Rowan dowland v2
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Transcript of Rowan dowland v2
session 7 Board
Chair / Presenter: John Baistow & Helen Clarke • Board renewal • MD informal review
assessing project practicality & risk
1. Shared value – creating value with values
2. Investor engagement influences investment section
3. Identifying and managing risk
4. Collaboration is critical
5. Measuring impact
1. Cooperatives make a significant contribution to socio-economic development, particularly on poverty reduction, employment generation and social integration
2. Cooperatives offer a diverse, values-based approach to business
which can provide a sustainable source of revenue for communities and individuals
3. Cooperatives play an important role amongst a diverse corporate ecology, strengthening communities socially, economically and environmentally
We have a powerful and positive story to tell when it comes to financing community development
a global movement of cooperation
some impressive coop numbers • 1 billion owners of cooperatives globally
• Help secure the livelihood of 3 billion people
• Employ 20% more people than all the multinationals
• The worlds top 300 cooperatives turn over $1.6 trillion
equivalent to the GDP of Canada
• Three times as many cooperative owners as investors in the world
• Cooperative banks did not contribute to the GFC: market share;
France 45%, Netherlands 40%, Germany 25% and Italy 20%
• 1600 Australian cooperatives in finance, insurance, agriculture and
farming, health, retail, housing, manufacturing and arts sectors
what we knew and now know
The key to making a profit and positive impact is actually to make a positive impact in such a way that generates profit.
However, a new and positive post GFC trend is seeing the emergence of businesses that exist to create profits by
creating social and environmental benefit.
a new narrative – rethinking capitalism, the creation of shared value
Commonplace? No
Obvious? Yes
a new narrative – rethinking capitalism, the creation of shared value
“Not all profit is equal. Profits involving a social purpose
represent a higher form of capitalism, one that creates a
positive cycle of company and community prosperity”
Michael Porter & Mark Kramer
Harvard Business Review January 2011
Shared value, transformative business thinking. Enhancing shareholder value whilst simultaneously advancing the economic, social, environmental & governance conditions in the communities where we operate; not in a way that is marginal to our business but in a way that is central to everything we do as a customer owned responsible bank
social interests,
expectations, needs & values
governance, risk, compliance
interests, expectations,
needs & Values
environmental interests, expectations, needs & Values
economic interests, expectations, needs & values
Reconceiving products and
markets
Looking at money
through a different lens
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purpose
Reconceiving products and
markets
Looking at money
through a different lens
1. Renewable energy
2. The welfare of vulnerable people in the community
3. Quality of education
4. Climate change
5. Housing affordability
6. Sustainable housing design
7. Loss of biodiversity
Issues currently most important to our customers who own the bank
Shared value, transformative business thinking. Enhancing shareholder value whilst simultaneously advancing the economic, social, environmental & governance conditions in the communities where we operate; not in a way that is marginal to our business but in a way that is central to everything we do as a customer owned responsible bank
Reconceiving products and
markets
Looking at money
through a different lens
1. ADI safety and security
2. Highly regulated APRA and ASIC environment
3. Deposit guarantee
4. Established marketplace
5. Guaranteed return
6. Fee free
7. Accessible to non sophisticated investors
Responsible cash as an asset class
Shared value, transformative business thinking. Enhancing shareholder value whilst simultaneously advancing the economic, social, environmental & governance conditions in the communities where we operate; not in a way that is marginal to our business but in a way that is central to everything we do as a customer owned responsible bank
Reconceiving products and
markets
Looking at money
through a different lens
1. Credit risk
2. Reputational risk
3. Regulatory risk
4. Alignment with the bank’s purpose
5. Alignment with investor values, interests, needs and expectations
Identifying and managing risks
Shared value, transformative business thinking. Enhancing shareholder value whilst simultaneously advancing the economic, social, environmental & governance conditions in the communities where we operate; not in a way that is marginal to our business but in a way that is central to everything we do as a customer owned responsible bank
Reconceiving products and
markets
Looking at money
through a different lens
• It’s all about impact
• Non financial measures of performance
• Financial reporting
• Sustainability reporting
• Integrated corporate reporting
Measurement Social and environmental return on investment
Shared value, transformative business thinking. Enhancing shareholder value whilst simultaneously advancing the economic, social, environmental & governance conditions in the communities where we operate; not in a way that is marginal to our business but in a way that is central to everything we do as a customer owned responsible bank