Weekly Wrap Up: FCA rules on Crowdfunding

This week The Financial Conduct Authority did a lot to help consumers. This was, however, at the expense of businesses. In short, it set out new rules on payday lenders that would shut-down about half of the industry. Similarly, it has imposed rules on the nascent crowdfunding industry that could severely hinder its growth.

The concept of crowdfunding - by Rocio Lara

The FCA has always had a tough balance to strike when dealing with alternative funding; on one hand it has to encourage the industry to grow in order to open up an important access route to capital for SMEs struggling to obtain credit. At the same time it has to ensure that it is adequately protecting investors from risky start-ups. The result of this balancing act is that whilst the FCA seems to have struck a fair deal for peer-to-peer lenders (whose business models work around debt based finance), its equity-based finance counterparts in the crowdfunding sector have been hit punitively. These news rules may stop this form of finance in its tracks.

Under the new rules, equity-based crowdfunding will be subject to the “10 per cent” rule whereby investors must certify that they are not committing more than 10% of their net investible assets, excluding their home, pensions and life insurance. This rule will only be waived for those deemed to be “sophisticated investors”, and will not apply to peer-to-peer loans. This arbitrary limit on the amount of money that an individual can invest into crowdfunding ventures will, therefore, inevitability exclude small investors.

It would be a great shame for the crowdfunding industry, a great source of innovation that has opened up a new pool of capital to small businesses, to be quashed at such an early stage in its development. SMEs are driving the British economy and, therefore, the recovery of it. With lending levels by Banks at historic lows, putting these draconian rules in place will only reverse some of the great progress that has been made to kick-start lending and the economy.



This week, Abchaps attended the Global Mining Finance Spring Conference at the London Chamber of Commerce and Industry, which brought together miners and financiers looking at the most favourable regions for mining, as well as the hottest commodities for investments.

Who can resist a fun quiz? Abchaps enjoyed Farrer & Co's fab Quiz Evening, as well as hosting an environmental-themed market lunch. In view of the need to have effective Non-Executive Directors to support the reputation of a company, we attended the Peel Hunt NED Awards - a great opportunity to recognise the contribution that London’s NEDs make to the City.


To end the week on a high, we will be sipping cocktails tonight at the Association of Chinese Financial Professionals’ UK networking drinks.



This week saw Brewin Dolphin appoint Guy Foster as Head of Research having made a considerable impact at the firm over the last eight years. Panmure Gordon also appointed a new Head of Equity Research, Jeremy Grime. Over at Field Fisher Waterhouse Owen Talfan Davies joined as a Real Estate litigation partner. Charles Stanley Group also announced that Anthony Scott will take on the role as Head of Investment Management.



“Crowdfunding”: the collection of finance to sustain an initiative from a large pool of backers. Companies who have recently turned to crowdfunding to source capital have also used the opportunity to market the business as well as fund it; Naked Wines is one such example.



In the mood for some contemporary art? Sunday 6th April is the last day of the Institute of Contemporary Arts’ display of Richard Hamilton’s famous ‘Man, Machine and Motion’ and ‘An Exhibit’ exhibitions. Composed of thirty steel frames and installed photographs, this re-showing of his mid-1950s work will certainly distract even the busiest of minds.

Another event not to be missed, and which is fast on its way out, is the London Coffee Festival, being held at 15 Hanbury Street until 6th April. This is the UK’s largest coffee and artisan food event, celebrating London’s vibrant culture and love of this favourite type of “brain fuel”. Tickets for this event can be bought for different sessions; bunch, lunch or tea-time.

Finally, an event for the contemporary Londoner: The Ceramic Art London show being held at the Royal College of Arts. This show will display the work of over 75 ceramic artists, with collections up for sale as well as for display. This three-day event, which ends on 6th April, includes talks, discussion and demonstrations.

Follow us on Twitter @AbchurchComms

Weekly Wrap Up: Linkedin & the Hungry Internet users of China

On Tuesday, Linkedin launched a simplified Chinese language version of its website and is in the process of getting a license to operate the Chinese language site. If successful, it will mean that Linkedin will be the only global social media website to have official permission to operate in China, whilst most social media sites have been blocked by the Chinese government.

But does this mean that Linkedin will have exclusive access to professional circles in China? This will hardly be the case. Strict censorship rules in the country have not ruled out internet users’ appetite for social networking sites. Instead, the people of China have created their own networks similar to their Western peers, but with more users. Linkedin will be facing strong local competition from similar networking sites such as Ruolin and Dajie. Similarly, the Chinese versions of Facebook and Twitter, Ren Ren and Weibo have had incredible success and have widely penetrated the internet market in the past few years. Internet users in China have become increasingly sophisticated. Like everywhere else in the world, social media is an important platform in forming public opinion in China. At the end of 2012, China had 564 million internet users, representing nearly 40% of the Chinese population.

