Planetary Awareness Driving the Green Transition

HAZEL HENDERSON, D.Sc.Hon., FRSAPresident, Ethical Markets Media (USA and Brazil)

Author, Ethical Markets: Growing the Green Economy

Ethicalmarkets.com/EBFBiomimicry.net

Introduction and

Overview

=FINANCE at the SERVICE

ofHUMAN DEVELOPMENT

+EVOLUTION of ALL LIFE

onEARTH

ETHICAL BIOMIMICRY FINANCE™For 21st century “ANTHROPOCENE AGE”:

starts with Science

• Earth Systems Science, NASA 1979• Biology, Ecology• Geology, Hydrology, Atmospheric Chemistry• Human Behavioral Science• Human Brain and Endocrinology• Anthropology, Psychology, Sociology• Ethical Biomimicry –Innovation

Solar irradiation versus established global energy resources Solar Generation 6, EPIA 2011

LEADING EDGE TECHNOLOGIES MIMICKING NATURE

…The Sun

…Insect wings

…Living cell membranes

...Green plants chloroplasts

…Gravity

…Natural decay processes, fermentation

Oceans and other global processes…Viruses

…Amino acids, Microbes

…Insect Pheromones, microbes, fungi

…Fireflies

…Plants, wild species

…Human immune system

DNA, RNA codes, viruses, bacteriaHuman Intelligence, knowledgeEye

…The Sun

…Insect wings

…Living cell membranes

...Green plants chloroplasts

…Gravity

…Natural decay processes, fermentation

Oceans and other global processes…Viruses

…Amino acids, Microbes

…Insect Pheromones, microbes, fungi

…Fireflies

…Plants, wild species

…Human immune system

DNA, RNA codes, viruses, bacteriaHuman Intelligence, knowledgeEye

…Fusion reactors

…Solar arrays and sails

…Osmosis, Fuel Cell membranes

…Solar photovoltaic cells

…Dams, hydropower

…Biomass energy conversion

Energy: Ocean thermal, tidal and wave generators

…”Nanotechnology,” molecular assemblers

…Protein-based catalysts, assemblers

…chemical attractants, biological pest control

…Luciferase

…GMOs, hybrids,

…Monoclonal antibodies, interferon, insulin

Biotechnologies…Genetic engineering, cloning

Artificial intelligence…Expert Systems

Cameras

…Fusion reactors

…Solar arrays and sails

…Osmosis, Fuel Cell membranes

…Solar photovoltaic cells

…Dams, hydropower

…Biomass energy conversion

Energy: Ocean thermal, tidal and wave generators

…”Nanotechnology,” molecular assemblers

…Protein-based catalysts, assemblers

…chemical attractants, biological pest control

…Luciferase

…GMOs, hybrids,

…Monoclonal antibodies, interferon, insulin

Biotechnologies…Genetic engineering, cloning

Artificial intelligence…Expert Systems

Cameras

NATURE’S MODELS - BIRDSTECHNOLOGIES - AIRPLANES

© Hazel Henderson 1987; Paradigms in Progress, 1991, 1995; updated 2006

Implications for Traditional Economics and Finance• Investment models fail

⁻ focused on equilibrium⁻ based on theories, ideologies, norms

• Globalized Finance Systemic Risks⁻ unstable, HFT → collapse

• Destabilizing Every Local Social System and Ecosystem

• Mistakes MONEY (unit of account) for WEALTH; discounts real wealth and future–errors encoded in equilibrium math models

⁻ e.g., Arrow-Debreu

• Based on Externalizing Costs⁻ e.g., Carbon “Bubble” equals trillions of dollars (Carbon Tracker)

Re-Training Economists and Asset Managers, Investors:

• Few courses – most business schools teach old models

• Books, papers, speeches inadequate• How to engage TRADITIONAL and MAINSTREAM

FINANCE, INVESTORS• SRI, TBL, ESG, green, integrated ethical investments

have positive impact.• Principles of Ethical Biomimicry Finance™ builds on

and deepens to include scientific basis for transition from fossil Industrial Era to Solar Age

