Herman Mulder's Blog

2011-03-21T18:27:00.001+01:00

see www.worldconnectors.nl and www.linkedin.com for my speeches/papers/opinions;

for linkedin connectivity: mulderherman233@gmail.com

for other mail: mrhermanmulder@gmail.com

2010-10-11T18:28:00.002+02:00

AMAZON YOUR BUSINESS: a wonderful book with 40 cases of sustainable Amazon products, collected and written by Meindert Brouwer (ISBN 978-90-811942-1-1), lifetime Dutch conservationist. It shows how nature can work for business. Beautiful, very inspiring, taste for more: next book should be AFRI-CAN YOUR BUSINESS.......

2010-09-17T08:13:00.003+02:00

LEVERAGING 0.8%: REBALANCING FROM (direct & indirect) public funds based on top down public policies(from here) to governmental institutions (there) for mostly humanitarian reasons, TO private sector (business and civil society organisations') collaboration and "bottom-up co-creation" with local communities (with important role for women and youth) for focused livelihood/cluster development and creation of entrepreneurship (there) facilitated by public guarantees(from here).

Export Credit Insurance schemes (with political risk protection for exporters by government here) are an interesting template to redesigned: create a Social, Biodiversity&Climate Impact Guarantee Scheme, whereby the guarantee (for which a fee must be paid!) will only be paid out if certain preset public policy criteria will have been met (improved health, education, productivity, less flooding, etc).

A variant hereof may be to create a Carbon Floor Price Guarantee Scheme to accelerate the renewable/clean energy agenda (eg. Euro 30/ton in 2020?)

(nb am working in India on a $20mln Social Impact Bond)

2010-09-14T18:38:00.005+02:00

WHATABOUTS: for all my "whatabouts", see my blog of 9 January 2010; these days in particular work on: challenging companies on their CSR/ESG/PPP-practices; the Euro 15mln SEWA social impact bond (with SEWA/IFC/YES/Taellberg/FMO); roll-out of TEEB/GRI (!); "new development cooperation" with more entrepreneurship and different government role; NCDO/Worldconectors in 2011.

2010-09-07T11:03:00.002+02:00

THE TRIPLE TOP LINE: No Planet: No People: No Profit!
Companies can be bailed out by banks, banks by governments, governments by international financial institutions, BUT the Planet & Nature cannot bail us out, definitely not all 6.5bln people (and growing....): we, government and business, MUST change our economic compass. See www.teebweb.org

2010-09-03T13:22:00.009+02:00

HAKUNA MATATA? We all suffer from unintentional blindness; in my days at ABN AMRO we met each year with CRO's of the 12 major international banks to share what was keeping us awake during the night: we all had a different beast, or rather gorilla (remember the video " who saw the gorilla..."?). None of us even suspected that the whole zoo("the system") would revolt in 2007/8. Have we learned from our professional and human shortcomings? Are we sufficiently observant, anxious, imaginative to learn from this experience only 2-3 years ago? I CHALLENGE YOU my readers to present to me (and others) which signs on the wall or gorilla's on the basketball field we do not see. First prize: A HONORARY GORILLA!!

(as inspiration, please read my earlier blog, January 9, 2010: We cannot Walk Alone: Beware of Monday 12 October 2015....)

2010-09-01T13:09:00.004+02:00

THE CASE AGAINST CORPORATE SOCIAL RESPONSIBILITY: CSR an illusion, even potentially dangerous because it distracts from the core responsibility towards shareholders? Aneel Karnami argues in WSJ 23/8 that the case for CSR is either irrelevant (there were business and and public interests are aligned) or ineffective (where shareholder interests are opposite to public interests). The issue is whether or not profits and public good are at odds.

