
make
it
successful?

4

5

Outcomes
Today

1.  What
is
the
global
context
and
the
main

driving
force
today?

5

6

The
financial
context

•  The
disaster
of
2007/2008
nearly
ruined
the
global

economic
system

– By
Oct.
2008,
about
$25
trillion
were
obliterated
from
the
value

of
stock
markets

•  What
started
with
an
ini@al
liquidity
crisis
lead
to

– The
disrup@on
of
capital
flows

– The
collapse
of
the
“too
big
to
fail”
financial
organiza@ons
incl.

Lehman
Bros.,
Fannie
Mae,
and
Freddy
Mac

– Severe
downturns
in
the
global
casino/stock
markets
world
wide

– Currency
crunches,
failure
of
major
businesses
,
global
recession

including
the
European
sovereign-‐debt
crisis
(Ireland,
Portugal,

Greece,
Spain,
Cyprus,
etc.)

– No
end
in
sight!

– Q:
How
sustainable
are
our
financial
and
economic
systems?

7

The
social
context

•  Real
estate
bubble
bursts,
foreclosures,
evic@ons
(USA,
Spain,

Ireland,
etc.)

•  Prolonged
unemployment
in
most
Western
countries

– 7.6%
USA,
12%
in
Europe
on
average

•  Increased
inequality
in
the
West

– USA
with
the
“most
millionaire
households”
in
the
world
followed

by
Japan,
China,
UK,
and
Germany

•  Growing
health
problems
physically,
mentally,
emo@onally

– Cancer,
overweight,
obesity,
depression,
asthma

•  Social
unrests:

– Occupy
movement,
Spanish
Indignados,
Greek
protest,
Arab

spring

Ø The
worst
social
consequences
since
the
Great
Depression

8

The
environmental
context

• We
con@nue
to
emit
twice
as
much
CO2
in
the

atmosphere
than
can
be
absorbed
by
our
forests

and
oceans
with
disastrous
consequences
for

the
earth’s
ecological
balance:

– Global
warming
at
accelerated
speed
can
lead
up
to

2-‐4
degrees
Celsius
in
this
century

– Ongoing
droughts

•  Water
is
becoming
more
important
than
petrol

– Ongoing
hurricanes,
ﬂoods,
rapid
mel@ng
of
polar
ice

caps
lead
to
the
raise
of
ocean
levels

– Irrecoverable
loss
of
bio
diversity

The
quiet
killer
and
driving

force
behind
destruc@on
is

Exponen@al
Growth

What
is
Exponen@al
Growth?

Most
decision
makers
do
not

get
it
un@l
it
is
much
much

much
to
late
to
respond

The
sage
and
the
Indian
king

13

The
sage
and
the
Indian
king

•  8
>
1+2+4=7

•  32
>
1+2+4+8+16=31

•  On
each
new
ﬁeld,
there
are

more
grains
of
rice
than
in
all

previous
ﬁelds
together

•  Exponen@al
growth
means
that

each
duplica0on
contains
a

larger
quan@ty
of
things
than
all

previous
quan00es
taken

together

Ø The
last
square
would
contain

9.223.372.036.854.780.000

grains
of
rice
that
would
cover

the
surface
of
today’s
India
with

more
than
1
meter
of
rice

The
pond
and
the
water
lilies

15

Exponen@al
popula@on
growth

220.000
people
are
born
per
day
(net)

16

Exponen@al
economic
growth

It
took
Europeans
1000
years,
the
UK
100
yrs.,
Germany
70
yrs.,
Japan
50
yrs.,
China

only
6
yrs
to
double
the
economic
output

China’s
resource
hunger
is
not
only
a
media
event

•  Its
GDP
has
doubled
6
@mes
since
1978

•  Un@l
2017,
China
will
need
more
resources
and
will
produce
more
goods
than
in
its

en@re
history
all
together!!!!!