We the signers hold this biological truth to be self-evident that the human species is interdependent with all other life forms on Planet Earth. Therefore, human societies, cultures, values and belief systems that are informed by and modeled on Life's Principles, which are strategies universal to all organisms, should provide the basis for all production and exchange of goods, community structures and services. This includes the design of monetary systems, investments, banking, financing, bartering, reciprocal exchange, payments, crowdfunding, compensation and unpaid gifting, sharing, cooperatives, reproduction of future generations, provision of public goods, infrastructure, collective health, education and life-supporting services.

STATEMENT ON TRANSFORMING FINANCE BASED ON ETHICS AND LIFE'S PRINCIPLES © 2012

1. We affirm that these collective life-supporting activities, conventionally categorized as "economies" and "finance," are in truth embedded in human societies and cultural values – in turn, embedded in planetary ecosystems and biodiversity of life which are irreducible to symbolic tokens such as money or mathematical abstractions such as compound interest or classification as "resources," "property," or even as "global commons."

PRINCIPLES from the Statement On Transforming Finance Based On Ethics And Life's Principles © 2012

2. Money markets and finance are useful human inventions and as such are good servants of evolutionary higher-purposes, but can be bad masters. Trading and exchanging are basic strategies of humans and all living species. Financial and economic systems are not functional analogues of ecosystems. Money and other proxies have no analog in Nature which operates on direct exchange of materials, information and services.


3. Our approach to the human activities conventionally categorized under "finance," "investment," "savings," banking and monetary systems is to reframe these under our scientific knowledge of our true condition expressed as Life's Principles and what is now known about life's evolution on Planet Earth. Accordingly, we recognize that human societies cannot measure their "progress" as growth of their GNP-measured, money-denominated economic sectors. Growth is not maximized by any species but rather the whole living system is optimized.


4. When we assess technological and social innovations, we start our due diligence processes by examining the viability of such innovations and potential success of enterprises and projects by applying Life's Principles. Only after applying this screen and its implicit design opportunities will we then design appropriate models of finance, organizational forms, stakeholders' relationships, governance, risk-assessment, compensation and other valuations of ecological sustainability, social equity, health and contributions to peaceful human evolution.


5. We acknowledge that these goals and investing models can transform finance and embody social innovations that will be disruptive to incumbent industries, financial groups and major sectors of our Industrial Era societies which are now widely recognized as unsustainable.


6. We avoid employing many of the conventional tools of financial analysis (e.g., Modern Portfolio Theory, Capital Asset Pricing Models, Black-Scholes Options Pricing, Value-at-Risk and other risk analysis; nor discounting to "present value", etc.) nor those methods based on conventional economic assumptions: e.g., "efficient markets," "market completion," "rational actors," "bounded rationality," etc. Rather, we look to the new scientific knowledge of human behavior, endocrinology, brain sciences, genetics, anthropology and other insights into the human condition gained through expanding awareness and consciousness of our true human condition. We commit to learning continually, with the humility engendered by these new understandings, as well as the careful experimentation based on Nature's 3.8 billion years of successful learning and innovation.


7. We further understand that what is termed as "economies" and "financial systems" are emergent properties: complex adaptive systems generated by actions emanating from collective human consciousness, cultures and belief-systems and that these forms and expressions are downloads from these "cultural DNA codes," resulting in cultural artifacts and physical forms (such as skyscrapers and computers), as well as similar forms emanating from the world's spiritual traditions (e.g., cathedrals and books). We acknowledge and affirm the evolution of the technological array of tools created by humans. These expressions of human creativity are a result of our focus on materialism, reductionist rationality and its Cartesian mentalities prevalent since the Industrial Revolution, and we rejoice that these are evolving toward Life's Principles and are now reintegrating within our higher consciousness. We endeavor to use Life's Principles to create conditions conducive to life in all human activities and systems.