Well, business can not be profitable without customers, business will fail in failed societies, ecosystem degradation has direct impact on the business performance, so does social unrest. Picturing the contradiction as in the WSJ is false: thriving businesses make sure that their mission is aligned with the realities, risks and opportunities in the societies in which they operate. So the case for CSR as "irrelevant" becomes increasingly relevant, mainstreamed. Those CEO's who do not embrace CSR as a fundamental driver for their business in the interest of their shareholders and stakeholders will face desertion by their stakeholders (incl talent, customers) and extinction over time. Those CEO's who adopt CSR as core to their business should consider being leaders, rather than adaptors.

So, the case for CSO: corporate social opportunity......it's really there!

2010-08-31T08:18:00.005+02:00

INTERNATIONAL DEVELOPMENT COOPERATION NEW STYLE: from government-to-government Aid to private sector-to-community Partnership, facilitated by governmental risk-sharing support ONLY if its development criteria are being met. We are working on a (pilot)"cookstove bond" for the purchase of efficient cookstoves and solar lanterns by some 200.000 poor households, to be repaid by affordable monthly micro-payments. The bond will be placed with (social) investors. The bond will have a government "wrap" (guarantee) that if it would not be fully repaid AND all pre-set social impact criteria have been met, the government will pay. A perfect form of complementarity of objectives and synergy of resources where they might be best used. This structure can also be used in other sectors than clean/renewable energy, such as sanitation, health, infrastructure, etc.

A governmental guarantee scheme (similar to the well-established and successful official export credit insurance/investment guarantee schemes) should offer opportunities to steer and accelerate the governmental agenda on climate (offer a carbon floorprice at, say, Euro35/ton until 2020), biodiversity, etc.

Multiple agendas by multiple stakeholders with everyone meeting his objectives: that's the challenge and opportunity: more binding&bundling across themes, sectors, societies! A new polder....?!

2010-08-23T18:17:00.005+02:00

DUTCH POLITICS: look for what binds us, not what separates, and then bundle forces for those shared priorities; we don't want stagnating partisanship between party-lines like in the US Senate, rather we need active ad hoc partnerships, if we cannot reach an overall accord.There is nothing wrong with issue-specific, changing majorities, lead by a minority government which binds people and bundles issues!

2010-08-06T10:57:00.003+02:00

DUTCH CABINET FORMATION: there are good strategic & tactical reasons why the new UK government has exempt international development cooperation from major budget cuts. But equally, there are very good reasons to do more and, foremost, better with ODA budget allocations. If only government would change its lense: "return on collaboration" with private sector in NL and in south can not just increase efficiency and effectiveness, but also more by providing a major leveraging effect: social impact bonds , premier risque, insurance/guarantee systems should be at the heart, making use of complementarity of functions, focus on communities small scale entrepreneurship, greening the economy, sustainable&responsible value chains.

Worldconnectors (www.worldconnectors.nl) wrote a paper on this: "The Business role in development cooperation" (chaired by Nanno Kleiterp/CEO FMO and myself).

THIS THE MOMENT

2010-08-05T10:02:00.004+02:00

KNOWING OUR BOUNDARIES: we are clearly exceeding our planetary boundaries, ref my earlier blog on Malthus, Marx and Murphy (12 October 2015!). But the issue of knowing your boundaries is much broader, including the financial sector.

Strategic boundaries for banks are even more relevant in the context of the explicit or implicit backstop of society in case of bank failures. In my view, the strategic boundaries in particular of "system-banks" should be set by the direct interest and the real economy of the "home-country/ies" of such bank.

So look at trade and investment flows of outbound and inbound clients in such home-country. Why take a significant, long term risk on a foreign sovereign or banking system if this has no relationship with the better functioning of the real economy in the home-country. Why not invest in (green) innovation in your own home country rather than have significant sovereign bond oriented investment portfolios in countries which are not core to the real economy of your home country?

2010-08-04T19:10:00.006+02:00

FORWARD LOOKING FINANCIAL SECTOR NEEDED: The financial sector, i.e. banks, long term investors (like pension funds, insurance companies), stock exchanges, rating agencies, auditors, research firms have major role to play to transform our old economy into a new with recognition for the costs and returns associated with Natural Capital and Human/Social Capital. Read most recent (july 2010) TEEB report "Business&Biodiversity" on www.teebweb.org for the enormous opportunities which the new, green &responsible economy will offer to business!