Internet users in China use "wall-climbing"
software to climb over the Internet fire wall
Image Isawnyu

Despite the fact that popular international social media sites are officially banned by the PRC government, it would be naïve (and possibly even wrong?) to assume that Chinese internet users don't use with them. By spending ten minutes to download what Chinese called the “wall-climbing” software (i.e. climbing over the fire wall), internet users in China will be able to access Facebook as smoothly as their Western counterparts. Whilst Linkedin’s expansion into China may be viewed as a new portal for PR’s to promote in China, it should by no means be viewed as the only site to watch.




This week Abchaps attended some great events, including the CFA UK Research Challenge at Locke Lord’s offices. At this, the investment Olympics for young professionals, the future potential of the City really shone through. Ever keen to learn more about our counterparts in the media, we enjoyed drinks at Bloomberg’s offices and have taken their preferred methods of working on board!

In terms of hosting, the Abchurch fridge has never been so full of healthy food and bubbles. We welcomed a large team from Cenkos Securities, where we discussed not only the fast-growing space of Life Sciences but also the increasingly efficient space of Clean technology. As more and more Companies now seek good team “chemistry” from their advisers, it was a good chance for the teams to mix and swap ideas.

Abchaps also hosted two market lunches, including one with a social media themed and one with an impact investment focuse. It seems that impact investment is rapidly maturing, with investors able to reap more gains from their socially/environmentally responsible investment than ever before.

We also flew over to Boston to join the IPREX GLC conference for the weekend. As an active member of this global network, we look forward to hearing about how our global partners are fairing in what seems to be a much more positive economy.




Private equity firm NVM has recruited Karl Cockwill as a portfolio manager in its investment team. He joins from 3i, where he was a portfolio manager.

Steven Skinner has been appointed head of West End investment at BNP Paribas Real Estate. He joined its central London investment team in January from Savills.




"LION" - A LinkedIn Open Networker - A LinkedIn member with more than 500 connections. These members accept any offer, good or bad and weak or strong; some question the value of this LION status when considering the quality and the quantity of contacts.

Follow us on Twitter @AbchurchComms

Climate Week: Innovating our way out of the problem

This week is Climate Week, Britain’s biggest environmental occasion of the year with half a million people attending 3,000 events nationwide. We at Abchurch have been playing our small part in the office by relying only on natural light this week (and we have plenty of it) – it’s quite therapeutic and I thoroughly recommend it, although with it getting dark around 5pm, you need to know when to give in!

Learning about the technology and innovation UK companies are coming up with to counter the climate change issue is one of the key things we can take away from Climate Week. On Monday, 14 companies and individuals received awards at the House of Commons for their work to tackle climate change over the past year. The innovative examples include Loowatt, a waterless lavatory system that uses anaerobic digestion to convert waste into biogas. Invented by a British company and based in Madagascar; there is a clear application for this product in parts of the world where lack of water is an issue, with an added benefit of generating power for the household. This type of innovation is essential to prevent the climate change fiasco that some people predict.

Another award winner was a documentary film called Chasing Ice, documenting a photographer’s effort to capture the effects of climate change by setting up 34 cameras across 16 glaciers in the Arctic. It really is worth a watch because apart from being visually spectacular, it was made by James Balog, a climate change sceptic until 2005 when he was sent to the Arctic for an assignment and saw for himself the extreme change in the glacial landscape since his previous visit. It also seems to have had a strong impact on viewers – an American fan of the famously right-wing and staunch global warming sceptic Bill O’Reilly says this film “has changed her life”.

Excess Meat Consumption

When it comes to concern about climate change, most people think close to home and of their own transport and energy efficiency. We do need to reduce our personal CO2 emissions, but I don’t think people realise the efficiency and inefficiency of some other products that we buy. Take meat production for example, beef is the least efficient, and pork is the most efficient. Did you know that in the USA 80% of the output from agricultural land is used to feed animals? 80% of corn, 90% of soy, 70% of wheat produced goes directly into the mouths of the animals that will go into our mouths. That’s not all: 50% of the water in America is used to irrigate the food that is fed to animals. This level of consumption is not sustainable in the long term, particularly considering the projected population increases. Research by Exeter University suggests that in order to become sustainable we need to reduce global meat consumption from 16.6% to 15% of the average daily calorie intake – about half of the average western diet.

Many organisations are promoting the concept of eating less meat - not no meat, just less. I think this is a much more workable solution of cutting down the consumption of meat per person. Most people would struggle to go fully vegetarian, so promoting eating less meat is more constructive and realistic. Meat Free Monday for example is a completely workable idea. If more people signed up to this sort of initiative we could quickly cut our demand for meat.

Reducing CO2 Emissions

There are signs that Europe is moving in the right direction in terms of cutting CO2 and making farming more efficient. The Common Agricultural Policy (CAP), the system that subsidises farmers within the EU, is undergoing reforms to align itself with the Europe 2020 strategy for smart, sustainable and inclusive growth. This includes proposals to ‘green’ the direct payments to farms by offering farmers extra money to do green good deeds. Considering the size of the CAP budget (€58 billion in 2011), this is a serious amount of money. It would encourage farmers, for example, to buy items such as an anaerobic digester that would turn cow manure into methane which would be used to generate electricity. However, in true EU policymaker fashion, this is a slow process and the exact specifications of the reforms are still unknown.

