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Former MP Peter Ainsworth: I worked in the City, but I’m pleased I didn’t stay

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Peter Ainsworth looks back on his time working in the investment world with fond nostalgia. But even in 1992 – when he left the industry to become a Conservative MP and later the shadow environment secretary – he could see it was turning into something completely different.

I don’t know what London’s coming to”, wrote Sir Noël Coward in his 1931 book, Collected Sketches and Lyrics, “The higher the buildings the lower the morals.” It’s almost as if the acclaimed playwright had premonitions of the future, for as the City of London – the financial heart of the capital – has grown both upwards and outwards over the years, its very purpose – to raise money for people who want to do good things – has weakened.

The events of 1986, when the City was deregulated – an event known as the big bang – are often credited with really setting this ball rolling.

Led by Margaret Thatcher’s Conservative government, the deregulation saw the London Stock Exchange ditch its trading floors in favour of electronic alternatives. This allowed in international firms – the likes of Goldman Sachs, Morgan Stanley and JP Morgan – as the City embarked on a new era of increased competition.

David Buik, who in 1986 was managing director of Babcock & Brown Money Markets, told the BBC in 2006, “At the start of big bang there were no less than 21 gilt-edged market makers – ridiculous, as there was nothing like enough business to go round.”

Working in the City around the time of this major upheaval was Peter Ainsworth, who spent over a decade at Laing & Cruickshank Investment Management (later acquired by UBS) and then SG Warburg Securities (also later acquired by UBS). The former Tory MP, who is now chairman of the Big Lottery Fund, looks back fondly at his previous career, but could see the City of London was beginning to lose its “moral purpose” when he left the industry to stand for parliament in 1992.

Americans companies began buying out British finance firms – merchant banks, stockbroking firms and so on, which are old-fashioned terms now – and then pulverising them”, he says from his office at the Big Lottery Fund’s London headquarters.

People started spending more time negotiating fees than they did thinking about what they could do for their clients. It was just beginning to go wrong. I could just sense it was going to go wrong. I’m quite pleased I didn’t stay.”

A few days before Ainsworth spoke to Blue & Green Tomorrow, Bank of England governor Mark Carney told BBC Radio 4’s Today programme that banks have to change their culture in order to play a more socially and economically useful role.

Thank God somebody said it”, says Ainsworth. “The City doesn’t exist in a moral vacuum; it’s part of everything we do. Its purpose is to make good stuff happen. It’s a service industry that forgot the word ‘service’.”

Despite enjoying his time working in the City, Ainsworth decided to move his career in another direction. After bumping into a school friend of his wife who said he was standing for Wandsworth council, he decided to do the same – and won a seat.

I ended up as a local councillor and realised that politics is not about having opinions or being interviewed on that poor, abused bit of ground outside the Houses of Parliament; actually, it’s a public service and it’s about getting things done for people.

I really enjoyed the way that being elected to a council enabled me to make changes to people’s lives – there’s no way to say that without sounding pious. Then I was working in the City and thought that I could either stick to my workstation for the rest of my life or have a crack at becoming an MP.”

He had a crack and to his “amazement” got selected for East Surrey – a safe seat for the Tories, previously occupied by Sir Geoffrey Howe (now Baron Howe of Aberavon). He openly admits that his transition from investment to politics was not pre-planned, and while some of his former colleagues may have been reading Hansard at 11, he had not harboured a massive political ambition from an early age.

Instead, it was the ability to help enact tangible changes in people’s lives that drew him in to the profession.

Ainsworth spent five years learning the political ropes as a backbencher, before becoming shadow culture secretary in 1997 – a role he held for four years. He moved to the Department for Environment, Food and Rural Affairs (Defra) in 2001, becoming shadow secretary of state, before stepping back from frontline politics a year later for personal reasons.

He returned in 2003 to chair the environmental audit committee, where he believes he made his “biggest political impact”, before being given the environment brief again in Tory leader David Cameron’s new-look shadow cabinet.

The green agenda was picked out as a high priority during Cameron’s early leadership of the Conservatives, with the party running with its famous “vote blue, go green” campaign in the now-prime minister’s formative years at the helm. It was around this time that the much-discussed photo of Cameron “hugging” a husky came to light.

However, while the environment may not be as important as issue for the Tory party in 2013 as it was six years ago, many commentators are right in thinking conservation and Conservatism are natural bedfellows. Writing in the London Evening Standard in March, shortly after George Osborne had revealed the budget for the coming year, Independent editor Amol Rajan described the coalition government’s fatigue on all things green as “a betrayal of Conservatism itself”.

