As talks about the next already nearing financial crisis are going around the world Picking Alpha is searching for answers and solutions. We are taking a deep dive into a Circular Economy that on one hand is as old as the humanity and on the other hand is a new economic term that our fast growing society is slowly starting to accept. Picking Alpha is speaking to Janez Potočnik, Co-chair, UNEP International Resource Panel. Prior to this position Janez Potočnik was the Commissioner for Science and Research and then as the Commissioner for the Environment in European Union. During his term as the Commissioner for the Environment, he launched and pioneered the implementation of Circular Economy and sustainability policies.
Just about a year and a half ago in addition to all his work Janez Potočnik has become a partner in an Advisory and Investment Company Systemiq –“ a daring idea”, as he describes it himself, of investing in the ideas in which we believe and preach. Systemiq wants to be engaged everywhere where there is a system change, where we can change the world for better, change in a sustainable way. “What is the point in investment that creates profit and misery? – asks Potočnik.
Below we listed 5 questions of our interview with Janez Potočnik answers to which can design a road map towards profitable but non-damaging economic approaches and methods:
- You are saying that Financial Capital is overvalued, Human Capital is Undervalued and Natural Capital is not valued. Can you think of existing business models that at least balance this inequality?
- Circular Economy transit requires long term investments and lower returns. With the current threat of robotization (and fear of it in many industries) and fear upcoming job losses, do you think anyone would instruct their investment brokers to lower profit returns and not go for maximum short term profit?
- Is there a country that has been able to achieve balance with its policies and governance?
- With the society trying to balance the Financial / Human / Nature inequality, do you think that Financial Industry has to implement change management measures? What measures do you think can come immediately and what at the next stage?
- Very few investment companies would sacrifice Alpha in investments, or even small share of the profits to invest in circular economy technologies , what would be your arguments to convince to invest in circular economy?