Can we afford to change?

Personally, I’m an optimist when it comes to climate change and believe that we will innovate our way out of the problem. There will come a point when renewable ways of producing energy become cheaper than their non-renewable counterparts so economically it will make sense to make the change. Solar power in particular is improving at such a rate it will soon be able to compete with fossil fuels on a cost basis, according to Google co-founder Larry Page and futurist Ray Kurzweil.

So whilst Climate Week is drawing to a close, consider the true cost to the environment of everything you consume. You could even attend an event. And with that I’m off to make a cup of tea. No, scratch that. I’ll have a tap water.

Richard Sowler

Follow us on Twitter @AbchurchComms

Electric vehicles are the new black

The electric vehicle market is changing rapidly. Previously, they have tended to conjure images of boxy, plastic-looking automobiles reserved for eco-friendly motorists. But the electric vehicle industry is revamping its image and is now a fast-growing market of attractive cars, which the top automotive manufacturing names are tapping into.

Electric vehicles are not purely about saving money on fuel. Climate change is also a critical issue for many drivers, with July 2012 being the hottest month in US history, and hurricane Sandy another extreme weather condition. Electric vehicles are also essential for the UK consumer market, since 25% of the UK’s generating capacity of non-renewable energy sources will come to an end over the next 10 years.

Formula-E

Lord Paul Drayson, an entrepreneur and former Minister of Science, who spoke at this week’s EV Investor Club’s breakfast conference on cleantech technology, was emphatic that if electric vehicles are to have a future, they must be more glamorous and exciting to all motorists but crucially, the younger generation. This is why he has come up with the FIA Formula-E Championship. In May 2014, 100% electric cars will race on city circuits across the globe in “a street racing festival that leaves no trace.” The event is targeted at a younger market. The races, short but intense, will be streamed live on social media sites and involve what Lord Drayson described as ‘tag-racing’, where in each race the driver takes a pit stop, running 100m to the next car, so the first one can be recharged. In the final race there will be a ‘tweet to boost’ competition running alongside it, where each car will get a power boost in accordance to the size of its twitter support. These electric car races will be going to cities across the globe. First stop will be Rome where the cars will be showcased on a circuit around the Colosseum. With pictures of racing cars to rival McLaren’s, electric cars look set to become a powerful force in the market.

What about the price tag?

Further illustrations of the evolving electric vehicle market came from Iain Saunderson of Lightning Cars, cars which he described as ‘reassuringly expensive’ due to the high-tech technology involved. Although each car comes with an eye-watering €350,000 price tag, they were obviously attractive enough for an audience member to ask Saunderson whether there was an order book, after the presentation. Michael Boxwell’s Bluebird supercar was equally popular with the audience, and is even a contender for the 2013 UK land speed record, a further testimony to just how far technology for electric cars has come.

Beyond the UK market, thriving Australian based electronic scooters business VMoto is now dual listed on the AIM market in London and the ASX market in Australia, and now the number one selling brand in Europe. VMoto’s Michel Fulton explained how prices have come down so they are almost on a par with petrol scooters, with the added benefit that they run at one tenth of the cost.



Chargemaster
charging-points


But what will enable the electric vehicle industry to really take off is accessible charging for consumers. David Martell of Chargemaster described how his charging-point business has grown to be the biggest provider in Europe. Having recently sealed a transaction with Electromotive, Chargemaster now has a 48% share of the European market. Its charging-points are being installed in car parks, shopping centres, hotels, train stations and supermarkets such as Asda and Waitrose, ready for a market which Martell estimates is growing at a rate of 40% per annum.

With the cost of electric vehicles reducing (Renault now offering an electric car priced comparably to their popular Clio model), new marketing initiatives are ensuring that they will become increasingly desirable to a younger target market. As the market grows, electric vehicles will make a real difference to our environment, save consumers money on running costs, and offer another exciting global sporting competition.



Follow us on Twitter @AbchurchComms

Hong Kong – the hub in China for biotech and cleantech

At least, this was the argument put forward by a delegation from the Hong Kong Science Park (HKSP), and Hong Kong Government, at a seminar in Magdalene College, Cambridge on 18 September. Briefing an audience of cleantech and life science businesses and advisors, the delegation presented the undoubtedly impressive research facilities at HKSP, and were shown the plans of the new Phase 3 development – which aims to be a carbon neutral research facility, pushing the park’s credibility in clean technologies. With a favourable tax system (15% is the highest band), UK legal system, supportive government (in terms of soft money), investor infrastructure, excellent transport communications, and direct channel into China, the delegation made a strong case for Hong Kong as the first port of call for businesses wishing to establish a presence in the region.