17

Our
true
problem:
Lack
of
awareness
regarding

the
importance
of
exponen@al
growth

• With
every
duplica@on,
the
quan@ty
added
is

LARGER
than
the
en@re
compounded
previous

quan@ty

• The
megatrends
in
the
21st
century

– Exponen@al
popula@on
growth

– Exponen@al
economic
growth

– Exponen@al
consumer
growth:
in
40
years,
we
added
3

more
Billion
consumers

• We
have
reached
our
physical
Limits
to
Growth
on

our
planet

18

Drama@c
examples
of
exponen@al
growth

• Food
produc@on
and
water
usage

– We
already
have
an
acute
water
shortage
and
not

enough
agricultural
ﬁelds
for
food
produc@on

– The
need
for
food
and
potable
water
is
growing
at
2.5
%

p.a.,
which
will
double
in
28
years
from
now

Ø This
means
that
in
28
years
from
now
humanity
will

need
more
water
and
food
than
in
its
en@re

previous
history

Ø By
2035
we
will
need
another
earth
if
no
signiﬁcant

change
occurs!!!!

19

To
be
expected
by
2052
without
change*

•  World
GDP
will
be
forced
to
slow
down
due
to
resource

deple@on
and
realloca@on

•  World
popula@on
will
be
forced
to
peak
in
2040
at
9
Billion

•  CO2
emissions
will
increase
and
peak
in
2030
with
signiﬁcant

loss
of
bio
diversity,
massive
environmental
degrada@on
and

severe
climate
change

•  Global
temperature
will
pass
the
dangerous
threshold
of
+2

degrees
Celsius
with
terrible
climate
crisis
auer
2052

•  Increasing
polariza@on
economically,
socially,
and

environmentally
accompanied
with
massive
genera@on
conﬂict

•  Capitalism
and
slow
democracy
as
we
know
them
will
not
come

to
an
end
due
to
poli0cal
incompetence
and
short-‐sightedness

•  Investment
share
of
GDP
will
be
forced
to
increase
due
to

capital
deployment
toward
addressing
crises
AFTER
they
occur

Source:
Club
of
Rome
member
Prof.
Randers,
J.
(2012).
2052:
A
global
forecast
for
the
next
40
years.
White
River
Junc@on,
NJ:
Chelsea
Green

“Humanity
is
stupid
enough
not

to
do
what
is
perfectly
doable”

to
prevent
disaster,
Prof.
Randers

There
is
plenty
of
capital

available
to
solve
our
problems

We
need
global
convic@on
and
poli@cal

uniﬁca@on
to
transi@on
to
a
low

carbon
economy
and
into
the
solar
age

Why
I
am
an
op@mis@c

investor?

24

Outcomes
Today

1.  What
is
the
global
context
and
the
main

driving
force
for
growth
today?

2.  What
are
the
current
developments
toward

sustainable
ﬁnance
and
economics?

3.  Why
do
we
need
an
Integral
Inves@ng
Model

and
what
could
make
it
successful?

24

© 2013 AQAL Capital. Strictly Confidential. For qualified investors only.
25

Self
organizing
ini@a@ves

•  AVIVA
Corporate
Sustainability
Coali@on
($2
trillion)

– Request
to
UN
member
states
to
adhere
and
develop

regula@ons
for
global
framework
on
corporate
sustainability

repor@ng

– Intl.
policy
framework
for
company
disclosure,
transparency,

accountability,
responsibility,
incen@ves

•  Natural
Capital
Declara@on

– Commitment
of
the
financial
sector
toward
the
integra@on
of

natural
capital
(earth’s
assets
&
ecosystem
services)
criteria
into

financial
products
and
services

•  Interna@onal
Integrated
Repor@ng
Commivee
(IIRC)

•  Interna@onal
Stock
Exchange
Ini@a@ve:
43%
adop@on

•  The
Giving
Pledge,
GIIN,
incl.
self-‐organizing
family
offices,

TONIIC,
PYMWYMIC,
AQAL
Inves@ng,
etc.

Market
drivers

26

Global
Alliance
for
Banking
on
Values
Report*

•  Elimina@ng
the
myth

about
lower
returns

through

sustainability

•  Bever
returns
on

assets
than
regular

banks

•  Signiﬁcantly
higher

levels
of
growth
in

loans
and
deposits

•  Higher
and
bever

quality
capital

GSIFI=Global
Systemically

Important
Financial
Ins@tu@ons

*Source:
GABV.
(2012,
March).
Global
alliance
for
banking
on
values:
Strong,
straight
forward,
and
sustainable
banking.
Financial
capital
and

impact
metrics
of
value
based
banking.
Full
report.
March
2012.
Downloaded
May
15,
2013
from
hvp://www.gabv.org/wp-‐content/uploads/Full-‐
Report-‐GABV-‐v9d.pdf