For Ainsworth – who was replaced as shadow environment secretary by Nick Herbert in the January 2009 reshuffle – the environment remains a core tenet of what it means to be a Conservative.

I think [the Conservative party] needs to be reminded of the fact that one of the key things about Conservatism is that it’s about respecting the past, it’s about a sense of stewardship over the present and it’s about a sense of responsibility to children and the unborn.

I’m going right back to Edmund Burke here, who was one of the founding fathers of Conservative thought, and also whose ideas about the little platoons feed straight into Schumacher’s Small is Beautiful. It strikes me that this is incredibly Conservative territory.

Conservatism is about conserving, protecting, looking after, nurturing and being responsible. It’s utterly and deeply embedded in my sense of what Conservatism is about. You only have to remind people of that and they get it.”

A key point for Ainsworth in any environment and energy debate is that this is not a religion – even though, he says, many people treat it as though it is. Like climate change (which Ainsworth adds is “not there to be believed in or not”), it’s about rationality, evidence and decisions based on the science.

Even if you don’t agree with the world’s leading scientists about what is happening to the atmosphere, why do we want to be dependent on imports of fossil fuels from unstable countries?” he asks.

Isn’t it better to use and invest in the technology which does already exist and will enable us to generate cheaper, cleaner and less polluting forms of energy?

The present government, to its credit, has tried a bit more than past governments. But the thing that concerns me is that it hasn’t succeeded in creating a stable, secure, long-term structure which will give investors confidence.”

Since stepping down at the 2010 general election, any thoughts of him missing his parliamentary career have been put on the backburner while he embarks on his latest role as chairman of the Big Lottery Fund. He continues to be passionate about the environment, and has helped the organisation invest £350m in explicitly green projects since 2007.

Our mission is to improve the lives of people most in need. And the way to do that is to give them ownership, and ask them how they think they can solve problems for themselves”, he says.

When you do that, very often the stuff they come up with is to do with the quality of the natural or built environment. The places where they live.

Things like knocking down that horrible wall, getting rid of the graffiti, looking after the park better. It’s all to do with the stuff that surrounds us every day. It’s hardly surprising that the environment matters to people. It’s where we live.”

Further reading:

Coalition’s green fatigue is a ‘betrayal of conservatism itself’

Are capitalism and conservation incompatible?

There is a disconnect between investment and the real world

We need investment to return to its ‘patient evolutionary path’

The people’s manifesto

Economy

New Zealand to Switch to Fully Renewable Energy by 2035

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renewable energy policy
Shutterstock Licensed Photo - By Eviart / https://www.shutterstock.com/g/adrian825

New Zealand’s prime minister-elect Jacinda Ardern is already taking steps towards reducing the country’s carbon footprint. She signed a coalition deal with NZ First in October, aiming to generate 100% of the country’s energy from renewable sources by 2035.

New Zealand is already one of the greenest countries in the world, sourcing over 80% of its energy for its 4.7 million people from renewable resources like hydroelectric, geothermal and wind. The majority of its electricity comes from hydro-power, which generated 60% of the country’s energy in 2016. Last winter, renewable generation peaked at 93%.

Now, Ardern is taking on the challenge of eliminating New Zealand’s remaining use of fossil fuels. One of the biggest obstacles will be filling in the gap left by hydropower sources during dry conditions. When lake levels drop, the country relies on gas and coal to provide energy. Eliminating fossil fuels will require finding an alternative source to avoid spikes in energy costs during droughts.

Business NZ’s executive director John Carnegie told Bloomberg he believes Ardern needs to balance her goals with affordability, stating, “It’s completely appropriate to have a focus on reducing carbon emissions, but there needs to be an open and transparent public conversation about the policies and how they are delivered.”

The coalition deal outlined a few steps towards achieving this, including investing more in solar, which currently only provides 0.1% of the country’s energy. Ardern’s plans also include switching the electricity grid to renewable energy, investing more funds into rail transport, and switching all government vehicles to green fuel within a decade.

Zero net emissions by 2050

Beyond powering the country’s electricity grid with 100% green energy, Ardern also wants to reach zero net emissions by 2050. This ambitious goal is very much in line with her focus on climate change throughout the course of her campaign. Environmental issues were one of her top priorities from the start, which increased her appeal with young voters and helped her become one of the youngest world leaders at only 37.

Reaching zero net emissions would require overcoming challenging issues like eliminating fossil fuels in vehicles. Ardern hasn’t outlined a plan for reaching this goal, but has suggested creating an independent commission to aid in the transition to a lower carbon economy.

She also set a goal of doubling the number of trees the country plants per year to 100 million, a goal she says is “absolutely achievable” using land that is marginal for farming animals.