8. These collective products of our levels of awareness, consciousness and knowledge evolve as individuals learn. Leaders emerge in human societies and become early adopters of new knowledge and scientific observation, as well as ethical principles, such as the "golden rule," cooperative agreements on sharing Nature's lessons, co-evolutionary models and altruistic examples.


9. Thus, we acknowledge that our commitment to transforming finance, its models and selection processes can lead to re-design of money, banking, finance, investments, patents, legal and governance systems. This will require reintegration of human knowledge, mentoring by Nature's genius, and whole systems-thinking, operationalized through whole human beings integrating mind, heart, body and wisdom based on evolving higher levels of consciousness.


Examples of Ethical Biomimicry CompaniesBiomimicry 3.8, MTEnvision Solar, CAEthical Markets Media, USA &BrazilEqual Exchange, MAGrainPro, NHGreen Garmento, CAHawthorne Valley Farm, NYMosaic Inc., CANatcore Technology, NJNatura, BrazilPantheon Chemical, AZSky Factory, IAWhite Dog Café, PAWhole Foods Market, USAFull disclosure: Principals of Ethical Markets are investors in some of these companies.

Co-Organizers:Janine Benyus, Author, Biomimicry: Innovation Inspired by Nature; Co-Founder, Biomimicry 3.8

Hazel Henderson, Author, Politics of the Solar Age, etc.; Founder, President, Editor-in-chief, Ethical Markets Media

SignatoriesCo-Chris Allen, CEO, Biomimicry 3.8 Dayna Baumeister, PhD, Co-Founder, Biomimicry 3.8Andrew Bellak, CEO of StakeHolders Capital Michael Ben-Eli, Founder, The Sustainability LaboratoryBenjamin Bingham, Founder, 3Sisters Sustainable Management Louis and Sandra Bohtlingk, Founders, CareFirstWorld Ltd. Mariana Bozesan, Founder, AQAL Investing Frank Bracho, former Ambassador of Venezuela to IndiaEllen Hodgson Brown, JD, Author, Web of Debt Jamie Brown, Project Director, Basel Agency for Sustainable Energy (BASE)

Fritjof Capra, author The Tao of Physics Christina Carvalho Pinto, President, Full Jazz Communications Brendan Cassidy, student, University of Northern Jacques Chirazi, Biomimicry CH and swisscleantech association Katherine Collins, Honeybee Capital, Boston Lina Constantinovici, MBA, GrowVC USThais Corral, President, CEMINA/SINAL Leslie Danziger, Co-founder, Solaria Corp and Lightpath Technologies

Susan Davis Moora, President, CapitalMissions.com Guy Dauncey, Executive Director of BC Sustainable Energy Association

Dee Dickinson, retired CEO of New Horizons for Learning Peter Ellyard, Author, Designing 2050 & Destination 2050 David Fox, Co-founder, Biomimicry 3.8 Institute Edward Fullbrook, Editor, Real World Economics ReviewJohn FullertonFounder, Capital Institute Orio Giarini, The Risk InstituteChristian Haeuselmann, swisscleantech Joan Halifax, Upaya Zen CenterMarilyn Hamilton, Founder, Integral City Michael Hopkins, CEO, MHC International Ltd; CEO, CSRFIBrent N. Hunter, Chairman, Spirit Rising Productions Giles Hutchins, Author, The Nature of BusinessGarry Jacobs, Board Chairman, World Academy of Art & Science AJ Johnston, Executive Director, Mindful Peacebuilding

SIGNATORIES from the Statement On Transforming Finance Based On Ethics And Life's Principles © 2012

Signatories continuedAlan F. Kay, Co-Founder, Ethical Markets Media Georgia Kelly, Director, Praxis Peace InstituteMargrit Kennedy, Founder, Money Network Alliance Ashok Khosla, President IUCN and Club of RomeJohn L. Knott, Jr., The Noisette Company, LLC Cary Krosinsky, Exec Director, Network for Sustainable Financial Markets