We
can
only
achieve
what
we

measure

We
currently
measure
proﬁt

only

Proﬁt
only
–

Ouen
missing
the
opportuni@es

hidden
in
people,
planet,
and
joy

The
current
neo-‐classical

economic
model:
150
years
old

and
needs
to
be
recalibrated

Modern
socie@es
have
evolved

to
pluralis@c
levels

Financing,
business
structures,

and
economics

must
follow
suit

33

The
tradi@onal
inves@ng
model
is
outdated

33

Market
drivers

•  Focused
on
short-‐term
profit
maximiza@on
at
the
expense
of
long-‐
term
health
of
global
community,
culture,
environment,
ethics,
and

overall
human
happiness

•  Rely
on
extremely
complex
supply
chain
that
encourages

specula@ve
trading
and
become
increasingly
remote
from
the

needs
of
primary
beneficiaries

•  Are
locking
the
agents
into
lifestyle
dependent
on
high
earnings

and
can
lead
to
inappropriate
risk
taking
and
short
financial
return

to
maintain
reward
levels

•  Does
not
encourage
sustainable
results
due
to
its
incen@ve
and

remunera@on
structures

•  Lack
robust
measurement
criteria
to
measure
non-‐financial
data

(environmental,
social,
governance,
happiness,
etc.)

•  Tradi@onal
asset
managers
failed
to
develop
a
core
competency
in

alterna@ve
inves@ng
opportuni@es
including
impact
inves@ng
(SRI/
RI/ESG)

•  The
tradi@onal
Venture
Capital
model
is
“broken”*

Profit

TRADITIONAL

INVESTING

Profit
Metrics

WALL
STREET

BERKSHIRE-‐
HATHAWAY

KLEINER
PERKINS

SEQUOIA
CAPITAL

*Source:
Mulcahy,
D.
&
Weeks,
B.
&
Bradley,
H.
S.,
(2012,
May).
We
have
met
the
enemy
….
And
he
is
us:
Lessons
learned
from
twenty
years

of
the
Kauffman
FoundaHon’s
investments
in
venture
capital
funds
and
the
triumph
of
hope
over
experience.
Kauffman
Founda@on
Research

>=
10%
of
High
Net-‐Worth

Individuals
want
to
invest
with

their
values,
but
cannot

Why?

Because
innova@ve
ﬁnancial,

economics,
and
business

infrastructures
are
missing

Impact
Inves@ng
is
growing
but
is

fragmented

38

Impact
Inves@ng
is
growing
but
is

fragmented

Two
types
of
Investors*

•  Financial
(Profit)
First
Investors

– Pursue
the
op@miza@on
of
financial

returns
before
having
an
impact
floor

– Investors
“are
not
willing
to
accept

lower
than
market
returns
as
a
cost
to

op@mizing
social
or
environmental

goods,
although
they
s@ll
make
a

posi@ve
impact”

•  Impact
(People/Planet)
First
Investors

– Seek
to
op@mize
social
and

environmental
impact
with
a
financial

floor

– For
greater
impact,
investors
are
willing

to
accept
lower
than
market
financial

returns.

IMPACT

INVESTING

Sustainability
Metrics:

ESG

Triple
BoOom
Line

Profit

People

Planet

e.g.

GRAMEEN
BANK

TRIODOS
BANK

GLS
BANK

BANK
SARASIN

Market
drivers

*Defini@on
auer
(Eurosif,
2010,
p.
7)

39

Slow
transforma@on
example

Impact
Inves@ng
in
Europe
in
2009

*Source:
EUROSIF
SRI
Survey
2010

Market
drivers

13

23

33

89

242

242

306

312

396

411

1,043

1,851

Germany

Switzerland

Spain

Finland

Belgium

Denmark

Sweden

Italy

The
Netherlands

Norway

UK

France

0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000

European
Impact
Inves@ng
Assets
in
2009
in
Billion
Euros

(Source:
Eurosif
SRI
Survey
2010)

40

41

Global
Sustainable
Inves@ng
(SRI/RI)
is
growing*

•  Global
Sustainable
Investments

using
some
kind
of
ESG
criteria

reached
US$
13.6
trillion
(=21.8

%
of
total
AUM
in
2012)
with

–  Most
common
strategy
being

Nega@ve/exclusionary
screening,

US$
8.3
trillion
AuM

–  Norm-‐based
screening,
US$
3.0

trillion
AUM
mostly
Europe
(65%
of

known
SRI
AuM)

