Ethical Investment An example Climate Caf Series Belmont

Ethical Investment An example Climate Café Series Belmont Cinema 05 February 2019

Contents Who am I Ethical investment Aberdeen Community Energy How to

Who am I Sinclair Laing Environmentalist Community development ACE – Chair DVC – Trustee ACC – Environmental Policy

Who I am not! I am not a financial advisor! The value of an investment may go down as well as up Only invest what you can afford to lose

What is investment A physical or other (financial) asset acquired with the goal of generating wealth Assumes immediate economic output (business) or deferred growth in value (other asset) Money in = money out + profit

Ethical investment Not wealth for wealth’s sake Generates non-financial benefits Aligns to a set of values Lots of frameworks / approaches

Why do it Investor: Support what’s important (to you) Less anonymous - ‘closer’ relationship Wealth generation Investee: Funds to deliver ‘good’ business Can be easier to access (depends) Relationships with stakeholders

Why did I do it Donside Hydro Papermill to Sustainable Village 100 k. W run-of-river micro hydro 520, 000 k. Wh. yr = 130 homes £ 1, 250, 00 end to end Commissioned 21 st Sept 2016 Multiple benefits: Environment, e. g. reduce CO 2 Financial, e. g. community fund Social, e. g. skills & education Much more besides…

How I did it Like any business… Is there merit in this Do I have the will Does it stack up financially How do I go about it Support: 3 rd sector support agencies Legal - structures Financial - models Marketing Skilled / dedicated team

Who are ACE Legal entity born of DVC to build, own & operate DH Separates financial / legal risk Defines operational roles Community Benefit Society Registered & Regulated by FCA Board of Directors (voluntary) Members = investors Rules

Marketing Selling an story / values £ 20 K for Marketing Branding Key messages Website Facebook Twitter Press Materials, Offer Docs

Finances £ 1, 250, 000 Project cost Development - CARES - £ 250, 000 Capital No larger commercial loans Underwriting & Invest HED Share Offer - £ 500, 000 @ 7% Bond Offer - £ 600, 000 @ 4% Income FITS – 20 p. k. Wh - £ 100, 000 Sales – 5 p. k. Wh - £ 30, 000 Expenditure Operations - £ 15, 000 Shares – Cap & interest Bonds – Cap & interest Community fund - TBC

Contact us Aberdeen Community Energy Web: acenergy. org. uk Email: info@acenergy. org. uk Facebook: ACEnergy 2016 Twitter: @ACEnergy 2016 Linked. In: Aberdeen Community Energy is the trading name for Donside Community Hydro Limited, a Community Benefit Society registered with the Financial Conduct Authority: #7251

Legal / Partnership Structure