The Norwegian pension fund GPFG, the
largest investment fund in the world, worth
750 billion euros, also recently stated that
they will drop dozens of coal companies
from their investment portfolio.
means the world to these start-ups, not
only because of the investment potential
but also because of the tremendous value
large corporations can offer them in terms
of knowledge, global networks and other
necessary means. In other words: access
to crucial growth ingredients. In fact, we
do not need more start-ups. We need
start-ups that scale.
Global scale for global challenges
Scale is necessary and in this regard,
governments and politics must be
involved as well. On the way to the
necessary global system change, a
good example has already been set by
the French government when on May
17, France’s environment and energy
minister Ségolène Royal announced
her intention to implement a domestic
carbon price floor for the French power
sector. It would ensure that French
power producers pay a minimum
carbon price of €30/tCO2 by
charging a tax on fossil fuels used
for power generation. The new policy
would tax fuels at a level that will make
up the difference between the price
floor and the carbon price generated by
the EU Emissions Trading System (ETS).
The main impact of the new carbon
price floor on the power sector will be
to drive coal out of the mix. The levy
will eliminate coal as an energy source
by 2019 by increasing its short-term
marginal costs to uncompetitive levels.
It will also bring in more government
revenues. The most important impact
of the French carbon price floor may
not be on the short-term emissions,
but on the EU and global climate policy
discourse. It is evident that the real
price on carbon cannot wait and more
can and should be done to change the
system on a global level. In fact, many
corporations have been literally asking
for it before, during and after Cop 21.
We need a system change for business,
and for tax levies as well. The SDGs
provide a compass by which all areas
of business, science and government
should be guided. However, the financial
system must adjust accordingly. What
we call ‘externalities’ – the price for
resources, pollution and damage must
become ‘internalities’ making profit and
loss about the value creation and the
devaluation of our assets. As stated in
my recent book, New Economy Business,
this comprehensive approach to value
and cost is the essence of accounting
in the new economy with the goal to
protect our social, environmental and
financial assets.
The world needs businesses to take
action and lead the movement to a new
economy at scale. We must be ambitious
and take bold measures, scale up business
solutions quickly and effectively, and
collaborate to meet the challenges we
face with strength and determination. In
the near future, business and capital for
good will no longer be a frontrunners’
exception. It will become the norm. For
those businesses that want to be here to
stay, business for good is their future. Since
that future starts now, let’s get to business
and see the necessity as an opportunity:
a trillion-dollar business case! ■
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