–  Posi@ve/best-‐in-‐class
screening
1.0

trillion
AuM,
mostly
US

–  Assets
u@lizing
ESG
integra@on
are

at
US$
6.2
trillion

Market
drivers

*Source:
The
Global
Sustainable
Investment
Alliance
(GSIA)

Report
2012,
hvp://gsiareview2012.gsi-‐alliance.org

•  Impact
Inves@ng
theme

investments
are
s@ll

fragmented
and

–  Compara@vely
small
at
US$

89.0
billion

•  Sustainability
theme

investments

–  Are
also
compara@vely
small

at
USD
83.0
billion

The
integra@on
between

Tradi@onal
Inves@ng
and

Impact
Inves@ng
is
missing

43

44

Outcomes
Today

1.  What
is
the
global
context
and
the
main

driving
force
for
growth
today?

2.  What
are
the
current
developments
toward

sustainable
ﬁnance
and
economics?

3.  Why
do
we
need
an
Integral
Inves@ng
Model

and
what
could
make
it
successful?

44

Integral
Inves@ng
could

provide
the
necessary

integra@on

Integral
Inves@ng
is

an
investment
model
based
on

human
evolu@on

47

Leveraging
human
consciousness
at
later

stages
of
development

RATIONAL

INTELLIGENCE

THE

TRUE

-‐
SCIENCE
-‐

ENLIGHTENMENT

ERA

DEMOCRACY

NATION
STATES

MODERN
MEDICINE

SPACE
SHUTTLE

CIVIL
RIGHTS
&

GREEN
MOVEMENT

FEMINISM

SOCIAL
BUSINESS

CULTURAL

CREATIVES:
25-‐30%

EMOTIONAL

ART,
VALUES,
MORALS,

ETHICS

THE

BEAUTIFUL

-‐
ART
-‐

Strategy

INTEGRALLY
ACTING
HUMANS

INTEGRATING
HUMANITY’S
VALUE
SPHERES

“DeMedici
Eﬀect”
in
the
21st
century

THE

BEAUTIFUL

-‐
ART
-‐

THE

GOOD

-‐
MORALS
-‐

THE

TRUE

-‐
SCIENCE
-‐

48

Integral
Metrics

Planet

People

Profit

Ethics,
Ego,

Emo0ons
&

Consciousness

Behavior

Exterior
Interior

Individual
Collec@ve

Culture

&

Morals

INTEGRAL
INVESTING

Genera@on
Investment
Management

AQAL
Inves@ng,
Natural
Inves@ng

Integra@ng
tradi@onal
and
impact
inves@ng

Profit

TRADITIONAL

INVESTING

Profit
Metrics

WALL
STREET

GOLDMAN
SACHS

JP
MORGAN

LEHMAN
BROTHERS

KLEINER
PERKINS

SEQUOIA
CAPITAL

IMPACT

INVESTING

Profit

People

Planet

Sustainability
Metrics

ESG,
IRIS,
SAM

Triple
BoOom
Line

Grameen
Bank

Triodos
Bank

GLS

Sarasin

AQAL
INVESTING
is
based
on
Ken
Wilber’s
Integral
Model;
Ken
Wilber
is
endorsed
by
Nobel
Prize
laureate
Al
Gore,
and
Bill

&
Hilary
Clinton.

Wilber’s
theory
is
widely
applied
in
science,
poli@cs,
economics,
educa@on,
medicine,
and
business
including
McKinsey
and
Company;

Source:
Wilber,
K.
(2000).
A
theory
of
everything:
An
integral
vision
for
business,
poliHcs,
science,
and
spirituality.
Boston:
Shambhala.