As a member of the audience, I have little doubt that start-up tech companies would be made to feel very welcome in Hong Kong, and would get all the support that a young business could want for. However, without peers of success, the transition from start-up to SME and beyond is largely unchartered. So, for those tempted, you’ll not only need your entrepreneurial spirit, but your pioneering boots.

Adam Michael

Follow us on Twitter @AbchurchComms

How to IPO: advice for Cleantech companies

Event: London Stock Exchange Cleantech IPO Forum 2012

Date: Wednesday 20^th June

Location: London Stock Exchange, London, UK

On this picturesque British Summer morning, the Abchurch Cleantech team made the short venture across the City to
Paternoster Square and the London Stock Exchange for the 2^nd Annual Cleantech IPO Forum; a 'How to IPO' guide for cleantech companies considering floating on the Stock Exchange. Organised by Clean Energy Pipeline, we were pleased to be a sponsor alongside other IPO advisers Bird & Bird LLP, KPMG and Nomura Code Securities.

After arriving at the building and navigating through the rather intimidating revolving doors, we were greeted by the alluring aroma of coffee and breakfast pastries. As the clock struck 9, a great selection of Cleantech companies were ushered through to the auditorium where the conference commenced with a welcome note from Sam Rossiter, Product Manager of Capital Markets Events at the LSE. Kicking off the presentations was Axel Kalinowski, Business Development Manager of Primary Markets at the London Stock Exchange. He gave an insightful overview of the Main Market and AIM, the current IPO climate and the benefits of listing in London. Following Axel was Clean Energy Pipeline’s CEO, Douglas Lloyd. He spoke about the recent trends in the clean energy sector, highlighting that whilst 2012 may follow a similar dip in investment deals as in 2008/9, there is still a growing appetite for investing in the sector and it will continue to function as a major growth driver. The last speaker for session one was Ken Rumph, Director of Research at Nomura Code, who gave an eloquent presentation on what investors look for. Some of the key issues he raised included, first and foremost, that investors are looking to make money and that companies need to make their business case clear and concise; explaining why would people buy your product over competitors? A strategic approach would be to focus more on commercialisation and less on technology or green credentials - these can always be expanded later. Secondly, set out realistic milestones and plan ahead; make a checklist of things you are going to and have achieved. And finally, ensure you pick the right advisors; they need to understand the market, your underlying business model and have the chemistry to develop strong relationships. A Q&A session on public offerings concluded round one.

After a rejuvenating coffee and biscuit break, session two kicked off. First up was Connie Mixon from MyCelx giving a thorough case-study overview of the IPO process; from what to expect in life as a listed company on AIM. She similarly stressed the importance of your advisors, and in particular, how beneficial the Financial PR house was - comments which we greatly appreciated hearing! Bird & Bird LLP then navigated us through the legal issues of taking a company public. Matt Bonass and Vanessa Young addressed what to expect from the lawyers, the choices of market on which to launch and IPO preparation. Another Q&A session and coffee break and it was time for the final round. Gregory Hughes, director at KPMG, talked through the financial reporting pre and post-IPO. He highlighted the regulatory requirements necessary on the main market and AIM, the role of the reporting accountant, their work and deliverables. Key components included the construction of the Prospectus/Admission Document, the long form report (a core part of the financial and commercial due diligence for an IPO) and the ongoing requirements post IPO for both the company and accountant, e.g. financial reporting and interim management statements. Then it was Abchurch’s time to shine as our CEO, Julian Bosdet took to the stage. In a well-received presentation on how to IPO most succesfully, Julian informed the audience on how to communicate with investors and the media. He stressed the role of your financial PR advisor in helping to construct and roll out an effective, integrated communications strategy. The aim is to reach all target audiences through the press and analysts during an IPO – including all levels of investors, as well as employees, customers and industry partners.

The concluding presentation summarised a fund manager’s view with respect to investing in cleantech. Hyewon Kong from WHEB Asset Management explored the key themes and factors driving stock selection. There was a strong focus on sustainability; capturing new investment opportunities created by long term social, demographic and environmental challenges. They are not just looking for a product and how it brings benefit to the society and environment, but companies which provide real solutions to the challenges. These cleantech companies need to illustrate how they will maintain margins in an increasingly competitive landscape and have a focused strategy in terms of growth.

The resounding message of the conference on IPOs seemed to agree that while it is a volatile market at present and investment has seen a slight downturn as some fund managers concentrate on maintaining their current portfolio rather than investing in new companies, the cleantech theme remains a strong growth driver. In particular, investors like companies which are driven by regulation, as they may be somewhat insulated by the economic climate and public spending cuts. So, why IPO? Intial public offerings and life as a publically listed company offer enormous benefits; from increased access to capital to greater efficiency and corporate governance.