2010-08-04T19:06:00.005+02:00

HEROES: Atiur Rahman, Governor of the Central Bank in Bangladesh; I have met many central bankers in my banking career, but he was the first one who has a genuine interest in the real economy of his country and sensing very frequently in the field how the banks & mfi's are serving their clients and society.

2010-08-04T09:20:00.006+02:00

CHANGE IS ACCELERATING: June 2010: the creation of IIRC (International Integrated Reporting Committee, with GRI as one of founding members and GRI chair Mervyn King as vice-chair; following the requirement for this by the Johannesburg Stock Exchange; www.iirc.org) and the publication of the Business& Biodiversity Report by TEEB ("The Economics for Biodiversity & Ecosystems": www.teebweb.org) are 2 major events shaping the future of sustainable business.

Moreover, the rethinking of Dutch ODA (Official Development Cooperation) i.a. by Worldconnectors (www.worldconnectors.nl) towards more entrepreneurship/community/private sector in "south", more public-private cooperation and financial instruments (such as Social Impact Bond as announced by me at the YES/Rework Summit in Leksand in Sweden in June) in "north" will result in more efficient, effective, sustainable initiatives for a "better world".

Effective change in the private sector is accelerating, even while political initiatives addressing "global public goods" seem to stagnate.

2010-02-02T12:49:00.005+01:00

BETTER BANKING

Apart from the public debate on drivers & compensation, on "right-sizing and -scoping", there is an other priority: how can banks contribute to the global agenda on public goods (and bads). Also, who wants to own in 2012 a "brown bank", as we are moving to a "green and just economy", with proper consideration for natural and social capitals.

Banks must develop minimum standards and policies for Environmental, Social, Ethical, Governance (ESEG) issues in their core decision processes on lending, investing, trading and advisory (client-first!) practices, with full public disclosure on standards and performance. They may build on the Equator Principles (EP), the Principles for Responsible Investment (PRI) and also on the OECD Guidelines for multinational enterprises, the Ruggie-Framework for Human Rights, Global Compact, Earth Charter International. Such standards must be included in training, management development programs and personal targets/KPIs (15%). Public verification of performance must take place by an external assurance statement. Such ESEG factors should be explicitly included in KYC due diligence evaluation on business clients. ESEG issues must be key issue for consideration in Boards. The composition of such Boards should also reflect the importance of ESEG for long term strategy. A separate external multi-stakeholder Advisory Council (incl. clients, civil society organisations, etc) should be instituted. Creating a separate Foundation to support initiatives by employees and civil society organisations to foster environmental sustainability and social justice.

See for more SPECIFIC RECOMMENDATIONS on this subject: WWW.WORLDCONNECTORS.NL

2010-02-01T14:20:00.009+01:00

WRR Rapport Minder Pretentie, Meer Ambitie

Mijn conclusie: wel minder pretentie (terecht), maar niet meer ambitie (maar dat kan nog komen)

De diagnose is gedegen en gebalanceerd, de issues en mythes liggen duidelijk op tafel. Het rapport is daardoor een buitengewoon goed uitgangspunt voor nieuw beleid, nieuwe samenwerking, nieuwe instrumenten met betere, blijvende resultaten. Maar het Rapport is ook vooral geschreven vanuit de rol van de overheid, waarvan de opstellers zelf erkennen dat deze vooral katalyserend en flankerend moet zijn.

De beperkte consultaties met het bedrijfsleven hebben hun effect op het rapport gehad: multi-stakeholder- en valuechain- benaderingen krijgen ondanks onze traditie van internationale handel en belangrijke initiatieven zoals IDH nauwelijks aandacht. Het begrip "coherentie" beperkt zich tot de publieke sector. NethAid is een weer vooral op hulp gericht initiatief, zonder dat ook private sector kennis, expertise en op ondernemerschap gerichte initiatieven tot hun recht lijken te komen.