Strategy

49

Exterior
Interior

PLANET

PEOPLE

PROFIT

ETHICS

EGO

EMOTIONS

CONSCIOUSNESS

BEHAVIOR
Individual
Collec@ve

CULTURE
&

MORALS

INTEGRAL
CAPITAL

HETEROGENOUS
CAPITAL

Genera@on,
Capital
Missions
Company,
AQAL

Inves@ng,
Natural
Inves@ng

Integra@ng
capital

regular
-‐
government
-‐
philanthropic
-‐
dona@ons

PROFIT

TRADITIONAL

CAPITAL

Debt
&
Equity

WALL
STREET

GOLDMAN
SACHS

JP
MORGAN

KLEINER
PERKINS

PHILANTHROPIC

CAPITAL

Dona@ons

PEOPLE

PLANET

BERTELSMANN

ROCKEFELLER

FOUNDATIONS

Strategy

GOVERNMENT
CAPITAL

Debt,
Equity,
Grants

PUBLIC-‐PRIVATE
PARTNERSHIPS

German
Kreditanstalt
für
Wiederau{au
(KfW),
European
Investment
Fund
(EIF),
USAID

50

SOCIAL

ENVIRONMENTAL

PROFIT

ETHICS

EGO

EMOTIONS

CONSCIOUSNESS

BEHAVIOR

Exterior
Interior

Individual
Collec@ve

CULTURE
&

MORALS

PROFIT

TRADITIONAL

BUSINESS

SOCIAL

BUSINESS

INTEGRALLY
ACTING

BUSINESSES

DM,
Puma,
Whole
Foods,

Patagonia,
REI

Superior
deal
ﬂow
and

integral
metrics
for
business
integraliza@on

SOCIAL

ENVIRONMENTAL

ENRON

WALL
STREET

BP

MONSANTO

PHILLIP
MORRIS

GILLETTE

McKinsey
&
Co.

GRAMEEN
BANK

LGT
VENTURE

PHILANTHROPY

UBS
GLOBAL

PHILANTHROPY

SKOLL
GLOBAL

THREATS
FUND

Strategy

What
is
the
evidence
that
it
works?

52

e.g.
Whole
Foods:

+40%

Higher
ROI
than
FoEs

over
10
years

(1800%
shareholder

value
1995–2006)

Sample:
8.0x

higher
ROI
than
market

average
(S&P
500)
over

10
years;
and
-‐

3.1x

higher

than
GGCs

3.0x

higher
ROI
than

market
average

(S&P
500)
over

15
years

GOOD
TO
GREAT
COMPANIES

(“GGC”s)
-‐
2002

• Nucor;
Kimberly-‐Clark

• Kroger;
Walgreens

• Wells
Fargo;
Gilleve

ESG
&
INTEGRALLY

ACTING
BUSINESSES

• The
Container
Store;
REI

• Whole
Foods;
Trader

Joe’s;
Patagonia;
DM

• Stoneyﬁeld
Farms

FIRMS
OF
ENDEARMENT

(“FoE”s)
-‐
2007

• Patagonia;
Amazon

• Southwest
Airlines

• IKEA;
BMW;
eBay

• Google;
AVEDA

*Source:
Sisodia,
R.,
Sheth,
J.,
Wolfe,
D.B.
(2007).
New
Jersey:
Wharton
School,
p.
16

Sample
evidence:
Risk
reduc@on
&
inclusive
sustainability

already
visible
with
ESG
&
integrally
ac@ng
companies

Sample
Evidence

Results
of
the
ongoing
ShiS
to
Conscious
Capitalism

53

Evidence:
Investment
return
in
detail*

15
Year
10
Year
5
Year
3
Year

Cumula0ve
Annualized
Cumula0ve
Annualized
Cumula0ve
Annualized
Cumula0ve
Annualized

FOE
Return
1646.1%
21.0%
254.4%
13.5%
56.4%
9.4%
77.4%
21.1%

GTG
Return
177.5%
7.0%
14.0%
1.3%
-‐35.6%
-‐8.4%
-‐23.2%
-‐8.4%

S&P
500
Return
157.0%
6.5%
30.7%
2.7%
15.6%
2.9%
10.3%
3.3%

*Source:
Mackey,
J.,
&
Sisodia,
R.,
(2013)
Conscious
Capitalism:
Libera@ng
the
heroic
spirit
of
business.
Boston:
Harvard
Business

Press
Review.