Overall, the conference was an excellent opportunity for companies to get a full grasp of how to IPO and what is involved in the IPO process, to identify the key players involved and what to expect when you decide to float on the Stock Exchange. For any ‘newbie’ into the industry, it acted as a constructive and worthwhile training morning, answering in great detail the popular "What is an IPO?" question. We heard the full IPO story directly from the industry experts and I would highly recommend attendance for future conferences. And, if your own personal development isn’t quite enough to tempt you, after the final closing remarks, you are served up with a delicious two course lunch and a chance to network and meet some of the experts.

Follow us on Twitter @AbchurchComms

Abchurch hosts IPREX 2012 Annual Meeting

After months of careful planning, Abchurch hosted IPREX’s Annual Meeting 2012 in London. Along with our co-hosts Brevia Consulting, we were delighted to welcome 44 of our international partners, from 19 countries, to London. Based in the Grange Hotel St Paul’s, we treated our lovely guests to a fun packed schedule. To start the event our international partners were invited to a reception at our awesome (as some of the guests descirbed it) offices so they could enjoy the spectacular panoramic view of London and initiate contact with their fellow guests. Brevia invited keynote speaker Steven Norris to draw on a long career as a successful politician and businessman, which certainly got the conversation flowing.

After a stroll over the iconic Millennium Bridge, we celebrated Shakespeare’s 400^th birthday with dinner at the Globe Theatre, where each of his plays are currently being staged in a different language (that night they were performing The Two Gentlemen of Verona in Shona, a Bantu language, native to the Shona people in Zimbabwe).

The next morning, we took our partners by private boat from Limehouse Marina up the River Lea to the stunning Forman’s Fish Island conference venue, idyllically set directly across the river from the Olympic Stadium. On the way into the conference room we peered into Forman’s famous salmon smokery to see it in action.

Editor of Business Green, James Murray, kicked off the conference with a seriously insightful talk highlighting the need for investment in clean technologies and the opportunities and challenges in the sector. He also highlighted some unsung benefits of the clean technology sector (including huge job creation) and drew our attention to very innovative technology from Seawater Greenhouses.

A thought-provoking presentation by John McLean (who had treated guests to China Food Company’s tasty soy sauce in their goody bags) on Doing Business in China came next. His insight into cultural nuances and etiquette sparked lively discussion about growing business opportunities in the East.

Just before lunch we arranged for IPREX’s traditional Kodak moment to take place on the roof of Forman’s, with a full frontal view of the Olympic Stadium. Definitely one for the mantelpiece!

Lunch was a delicious buffet of the locally sourced sustainable salmon that we had seen smoking earlier; quite a treat.

The rest of the day was very entertaining, with an interactive session on Creativity and Innovation as Communication Power Tools and an opportunity to get to know our new Warsaw, Prague and Boston partners better. Kathy Tunheim also presented the new phase of the IPREX Strategy.

After the sunny boat journey back to the hotel, guests had a moments respite to freshen up before returning to the Southbank. This time our destination was the Tate Modern where we toured some of the stunning art on display and the adventurous among us took in the Hirst exhibit. We then enjoyed a superb dinner overlooking the Thames in the Tate Modern Cafe before heading out on the town …

The next morning, Brevia led the charge to Westminster to continue the conference, where IPREX’s regional report introduced plans to extend our network into Russia and Africa. Following the public affairs theme, Simon Thwaites of ComRes gave an interesting presentation on the power of polling as a business development tool in order to meet client challenges and requests.

Brevia then chaired a discussion alongside Cameron Blair, director of Social Media at Wilkinson PR, our Australian IPREX partner, about using social media to help businesses within the IPREX network as well as clients. This provoked considerable amount of discussion with the room full of members wanting to share their digital expertise.Tactics on how to improve a company’s SEO were discussed at great length as it was apparent all partners have the view that the digital world cannot be neglected. The idea of social media monitoring was also discussed extensively, going into the increasingly relevant debate over whether coverage on a journalist’s Twitter feed can now equate to a hit in the media. What was clear was that everyone shared the belief that digital media opportunities are something all IPREX partners need to embrace with open arms.

The final discussion was lead by our Netherlands IPREX partner Cas Jenster from ACA Communicate, talking about making the most of the IPREX partnership for new business opportunities. Our guests shared stories of working together and utilising the partnership to its fullest. An award was then given out to the partner who had provided the most new business over year to the network … and the winner was … Renzi Stone, of Saxum, with an amazing five successful new business opportunities for others.

After lunch, the conference finale was a tour of the Houses of Parliament. Our guests wandered through the current Upper and Lower houses as well as viewing Westminster Hall, built between 1097 and 1099 by William the Conquer’s son, King William Rufus the Redhead. This historic location has witnessed many a famous trial, such as the trail of Thomas More, and Charles I (our only Monarch to have been executed) on the steps of Whitehall, and of course the famous Gunpowder Plot.

The tour of one of the truly fantastic historic and current sites in world politics capped what was a highly successful and useful few days, where we treated our guests to some of the best of sport, politics, arts and literature that our City has to offer. And judging by all the lovely thank you messages we have received, our partners left the UK satisfied with their valuable meetings and time to network with their fellow members.