Mbt het bedrijfsleven beperkt het rapport zich tot aansluiting bij bestaande, weinig ambitieuze initiatieven. Het rapport memoreert weliswaar, in navolging van de Wereldbank, dat de private sector motor is voor groei, maar doet daar in het rapport verder niets mee. Het effect van financiele ondersteuning-istrumenten (EKV, IG) wordt onderschat. De noodzaak en kansen van de "groene economie" worden niet vermeld. Net zomin als internationale normen & waarden voor het bedrijfsleven (ref OECD Guidelines). De noodzaak tot transparantie wordt in beperkte mate vermeld: naast het GRI (voor niet-financiele bedrijfs-rapportage) zou ook product-certificatie voor ontwikkelings-relevante produkten (UTZCertified: koffie, thee, cacoa, palmolie, suiker, soja, etc) meer aandacht hebben moeten krijgen. De positieve effecten van publiek-private sector samenwerking zou centraal in het rapport hebben moeten staan. Initiatieven ter ondersteuning van groen, locaal ondernemerschap (zoals bv BiDNetwork) zouden ondersteund moeten worden. De rol van FMO verdient in dit kader bijzondere aandacht.

Kortom, het rapport verdient een vervolg, in de beste traditie van publiek debat, multi-stakeholder-benadering, innovatie en met ambitie.

2010-01-13T16:19:00.003+01:00

TO TEEB OR NOT TO TEEB….. THAT’S NOT THE QUESTION
By Herman Mulder, Advisory Board TEEB; Boards of i.a. Worldconnectors, GRI, Tomorrow’s Company
“The Economics of Ecosystems and Biodiversity”-Study (TEEB) is a major study initiated by the EU with support from i.a. UNEP, IUCN the create a scientifically grounded methodology to value the Natural Capital (ecosystems, biodiversity) and the costs and benefits of making use of it: payment for ecosystem services (PES). The study includes reports for international policymakers, local administrators, business, citizens. The final report will be issued in October 2010. The business report is currently under development and addresses dependencies and impact of business activities in their value chain. Data collection, “best of breed”-case studies are being collected and considered as reference material. The outcomes of this study should offer business material to include PES in their mainstream business operations. It should also assist more advanced disclosure practices by business: Integrated Reporting(supporting risk&opportunity analysis by investors) and Product certification. Corporations will have a unique opportunity to show leadership to strengthen their license to operate and branding with their stakeholders by engaging themselves with this study. Young professionals are in this context crucial “change agents”.

(excerpt of speech for "Leaders for Nature", Amsterdam)

2010-01-09T17:55:00.006+01:00

HERMAN MULDER:

Independent Advisor on “the business case for environmental, social, ethical, governance issues”

PAST ACTIVITIES

HERMAN MULDER (1946) retired in July 2006 from ABN AMRO Bank after 27 years holding leading positions in relationship management (notably energy), defaulted loan restructuring & recovery, project finance, syndicated loans. Since 1995 he was Global Head of Structured Finance and since 1998 Senior Executive Vice President/Director-General (SEVP/DG), Head of Group Risk Management, Co-chairman of the Group Risk Committee. Since 1998 he lead the ABN AMRO’s global initiatives in Sustainable Development (SD), in which the bank was recognized the financial sector leader (i.a. Winner of the WEC Gold Medal in 2006 and the FT/IFC Sustainable Bank of the Year in 2007). He was the creator and first chairman of ABN AMRO Group Foundation. In 2002 he was the initiator of the ground-breaking voluntary financial sector-initiative “the Equator Principles for project finance” (adopted in 2003, now adopted by more than 70 major financial institutions ). He was actively involved in the creation of NFX ( a joint platform between the Dutch government and Dutch banks focused on finance for development).

In November 2005, he was made a knight in the Royal Order of Oranje-Nassau for his initiatives on sustainable development, the Equator Principles in particular.

