Dr Richard Mattison

11 Nov 2011

Assessing investment risk across the value chain

Changing business models

“Rising resource prices, fuelled by population growth, climate change and growing prosperity, is perhaps the most important economic event since the Industrial Revolution”Jeremy GranthamCo-founder of GMO (US$150billion investment fund)

Some observations:

•One third of the world population living in conditions of severe water shortage by 2025

•Higher food prices

• Increasing costs of raw materials and energy

• Population growth and shifts in consumer demands will further exacerbate these effects

The future

How does this affect economies?

Market conditions

“29% of profit warnings by companies in 2011 were as a result of rising input costs” DELOITTE

Assessing risk: water

There will be ‘winners’

Case study: PUMA

WORLD’S FIRST ENVIRONMENTAL PROFIT & LOSS ACCOUNT

Case study: PUMA

Managing risk in practice

“CalSTRS to be first to use breakthrough online solution providing financial professionals with performance data based on major environmental criteria.”

Managing risk in practice