The London conference had such a great turnout and Abchurch would like to thank all partners who attended, and extend our special thanks to our new partners from Warsaw, Prague and Boston, who we all loved getting to know better.

Bring on the next IPREX meeting …….!

Follow us on Twitter @AbchurchComms

Rosenblatt’s New Energy Awards 2011

On the 24th February, Abchurch hosted a table at the New Energy Awards 2011 where Acta, an Abchurch client was nominated for the ‘Company of the Year’ award.

These days, the awards are THE place to be seen for the great and the good of the cleantech world with well over 700 people attending. About four years ago, they were held in a hotel with approximately 300 people. The ceremony is now held in the Natural History Museum, with tables based around the iconic skeleton of the Diplodocus.

However, the highlight of the evening was a talk by Henry Worsley who led the Matrix Shackleton Centenary Expedition to the South Pole last year. The images of the Southern Polar cap and changing landscapes bought home the important role the cleantech sector has in preserving places such as this. Henry showed fascinating pictures of the Shackleton expedition 100 years ago which included taking a car as well as horses along for the ride! The horses did prove useful of course, but the car did not last very long in sub zero degrees.

Unfortunately Acta did not win but there is always next year when I am sure the awards would have grown even larger, reflecting the increasing size and spread of the cleantech sector. The winners also gave a hint as to which technologies to keep an eye on over the coming year and they ranged from wave power to smart meters. The latter is a sure reality for everyone because the Government aims to have every home in the UK equipped with one by 2020.

For more information on the winners, please click on this link:

http://www.growthbusiness.co.uk/businessxl-events/rosenblatt-new-energy-awards-2011/2011-shortlist-and-winners/

Ashleigh


Follow us on Twitter @AbchurchComms

Worried about sustainability? Get a Brazilian

Given the ongoing debate over the sustainability of biofuels, I was keen to hear for myself the story that is the Brazilian ethanol economy. Hence, Abchapess finds herself at the “Brazilian Cleantech Breakfast” on the 11th March in Rosenblatt’s offices mulling over how to both communicate and eat a bowl cereal while holding a cup of coffee, a handful of business cards as well as managing the usual female trappings of handbag and coat in a room the size of a two man tent containing a not inconsiderable number of overly familiar Brazilians and excited greenies. Despite the general melee, the crowd finally managed to squeeze itself into the limited chairs to the clutter of breaking plates and falling cutlery at which point the speakers had their opportunity to sell the class-leading benefits of the renewable energy market in Brazil.

For those who aren’t aware of the powerhouse that Brazil is in the alternative fuel world here are a few facts. The first car to ever run on ethanol was produced in Brazil in 1979 having been experimenting with the liquid since the 1930’s. This legacy has resulted in Brazil now consuming more ethanol than petrol. Moreover, around 45% of all energy produced in Brazil comes from renewable sources. Unsurprisingly, a number of entrepreneurs, small companies and multinational corporations have been jumping onto the Brazilian bandwagon over the last few years.

The Energy Revolution

Paolo Wrobel, of the Brazilian embassy, kicked off the proceedings by setting the scene for the energy revolution that is happening in Brazil. Huge revenues of oil and gas have been discovered off the coast of Brazil, in particular natural gas. This relatively clean and abundant resource allows for a number of opportunities for British companies to provide anything from services to machinery. On their biofuels strategy, the market has been boosted by the Environmental Protection Agency classifying ethanol from sugarcane, an area in which Brazil is world leader, as an “exceptional fuel”. This is due to the complete avoidance of “food vs fuel” and the fact that nothing is wasted. The leftover bagasse is used to produce electricity which powers the plant, even providing excess electricity for the grid. Most importantly sugarcane from ethanol is easily scalable and competes very favourably in financial terms with fossil fuels. A no-brainer it seems.

Up to the Challenge?

The final word at the Breakfast was left to Olivier Mace Head of Biofuel Strategy and Regulatory Affairs at BP. As a global fossil fuel giant, BP’s commitment to dedicating time and money to renewable energy has been impressive. They see two big challenges facing them: energy security (we will double our primary energy requirements by 2050) and climate change. Nothing new there. He discussed four criteria for biofuels which would allow them to compete with traditional fossil fuels in transport; cost, low carbon, sustainability and scalability. If biofuels could beat other types of fuels, including fossil fuels, in all four categories, it would be one of the only viable options for mass market use; the other of course being electric vehicles. His personal opinion (obviously) was that the most economically sensible option would be the combination of energy efficient internal combustion engines with the use of low carbon fuels. Working to that belief, BP Biofuels invested in Brazil’s sugarcane ethanol market in 2008 through acquiring 50% of an integrated facility, consisting of an ethanol production factory on a sugar cane estate. Brazil has attracted a number of other international investors similar to BP in the recent years, including Shell which has recently announced its intention to tap into a market which was once dominated by wealthy local families.