Greenpeace New Zealand climate and energy campaigner Amanda Larsson believes that phasing out fossil fuels should be a priority for the new prime minister. She says that in order to reach zero net emissions, Ardern “must prioritize closing down coal, putting a moratorium on new fossil fuel plants, building more wind infrastructure, and opening the playing field for household and community solar.”

A worldwide shift to renewable energy

Addressing climate change is becoming more of a priority around the world and many governments are assessing how they can reduce their reliance on fossil fuels and switch to environmentally-friendly energy sources. Sustainable energy is becoming an increasingly profitable industry, giving companies more of an incentive to invest.

Ardern isn’t alone in her climate concerns, as other prominent world leaders like Justin Trudeau and Emmanuel Macron have made renewable energy a focus of their campaigns. She isn’t the first to set ambitious goals, either. Sweden and Norway share New Zealand’s goal of net zero emissions by 2045 and 2030, respectively.

Scotland already sources more than half of its electricity from renewable sources and aims to fully transition by 2020, while France announced plans in September to stop fossil fuel production by 2040. This would make it the first country to do so, and the first to end the sale of gasoline and diesel vehicles.

Many parts of the world still rely heavily on coal, but if these countries are successful in phasing out fossil fuels and transitioning to renewable resources, it could serve as a turning point. As other world leaders see that switching to sustainable energy is possible – and profitable – it could be the start of a worldwide shift towards environmentally-friendly energy.

Sources: https://www.bloomberg.com/news/articles/2017-11-06/green-dream-risks-energy-security-as-kiwis-aim-for-zero-carbon

https://www.reuters.com/article/us-france-hydrocarbons/france-plans-to-end-oil-and-gas-production-by-2040-idUSKCN1BH1AQ

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Economy

How Going Green Can Save A Company Money

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going green can save company money
Shutterstock Licensed Photot - By GOLFX

What is going green?

Going green means to live life in a way that is environmentally friendly for an entire population. It is the conservation of energy, water, and air. Going green means using products and resources that will not contaminate or pollute the air. It means being educated and well informed about the surroundings, and how to best protect them. It means recycling products that may not be biodegradable. Companies, as well as people, that adhere to going green can help to ensure a safer life for humanity.

The first step in going green

There are actually no step by step instructions for going green. The only requirement needed is making the decision to become environmentally conscious. It takes a caring attitude, and a willingness to make the change. It has been found that companies have improved their profit margins by going green. They have saved money on many of the frivolous things they they thought were a necessity. Besides saving money, companies are operating more efficiently than before going green. Companies have become aware of their ecological responsibility by pursuing the knowledge needed to make decisions that would change lifestyles and help sustain the earth’s natural resources for present and future generations.

Making needed changes within the company

After making the decision to go green, there are several things that can be changed in the workplace. A good place to start would be conserving energy used by electrical appliances. First, turning off the computer will save over the long run. Just letting it sleep still uses energy overnight. Turn off all other appliances like coffee maker, or anything that plugs in. Pull the socket from the outlet to stop unnecessary energy loss. Appliances continue to use electricity although they are switched off, and not unplugged. Get in the habit of turning off the lights whenever you leave a room. Change to fluorescent light bulbs, and lighting throughout the building. Have any leaks sealed on the premises to avoid the escape of heat or air.

Reducing the common paper waste

paper waste

Shutterstock Licensed Photo – By Yury Zap

Modern technologies and state of the art equipment, and tools have almost eliminated the use of paper in the office. Instead of sending out newsletters, brochures, written memos and reminders, you can now do all of these and more by technology while saving on the use of paper. Send out digital documents and emails to communicate with staff and other employees. By using this virtual bookkeeping technique, you will save a bundle on paper. When it is necessary to use paper for printing purposes or other services, choose the already recycled paper. It is smartly labeled and easy to find in any office supply store. It is called the Post Consumer Waste paper, or PCW paper. This will show that your company is dedicated to the preservation of natural resources. By using PCW paper, everyone helps to save the trees which provides and emits many important nutrients into the atmosphere.

Make money by spreading the word

Companies realize that consumers like to buy, or invest in whatever the latest trend may be. They also cater to companies that are doing great things for the quality of life of all people. People want to know that the companies that they cater to are doing their part for the environment and ecology. By going green, you can tell consumers of your experiences with helping them and communities be eco-friendly. This is a sound public relations technique to bring revenue to your brand. Boost the impact that your company makes on the environment. Go green, save and make money while essentially preserving what is normally taken for granted. The benefits of having a green company are enormous for consumers as well as the companies that engage in the process.

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