As 2009 draws to a close, the NSFM Coordinating Team is pleased to report on NSFM’s activities since its inception in April of 2008.  It is clear that there is much work to be done and reform necessary if we’re to improve the sustainability of our global financial markets, so essential for the achievement and distribution of long-term prosperity. We thank the very many people who have participated with us in our work to date, and look forward to further collaboration in 2010.  nsfm2009report

The Economics of Ecosystems and Biodiversity (TEEB) reports, enclosed, arise out of a joint venture between the German government and the European Commission to develop systems to evaluate and account for the financial benefits of ecosystem diversity.

To quote from the report:

“The TEEB d1 report for policy makers takes as its starting point that by failing to account for the value of ecosystems and biodiversity, we will make the wrong choices in responding to these and other challenges. it demonstrates that understanding and capturing the value of ecosystems can lead to better informed and possibly different decisions; accounting for such value can result in better management; investing in natural capital can yield high returns; and sharing the benefits of these actions can deliver real benefits to those worst off in society. This evidence and the arguments we develop in the report provide a strong case for broad policy action. Put simply, making the benefits of biodiversity and ecosystem services visible to economies and society is necessary to pave the way for more efficient policy responses.“

The importance of accounting for long-term risks and benefits is part of the core NSFM Principles, and so it is gratifying to see this work going forward advancing the goal of more comprehensive accounting.

teeb-nov-13-09-report-summary-for-policymakers1

teeb-sept-2009-climate-issues-update

Geneva, 22nd October 2009: Today the “Ethics in Finance Robin Cosgrove Prize” will be awarded to seven young people who submitted winning papers on INNOVATIVE IDEAS FOR ETHICS IN FINANCE.

The financial crisis was largely triggered when trust in financial markets was destroyed by lack of transparency and evidence of the absence of ethical behaviour by many in the banking and financial business. The crisis has proved the relevance of the Prize for Ethics in Finance and Robin Cosgrove’s vision of the threat posed by lack of integrity, trust and ethical practice in banking and finance.

The winners of the Global Prize, now in its second edition, are jointly Elise Pellerin and Marie Casimiro, both French, for their paper on “The need for order in the disorder of finance” (Du bon usage de l’Ordre dans le désordre de la finance) who will together receive USD8,000, and Geoffrey See, from Singapore, who wrote on “Internationalism, Institutions & Individuals: Systemic Changes for a Systemic Ethical Crisis” (who will receive USD 8,000). Meredith Benton, of USA, wrote on “Innovative Ideas for Ethics in Finance” (she will receive USD4,000).

In addition, the International Jury of the Prize awarded a “Special Commendation” to David Sifah of Ghana for his excellent paper on “Financial Ethics”. His participation in the Award Ceremony is made possible by Barclays Bank.

The new Ibero-American Prize, sponsored by the MAPFRE (Madrid), is won by
Leire San-José (Assistant Professor and Research Fellow, University of the Basque Country) on ” Ethical Cash Management? A Possible Solution”, with a prize money of 10,000USD. The second Prize (5,000USD) is awarded to Felippe Araujo (a Brazilian Phd student in Japan) who wrote on ” Ethics: the key to Credibility”.

The best eight papers from the two competitions are published today in a special issue of FINANCE & THE COMMON GOOD/BIEN COMMUN [Geneva, 2009], and may be found on the website of the Robin Cosgrove Prize for Ethics in Finance.

The Prize, based in Geneva, is managed jointly by the Observatoire de la Finance and Dr Carol Cosgrove-Sacks. The best 28 papers submitted for the Prize were evaluated by a distinguished international Jury. The process for evaluation was strictly anonymous. The Prizes are awarded in the context of the Annual Meeting of the Observatoire, focusing this year on Ethics, Finance & Responsibility – the Crisis: Wasted Opportunities?

The 2009 editions of the Prize attracted more than 125 expressions of interest and an overall excellent quality of entries. The third edition of the global Prize and the second edition of the Ibero-American Prize will be launched in Spring 2010.

For more information, please contact the Prize Administrator, Ms Sibilla La Spina, Telephone +41(0)223463035 and email: info@robincosgroveprize.org

NSFM participant, Ed Waitzer, has published “Defeating Short-Termism, Why Pension Funds Must Lead,” in the Fall 2009 Issue of the Rotman International Journal of Pension Management.  He argues that one of the lessons from the recent market crisis is the interconnected nature of the challenges we face, and that we can no longer afford myopic responses. This reality has material implications for pension fund trustees and managers.  The time has come for them to lead rather than be dragged along.

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Ed is Jarislowsky Dimma Mooney Chair in Corporate Governance at York University, Senior Partner (and former Chair) of Stikeman Elliott LLP, and a former Chair of the Ontario Securities Commission.

The Aspen Institute Business and Society Program published a new report on Overcoming Short-Termism yesterday.  It asks a fundamental question: How can the systemic influences towards short-termism among corporate managers, boards, investment advisers, providers of capital and government regulation be overcome?  This Report puts forward suggestions for new public policies in three areas: market incentives, to encourage more patient capital; fiduciary duty, to better align the interests of financial intermediaries and their investors; and transparency to strengthen invetor disclosures.  Participants who contributed to the Report include John Bogle, Warren Buffett, Louis Gerstner, Marty Lipton and Ira Millstein, so as one reporter has noted, “this wasn’t just any blue-ribbon committee.”

http://www.aspeninstitute.org/sites/default/files/content/docs/business%20and%20society%20program/overcome_short_state0909.pdf