Slide
was
downloaded
from
hvp://www.slideshare.net/s2kapoor/foe-‐updated-‐ﬁnancial-‐performance

on
Jan
8,
2012

Evidence

Note:
Company
returns
are
total
returns
with
dividends

reinvested
and
compounded*

FoE:
Firms
of
Endearment

GtG:
Good
to
Great

S&P:
Standard
and
Poor’s
index
of
ﬁve
hundred
U.S.

companies

54

TARGET
FINANCIAL
RETURN

TARGET
SOCIAL,
ENVIRONMENTAL,
ETHICAL,
CULTURAL,
&
HAPPINESS
IMPACT

PROFIT
FLOOR

IMPACT
FLOOR

FINANCIAL
FIRST

INVESTORS

Op@mize
financial

returns
with
an

impact
floor

IMPACT
FIRST

INVESTORS

Op@mize
social
and

environmental
impact

with
a
financial
floor

Philanthropy

Making
Money

INTEGRAL
INVESTING

Risk-‐adjusted
op@mal

financial
return
and

premium
impact
returns

Op@mal
financial
and
op@mal
impact
returns

Strategy

55

Integral
Metrics

Planet

People

Profit

Ethics,
Ego,

Emo0ons
&

Consciousness

Behavior

Exterior
Interior

Individual
Collec@ve

Culture

&

Morals

INTEGRAL
INVESTING

Genera@on
Investment
Management

AQAL
Inves@ng,
Natural
Inves@ng

Why
Integral
Inves@ng?

Profit

TRADITIONAL

INVESTING

Profit
Metrics

WALL
STREET

GOLDMAN
SACHS

JP
MORGAN

LEHMAN
BROTHERS

KLEINER
PERKINS

SEQUOIA
CAPITAL

IMPACT

INVESTING

Profit

People

Planet

Sustainability
Metrics

ESG,
IRIS,
SAM

Triple
BoOom
Line

Grameen
Bank

Triodos
Bank

GLS

Sarasin

AQAL
INVESTING
is
based
on
Ken
Wilber’s
Integral
Model;
Ken
Wilber
is
endorsed
by
Nobel
Prize
laureate
Al
Gore,
and
Bill

&
Hilary
Clinton.

Wilber’s
theory
is
widely
applied
in
science,
poli@cs,
economics,
educa@on,
medicine,
and
business
including
McKinsey
and
Company;

Source:
Wilber,
K.
(2000).
A
theory
of
everything:
An
integral
vision
for
business,
poliHcs,
science,
and
spirituality.
Boston:
Shambhala.

Ques@on

© 2012 Integral INVESTING. All rights reserved.© 2013 AQAL Capital. Strictly Confidential
We
can
only
achieve
what
we

measure

We
now
measure
proﬁt
only

Impact
Inves@ng,
SRI,
RI,
etc.

are
trying
to
add
ESG
criteria

59

Environmental
Social
Governance
Metrics

Environmental
Criteria

•  Climate
change,

water
scarcity

•  Local
environmental

pollu@on
and
waste

management

•  New
regula@ons

beyond
environmental

product
liability

•  New
markets
for

environmentally-‐
friendly
products

and
services

Governance
Criteria

•  Board
structure
and

accountability

•  Accoun@ng
and

disclosure
prac@ces,

transparency

•  Execu@ve

compensa@on

•  Management
of

corrup@on
and

bribery
issues

Social
Criteria

•  Workplace
health

and
safety

•  Knowledge
and
human

capital
management

•  Labor
and
human

rights
issues
within

companies
and
their

supply
chains

•  Government
and

community
rela@ons

Source:
The
Monitor
Ins@tute.
(2009),
Inves@ng
for
Social
&
Environmental
Impact,
hvp://
www.globalimpac@nves@ngnetwork.org/binary-‐data/RESOURCE/download_ﬁle/000/000/6-‐1.pdf

ESG
Metrics

What
is
missing?

We
know
what
to
do
but

do
not
do
what
we
know?

How
can
Integral
Theory

contribute?

63

An
invita@on
to
contribute
signiﬁcantly

1.  Which
major
players
must
get
involved?

2.  Which
irresis@ble
ideas
would
inspire
them
to

act
now?

3.  Which
measurement
criteria
would
ensure

integral
success?

4.  How
would
we
know
that
we
are
on
the
right

track?

64

Summary

1.  What
is
the
global
context
and
the
main

driving
force
today?

2.  What
are
the
current
developments
toward

sustainable
ﬁnance
and
economics?

3.  Why
do
we
need
an
Integral
Inves@ng
Model

and
what
could
make
it
successful?

