Output
Green Monday: April 2011
The 25 billion pound investment opportunity - through the lens of a MAC curve
Arrive: 5:45pm / Start 6:15pm / Networking: 8:15pm / Close: 9:30pm
4th April 2011
Bank of America Merrill Lynch: King Edward Hall
2 King Edward Street
City of London
London
EC1A 1HQ
Event overview:
The £25bn investment opportunity – through the lens of a MAC curve
We want to challenge our hypothesis that there is £25bn worth of attractive investment opportunities in carbon abatement in the biggest 2,000 companies in the UK. We define “attractive” as an IRR of 16% or more, which is a better IRR than most company’s core business. Many people in the Sustainability Function want more evidence of the scale of commercially attractive investments.
Why it’s important
If this hypothesis is correct, we estimate this would be the biggest commercially-attractive investment class in corporate sustainability. Most importantly, it does not require subsidies nor the consumer / investor / employee to drive the agenda – it is a true win-win, with everyone making profit. Put it the other way round, it would be a commercial crime if it didn’t happen.
About MACC’s
Marginal Abatement Cost Curves are a highly visual and effective way of seeing the commercial returns on abating a company’s emissions. It allows a number of initiatives to easily be seen together, when they can add up to substantial investments. One of the most advanced MAC’s that we have come across was at the Royal Mail, which identified £38m worth of investment with an IRR of 16%. MACC’s work because they encourage quality data collection and use of the latest in technology innovation.
Our panel of experts
We have confirmed the following line-up of speakers;
- Marcel Brinkman, McKinsey – on the size of the investment opportunity
- Professor David Strong – applying MACC’s to individual buildings, key lessons from Royal Mail Group pilot
- Richard Tarboton, Head of Energy & Carbon, BT
- Joanna Lee, Chief Partnerships Officer, The Carbon Disclosure Project
The April Survey
We will use our monthly survey to try to capture the most comprehensive list of real carbon abatement examples in major companies. We will give any corporates who give us key information on investments in excess of £1m a major discount on attending our June conference on MACC’s. We hope to capture data from over 100 major UK corporates, which we will share with our community.
Who is it for?
In addition to targeting senior members of the Sustainability Function in FTSE350’s & equivalent (the core Green Monday’s audience), we are going to reach out to Finance Directors and other members of the Finance function. We want 180 people, including 40 from the Finance Function.