Satish Kumar, Editor-in-Chief, Resurgence & Ecologist Giuseppe La Manna, CEO, EcoLogix Startup SolutionsLeland Lehrman, Managing Partner, Fund Balance Marc Luyckx Ghisi, author, The Knowledge SocietyElsie Maio, Founder, Humanity, Inc./SoulBranding℠ Institute Fernando Byington Egydio Martins, CEO, Propósito BrandingKozo Mayumi, Bioeconomics Faculty of Integrated Arts and Sciences Terry Mollner, Chair, StakeHolders Capital, Inc.Oscar Motomura, President, Amana-Key Desinvolvimento & Educacao Timothy Jack Nash, President, Strategic Sustainable Investments,Belden Paulson, author, "Odyssey of a Practical Visionary“ Lisa Paulson, cofounder High Wind ecological communityAnn Pettifor, Director, Policy Research in Macroeeconomics (PRIME) Jonathon Porritt, Founder Director, Forum for the FutureGilles Raveaud, Assistant Professor of Economics, University Paris Paul H. Ray, Co-author, The Cultural Creatives Vicki Robin, author, Your Money or Your Life Nancy Roof, PhD, Founder/Editor Kosmos JournalMary Carol Rose, Beyond Financial Paradigms, LLC Elisabet Sahtouris, PhD, Evolution Biologist, FuturistJulie Sammons, Bay Area Biomimicry Network Homero Luís Santos, Director, Fractalis - Consultancy on Sustainability

Rosalinda Sanquiche, Executive Director, Ethical Markets Media Allan Savory, Co-founder of the Savory InstituteSimran Sethi, Journalist Kelly Distinguished Scholar in Residence, St. Catherine UniversityVandana Shiva, Research Foundation for Science Technology & Ecology Charlene Spretnak, author of Relational RealityJet Thurmann, Quantum Care Center John Todd, President, Ocean Arks International, University of Vermont

Stuart Valentine, CenterPoint Investment Strategies Terry Waghorn, CEO and Founder, KatervaAnders Wijkman, Vice President, Club of Rome Eva Willmann de Donlea, Sustainability Intelligence Pty Ellie Winninghoff, Journalist, DoGoodCapitalist.com

SIGNATORIES from the Statement On Transforming Finance Based On Ethics And Life's Principles © 2012

We invite you to add your name to these co-signers!

And to help promote the use of the Principles of Ethical Biomimicry Finance™

to the financial community and all investors!

Thank You

Hazel Henderson

Janine Benyus

Strategies for Deals and Relationships with Outside Investors, Funders and Banks

derived from Ethical Markets Media research and publications

• Full transparency, disclosure to all prospective funders simultaneously.

• Observance of all current rules and regulations required under the International Organization of Securities Commissions (IOSCO), the U.S. Securities and Exchange Commission, the Sarbanes-Oxley Act, Dodd-Frank, FINRA, et al.

• Interview, search and vet all prospective funders to identify their ethics, values beyond money, performance in relation to these ethics and values. Seek only funders in full alignment with the company's purpose, long-term goals, mission and values, and protect the initial “angel” investors from dilution.

• Reject funds with short-term financial payback and performance requirements or exit strategies of either acquisition by a larger corporation or an initial public offering on existing stock exchanges.

• Seek more creative funding strategies which keep the company's long-term mission intact and do not compromise integrity of management or its strategies.

• Seek financing from local sources, community banks and credit unions, while checking their mission statements, policies for green, energy, materials efficiency and performance to their own standards, including of fairness and management practices.

• Engage with appropriate crowdfunding groups with highest social and environmental standards and those focused on green biomimicry startups that adhere to the Principles of Ethical Biomimicry Finance™.

• Seek to self-finance from internal, organic growth as the best option and keep external borrowing and equity to a minimum.