64

The
only
crisis
we
have
today
is
one
of

consciousness

Thank
you!

Appendix

© 2012 Integral INVESTING. All rights reserved.
• Integral
Audit—Bozesan

• Moral
development
–
Carol
Gilligan

• Ego
Development—Cook-‐Greuter

• The
Leadership
Circle
Profile—Anderson

• Emo@onal
Intelligence—Dan
Goleman

• PeopleScan—Clare
Graves

SELF
&
CONSCIOUSNESS
Metrics

CULTURAL
Metrics

• Integral
Audit—Bozesan

• Moral
development
–
Carol
Gilligan

• Leadership
Development
Profile—Cook-‐
Greuter
&
Torbert
Ac@on
Logic

• Presencing
—
Ovo
Scharmer

• The
Leadership
Circle
Profile—Anderson

BEHAVIORAL
Metrics

Financial,
ESG
Metrics
PLUS

Developing
Integral
Metrics

Fins.,
ESG,
Behavior,
Culture,
Consciousness

Source:
Sisodia,
R.,
Sheth,
J.,
Wolfe,
D.
B.,
(2007),
Firms
of
Endearment,
Upper
Saddle
River,
NJ:
Wharton
School.;
Pauchant,
T.
C.
(Ed.).
(2002).

Ethics
and
spirituality
at
work:
Hopes
and
piWalls
of
the
search
for
meaning
in
organizaHons.
Westport,
CT:
Quorum
Books.

Source:Rooke,
D.,
&
Torbert,
W.
(1998).
Organiza@onal
transforma@on
as
a
func@on
of
CEOs'
developmental
stage.
Organiza@onal

Development
Journal,
16(1),
11-‐28;
Rooke,
D.,
&
Torbert,
W.
(2005,
April).
Seven
transforma@ons
of
leadership.
Harvard
Business
Review

OnPoint
Ar@cle,
1-‐11.
Reprint
No.
R0504D.

Senge,
P.,
Scharmer,
C.
O.,
Jaworski,
J.,
&
Flowers,
B.
S.
(2005).
Presence:
An
exploraHon
of
profound
change
in
people,
organizaHons,
and
society.

New
York:
Currency
Doubleday.

• FoE
Analysis—Sisodia,
Sheth,
Wolfe

• PeopleScan—Clare
Graves

• The
Leadership
Circle
Profile—Anderson

• Integrated
Repor@ng,
PRI,
GIIRS,
GRI

• Integral
Sustainability
Indicators/Metrics

• The
Leadership
Circle
Profile—Anderson

Integral
Metrics

70

Research
on
Private
Equity
Investors

• 132
investors

– 50%
men
–
50%
women

• Global
investors
from
USA,
Canada,
Germany,

China,
India,
France,
Thailand,
Bali,
Singapore,

Turkey,
Dubai,
Ireland,
Switzerland,

• Aggregated
investment
capital:
$1.39B

71

HNWI
Seeking
Self-‐Actualiza@on

72

The
Hero’s
Journey:
Research
results

72
Copyright
2010

|

• 132
private
equity
Investors
&
top
execu@ves

– 
presidents,
serial
entrepreneurs
&
Venture
Capitalists

• High-‐tech,
clean-‐tech,
music,
beverage,
health

care,
Wall
street
ﬁnanciers,
lawyers,
music

• Ac@ve
philanthropists
and
social
entrepreneurs

• Stanford,
MIT,
Harvard,
Sorbonne,
etc.
graduates

– 15
doctorate
degrees,
60
MBAs,
other
Master’s

degrees.

73

The
Hero’s
Journey:
1.
AWAKENING

73
Copyright
2010

|

Physical
degrada@on,
back
pain,
overweight,
regular

colds,
heart
problems,
food
allergies,
injuries,

mul@ple
sclerosis

74

The
Hero’s
Journey:
Emo@onal
Pain

74
Copyright
2010

|

“horrible
divorce,”
death
of
“mother”
or
“wife,”
“high-‐
degree
anxiety,”
“worry
and
fear,”
“heartbreak,”

tension
between
“fear
and
desire,”
“grief,”
the
“need”

to
be
accepted
by
the
outside
world,
“frustra@on,”
“lack

of
trust,”
“lack
of
joy,”
“deep
sadness,”
“lack
of

alignment,”
“lack
of
fulﬁllment,”
“completely
unhappy”