The conclusion that can be drawn from this may seem surprising. First generation biofuels may actually negate the need for second generation biofuels in much of the world. In fact many methods are well established, hence low-risk technologies, non-competitive with food crops and applicable on an industrial scale. We have to bear in mind however, that sadly the British climate and environment is not comparable to Brazil’s. We are in fact 35 times smaller and considerably wetter meaning the requirement to invest in second generation methods such as using municipal waste as a feedstock is crucial if we are to secure our own ongoing fuel supply.

Hannah

Photo courtesy of ozjimbob on Flickr, through a Creative Commons License

Follow us on Twitter @AbchurchComms

base 2010 (business and sustainable environment)

base 2010, the event where business meets sustainability, was held in the Excel centre on 16-17 March this year. The run up promotion to the event, which promised a plethora of prominent speakers, seemed too good to be true however the final turn out did not disappoint. Few conferences have managed to gather together such an influential list, with attendees from the government, NGO’s, advisory bodies, the FTSE 100 and leading national media. In fact, it often seemed, perhaps due to the size of the venue, that there were even more renowned figures present than delegates themselves.

Green-off

Given the event’s proximity to the national elections, the Q&A sessions and keynotes were dominated by MP’s and government advisers, not wanting to miss a key opportunity to plug their respective “red-green” and “blue-green” agendas and relevant party’s commitment to the cause. The resulting outcome of the successive speeches by Rt. Hon. Hilary Benn MP (Secretary of State for the Environment, Food and Rural Affairs) and Nick Herbert MP (Shadow Secretary) was strangely cohesive, which both parties pointing out the importance of sustainability on the corporate and social agenda after the financial turmoil of the last two years. Both speakers chose to focus much of their content on the issues of waste and landfill, highlighting the fact that waste is an opportunity, not a cost and stating their aims to make landfill sites obsolete. Benn pointed to the successes of the Landfill directive in encouraging new technologies which are highlighting the upside down way in which we talk about waste. Herbert couldn’t resist having a dig at the Labour Government’s lack of ambition when it comes to setting poignant targets, in particular for landfill tax, but while he agreed that business certainly needs a fiscal and regulatory strategy which would allow them to plan ahead, we must be careful to recognise that the overall regulatory burden on companies is too high.

There were a couple of surprises to this green-off, however, with Benn acknowledging the difficult environment for innovative high-risk technologies to attract investment and asking the conference “how can the government help with this problem?” Given that he carried on talking I can only assume that this was a rhetorical question, however, he demonstrated awareness of a key issue holding back the supposedly burgeoning cleantech world and perhaps even willingness for the government to consider a solution. Herbert, although less impressive and perhaps less rounded as a key political figure, also made some good points, stating that “natural resources are no more finite than the fiscal resources of the Treasury” and that the UK “makes a mistake of seeing the sustainability agenda as a burden.” Further to this he pointed out a solid sustainability strategy would actually help to uncover inefficiencies in our businesses as well as our economy as a whole, allowing continuing growth without long term commitment to the path of consumerism that we have trodden for so many years.

Carrot or Stick?
The key differences in messages really showed when discussing regulation. The Labour party remains committed to forcing sustainability on business through establishing a fiscal and regulatory regime which will punish avoiders. The Tory mentality was far more interested in working the carrot approach, relying on societal buy-in, which would essentially amount to a smarter form of procurement, encouraging community empowerment and private sector investment in new technologies, hence reducing the cost to the public sector and investing and encouraging through non-regulatory means. Micro-management or macro-management? Ensuring sustainability rather than encouraging sustainability? The vote is yours!

“We must work together”

Another highlight of the event was the Q&A session with Rt. Hon. Ed Miliband MP, Secretary of State for Energy and Climate Change. In his brief address before the grilling started, he attempted to salvage Copenhagen’s reputation, labelling the conference as a big step forward involving 80% of the worlds emissions producers, compared to Kyoto’s 45%. The importance of an attitudinal change was crucial to his agenda, encouraging people to talk about opportunities arising rather than dangers to be avoided and removing climate-change from the environmental box, instead making it about opportunity. As the world leader in the generation of offshore wind (since overtaking Denmark), the UK, Miliband promised, is in a great position to take advantage of this transition. “We must work together” he enthused about the public-private partnership. Kate Silverton, who appears to be enjoying a whole host of extra-curricular events, encouraged questions from the crowd which flew with the speed and kindness of machine gun fire. Topics covered included the lack of ambition with regards to the Feed-in Tariff, the skills shortage to embrace this new transition, the damage done by Climategate, Miliband’s thoughts on carbon offsetting (positive FYI), the controversial fairytale adverts on TV, party coalition on green issues (nuclear energy seemingly being the elephant) and what can be done to reconcile the demands of climate change with the short-termism requirements and attitude of the City. All credit due, Miliband handled the questions impressively, never breaking sweat or coming unstuck. Although, it has to be said he moved exceptionally quickly towards the exit at the conclusion.