In the period 2000-2004 he was a non-executive Board Member of the Bank of Asia (Thailand). He is a frequent speaker/panelist (i.a. at the Clinton Global Initiative, TERI-DSDS/Delhi, Taellberg Forum, universities), author and independent advisor on a broad range of issues: risk management, finance for trade & development, public-private cooperation, sustainability (including : clean energy; climate challenge & opportunity; inclusive finance for development; microfinance, notably in India; environmental , social and ethical standards; supply chains; human rights; social venture capital mobilization, etc).

CURRENT ACTIVITIES

In mid 2006 he chose to retire from ABN AMRO to become an independent advisor and board member to promote the role of the (large and SME) business sector in sustainable development worldwide in many different capacities, ranging from climate issues to social entrepreneurship, from advising & mediation to business development & finance.

He is a member of i.a. the Boards of: GRI (Global Reporting Initiative), Utz Certified/Good Inside, NCDO (Dutch National Committee for Development Cooperation), Steering Committee of the Worldconnectors, BiD (Business in Development, supporting start-up companies in developing countries), ABN AMRO/RBS Foundation India (Mumbai: sustainable livelihoods, biodiversity), Social MicroFinance Foundation, MicroSave (Lucknow, India: capacity-building for microfinance sector), the Consensus Building Institute (CBI, Boston), Trustee of Tomorrow’s Company (London), Eikosphere Foundation(Los Angeles), member of project team for Rework the World/YES. He is an advisor to the Council of the Earth Charter International , Steering Group member of Global Compact Netherlands, Senior Advisor to the Club de Madrid/UN Foundation on climate issues. He is a member of the Board of NL-NCP (National Contact Point) to deal with grievance process for the OECD Guidelines for Multinational Corporations, member of the Advisory Committee of the annual DSDS/TERI conference (Delhi), member of the judging panel of FT/IFC Sustainable Bank of the Year, member of the VBDO (society for sustainable investors) judging panel on supply chains, member of the Advisory Board of TEEB (“The Economics of Ecosystems and Biodiversity”, a major EU/UNEP/IUCN/UFZ study: www.teebweb.org), member of the 2008 Business Steering Committee for UN-FfD (UN Finance for Development), member of the core-faculty of the Business Leaders Program on Poverty Reduction, organized by the Prince of Wales’ Foundation and the University of Cambridge, as well as a regular lecturer at its Business & Environmental Program. He served as a senior advisor on climate issues to Global Compact (New York) and WBCSD(Geneva). He is a member of the World Bank Extractive Industries’ Advisory Group. He is active in numerous national and international civil society organizations, incl. with NGO’s, such as a (business-) member of the Advisory Board of OXFAM-NOVIB. In July 2007 the US magazine Treasury & Risk Management named him among the top 100 most influential people in global finance.

Email address: mrhermanmulder@gmail.com. Also www.hermanmulder.blogspot.com.Other references: www.worldconnectors.nl; www.globalreporting.org; www.teebweb.org; www.tomorrowscompany.com; wwwbidnetwork.org; www.utzcertified.org; www.oesorichtlijnen.nl/english/ncp-national-contact-point

phone: +31207997662; mobile +3120653369879;

adress: Regus B Tower, Strawinskylaan 337, Suite 3.02, 1077XX Amsterdam NL

Amsterdam 1 January, 2010

2010-01-09T17:43:00.004+01:00

WE CANNOT WALK ALONE.....!

(and beware of Monday 12 October, 2015.......; enter: Malthus, Marx and Murphy....)

by: HERMAN MULDER

The present crisis

The 2007-2009 financial crisis was a perfect "black swan" event: unexpected, with broad and deep impacts; and, with the benefit of hindsight, it was also retrospectively rationalised by many "experts". We got it all "sensationally" wrong: bankers (like myself), policy-makers, supervisors, auditors, research analysts, economists, civil society itself. And even as the crisis was unfolding, many initially did not consider its seriousness. We saw dangers of shocks, but underestimated the confluence and impact thereof.