75
75

Refusal
to
follow
the
call

• CONTROLLING
PEOPLE
AND
OUTCOMES

– “Bouncing
oﬀ
the
walls
and
just
being
a
control
freak”

– "I
was
never
available.
I
was
always
in
control"

– “I
tend
to
be
a
bit
of
a
control
freak”

• DID
NOT
ALLOW
FEELINGS:

– “Not
allowing
myself
to
feel
the
sadness
and
the
grief,”

”Closed
down
my
heart,”
“Wearing
coat
of
armor,”
“No

one
would
ever
get
close
to
me
again"

• ADDRESSING
SYMPTOMS
ONLY
INCREASED
PAIN

76

The
Hero’s
Journey:
The
Tipping
Point

76
Copyright
2010

|

• TERRIBLE
EMOTIONAL
PAIN
LEAD
TO
THE
COURAGE

TO
FACE
OWN
SHADOW
USING
TEACHERS

– “Got
fed
up
with
fear”

– Decision
to
experience
the
“dark
night
of
the
soul”

– Asking
essen@al
life
ques@ons

77
77

No@ced
lack
of
meaning
and
fulﬁllment

– “I
wasn't
manifes@ng
why
I
was
here”

– “I
was
following
a
script
that
wasn’t
authored
by
me”

– “while
there
were
fun
things
like
building
new
markets

and
I
really
enjoy
business,
there
was
this
sort
of
almost

mind
numbingly
impossible
monotony
around
the

trajectory
that
I
was
on”

– “I
had
enough
intellectual
understanding
that
the
gold

rings
were
running
out”

– “there’s
fewer
jobs
leu”
in
the
world

– “There
was
a
growing,
gnawing,
unfulﬁllment
of

maximizing
shareholder
value”

78

The
Hero’s
Journey:
2.
INITIATION

78
Copyright
2010

|

• EXCEPTIONAL
HUMAN
EXPERIENCES
(EHE)

– Unity
Consciousness
Experience

– Clairaudience,
Clairvoyance

– Out
of
Body
Experience,
Ancestor
encounters

– Appari@ons,
Mind
reading

79
79

Unity
Consciousness
Experiences

•  “Lightning
bolt
[that]
moved
through
my
body,”

•  “Out-‐of-‐body
experience
…
that
really
showed
me
very
clearly

that
I
am
not
my
body”

•  “We
proceeded
to
have
a
conversa@on
where
he
read
my
mind

and
responded
so
I
never
opened
my
mouth”

•  “Feeling
[that]
would
be
so
powerfully
strong
that
it
was
almost

to
the
point
where
you
couldn’t
walk”

•  “Mys@cal
experience,”
“divine
light,”
“divine
intelligence,”
the

“heart
was
exploding
with
love,”

•  “My
body
turned
into
an
intense
beam
of
light”

•  “My
heart
opened
and
I
could
feel
every
bird
and
insect
as
part

of
me”

•  NO
FRAMEWORK
TO
UNDERSTAND
EHE

Ø “quantum
leap
in
consciousness.”

80

More
Impact
of
Signiﬁcant
Experiences

• ASKING
ESSENTIAL
QUESTIONS

– “What
is
the
purpose
of
this?
What
is
it
all
about?

Who
am
I
helping?”
“Who
am
I?”
“Is
this
it?”
“Why

am
I
here?”
“What
is
money,
wealth
and
security
all

about?”

• REMARKED
COLLECTIVE
INSANITY

– “Why
did
I
let
the
mob
psychology
[on
Wall
Street]

tell
me
whether
I
was
having
a
good
day
or
not?”

– “I
had
this
moment
where
I
looked
into
the
future

and
all
I
saw
was
this
endless
stream
of
closing

quarters”

81

The
Hero’s
Journey:
3.
RETURN

81
Copyright
2010

|

“This
[journey
within]
was
like
drinking
out
of
a

fire
hose.
In
this
area,
MIT
and
Stanford
Business

School
were
like
drinking
out
of
a
fire
hose
for

academic
and
business
issues.
This
was
like

drinking
out
of
a
fire
hose
for
emo@onal,
spiritual

and
consciousness
issues.
We
need
both.”

82

Investors’
Value
Shiu

Dr.BozesanOnIntegralventuresITCConference2013

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