The timetable of the event was so crammed with goodies, that planning was essential and sadly many, no doubt, highly informative lectures and discussions were impossible to attend. I did, however, attend one other top hit; Question Time with Peter Madden, chief executive of Forum for the Future, Philip Green, CEO of United Utilities, Richard Reid, the London Chairman of KPMG and Professor William Pope, representing England’s RDAs. This impressive panel commented on the relationship between sustainability and economic development, producing some interesting insights before answering questions on Britain’s broken society, institutional investment mindset and how the big companies were reconciling sustainable strategy with corporate strategy.

For me, the most interesting theme of the event was the challenge of aligning shareholder and stakeholder interests. It has been known for CEO’s to be sacked for not having their shareholder’s best interests in mind following the announcement of a new CSR strategy. This links in with the short-termism of the City and the never-failing requirement for rapid growth and immediate prosperity. Society has not kept up with the rapid growth of the last decades and adjustment is required. The financial markets have abruptly and painfully adjusted themselves, however social change is moving more slowly. Too slowly. Sustainability does not have to be about dying polar bears and palm trees in Scotland; it can be about opportunity and putting in place a foundation for a new and reliable future. If we do not move quickly we will miss out on the wave of opportunities rising. Those who lag behind do so at their own peril, whichever political party ends up in the driving seat.

Hannah

Follow us on Twitter @AbchurchComms

The Low Carbon Economy

Abchurch has one of the UK’s leading environmental practices and views the carbon market primarily in terms of its effect on investor confidence.

The world is on the edge of what US and EU Political advisor Jeremy Rifkin has dubbed ‘The Third Industrial Revolution’. This is a world in which we move away from traditional fossil fuel and uranium-based energies into a non-polluting, sustainable future for the human race.

In this new age investors are concerned not just with the impact that traditional commodities, such as oil, grain and minerals, have on a company’s profitability but also with factors such as the cost of carbon, sulphur dioxide, water and even holes in the ground. Indeed, Britain is widely expected to be routinely mining its landfill sites within the next decade to recover many of these valuable commodities whilst minimizing the energy usage and harmful emissions associated with extracting them from primary sources.

The investment agenda is no longer one solely of balance sheets and cashflow statements, however. Climate change concerns have fuelled the rise of Corporate & Social Responsibility in high streets and boardrooms across the world. This Triple Bottom Line approach to company reporting (financial, social and environmental) demands simple shorthands and metrics and there is none more convenient than ‘carbon equivalent.’ Hence the “low carbon economy.”

Research carried out in late 2008 amongst UK based fund managers for British Energy found that:
· 80% think that a carbon reduction strategy can have a positive impact on investor perceptions
· 2 in 5 believe that commitment to carbon reduction can have a positive impact on share price
· 25% see a growing media and public demand for carbon reduction commitment at the corporate level

The Carbon Trust’s March 2009 report ‘Global Carbon Mechanisms: Emerging lessons and implications’ reveals:
· The Clean Development Mechanism, specifically, has triggered over 4000 emission-reducing projects in developing countries
· It is likely to reduce carbon emissions by 2 billion tonnes by 2012

Climate Change Capital, just one of thousands of specialist environmental funds globally, has:
· over US $1.5 billion under management as of January 2009
· estimated that Clean energy (just one subset of the climate change market) was worth $148 billion in 2007
· predicted that current climate change needs require a future investment in clean energy of up to $45 trillion

No revolution is without its hazards, however. Indeed, many would argue that the focus on ‘low carbon’ has become an unhealthy obsession, with the same whiff of snake oil, get rich quick and too good to be truisms witnessed in the energy and silicon rushes of the first and second industrial revolutions. Hence the concept of “greenwash.”

One of Abchurch’s most important roles is to steer companies through this new communications landscape; taking carbon credit where it is due and avoiding tempting, but often meaningless hype. This experienced counsel, based on our team’s genuine earth science credentials, is just as true whether working with our intrinsically environmental clients, or with our broader customer base of companies who are simply playing their responsible part is a newly carbon-conscious world.

Justin

Image courtesy of Olof S on Flickr, through a Creative Commons License.

Internationalising Environmental Solutions Conference

Abchurch’s Green Team was in full force at the Internationalising Environmental Solutions conference last week held at the Imperial War Museum at Duxford, near Cambridge. The conference was jointly organised by EnviroTech (its director Hugh Parnell is a long-time friend of Abchurch) and The East of England International, with the support of the UK Department of Trade and Innovation. It aims to promote environmental technologies and increase the inflow of international investment and talent in the region. Remarkably the this is likely to be the only region to reach the UK government’s target of 10% electricity from renewables by 2010.

At the conference we saw an impressive number of high-calibre organisations, university centres, and investment incentives set up to promote environmental innovation and business development. Ending the conference on a high note, Abchurch was also mentioned in Hugh’s presentation as a preferred provider of PR services.

Justino & The Tsangaroo