Environmental Finance Conference Part 2: The Missing Links

This is Part 2 in our coverage of Environmental Finance’s 2011 Impact Investing Conference in London.

The reason why the term “social enterprise” sometimes shakes me with delight is because I consistently find myself struggling to survive in a world that doesn’t meet my standards…I don’t mean that in the way that my bedsheets just aren’t satin enough, but rather, I don’t belong to any extreme. I don’t see progress being made by those who abhor all forms of government, regulation, and taxation, yet I don’t see anything that looks remotely like dialogue or concern by those with broad power and deep pockets either. Neither party seems to make any sense.

“Many people recognize that capitalism is the most efficient way to run the economy, but it doesn’t take into account the environmental and social consequences,” Michele Giddens of Bridges Ventures stated in the midst of our “what is impact investment?” debate, but I could already hear the other side – even if they weren’t in the room:

How can it be recognized as the most efficient way to run the economy if there are environmental and social consequences? It appears we need some clarity on the definition of “efficient” as well.

Dictionary.com says:”performing or functioning in the best possible manner with the least waste of time and effort; having and using requisite knowledge, skill, and industry; competent; capable.” “Functioning in the best possible manner” leaves ample room for interpretation. Is it really possible to modify and improve the capitalist agenda or will it always remain to some as “inherently evil”?

One demand was clear:  If we’re really going to make this new system of social good function well, there is an immediate need for a 3rd party standard and adequate regulations. There are already a lot of financial advisors claiming to “specialize” in impact investments when they really have no way of measuring or proving that the investments they promote are, in fact, “impactful.” Perhaps what we need is what the LEED certification is for sustainability or the USDA-approved label is for organic farming. Something credible… but what would that look like and would people buy into it? Or will social-wash become the new green-wash?

It’s hard to say, but I will tell you the two most dubious aspects of my conference experience. Firstly – although adequately advertised as a conference geared toward financial advisors, foundation directors, and private investors – there were very few small-scale social entrepreneurs in the crowd. How can we have a valuable conversation without the very people we are trying to help?

At one point, someone even asked the “what about the poor farmers in Africa?” question and the response was lackadaisical at best. From a few exchanges, I got the impression that foundations and private investors are neither responsible nor feel the need to show extended interest in the actual people they are helping. Only the social enterprises, microfinance organizations, and/or NGOs who receive investor money are obliged to establish actual relationships. This kind of apathy or disconnect doesn’t make a lot of sense for people who present themselves as champions of social good. It reeks of creating an image instead of embodying an ideal.

I saw this bizarre mentality gap again when we took a break for lunch. As the caterers buzzed around us and diligently did their job, no one gave much notice. We were all in our prime time “networking” period, getting to know our fellow colleagues in the field. When given the option to put their plates near kitchen or leave them wherever they felt like, conference attendees chose the latter. Having worked as a caterer many years myself, this was really disheartening. I didn’t have the courage to shame the whole room for a lack of table manners, but I at least delivered my plate to a caterer.

His reaction nearly broke my heart.

“What?” he scoffed. “Is there something wrong with your food?” I balked at the person he expected me to be.

“No, no,” I said, offering up my plate. “I just didn’t feel comfortable leaving my plate just anywhere. It’s a bit rude. I used to be a caterer myself, so I know what it’s like. You guys are doing a great job.”

He scrutinized me for a moment and then finally let out a tiny smile. “Well, thank you very much…I do believe you just made my day.”

Now I know I have my mom to thank for those manners, but I find it hard to believe that everyone else in that room didn’t have moms who once told them the same thing. How can we all sit around the table and talk about changing the world for the better, taking care of society, etc., etc.,  if we can’t even properly appreciate the ones who are serving us our coffee breaks? Many of you may think it’s a petty thing to cry about, but I am a journalist and a teacher – I study people’s characters for a living. For me, there was nothing more telling that was said that day than a scattering of plates left in the lobby. Those details convey more about you and your intentions than anything you present at the podium.

As the day ended, I left the conference feeling guardedly optimistic. Optimistic because I want to believe that social enterprise and impact investments into these organizations could be the middle ground we’re looking for between the extreme capitalists and the extreme hippies. Guarded because I am, perhaps, one of those people in the middle that this movement has to work so hard to convince. Having done my fair share of Third World travelling, I don’t have a lot of faith in anything that remotely resembles capitalism, but I don’t feel I can criticize when I have no secondary model of my own to propose.

That’s why we should be so grateful for the people up at the podium. They have run the gauntlet again and again trying to find new solutions for our broken economy. They have tried and failed, tried and failed and learned, and now fiercely believe they have found the future. I was thoroughly impressed by their zeal and dedication. Conferences like Environmental Finance’s Impact Investing and SOCAP provide a much-needed way to hear and see the tangible results of this growing movement. The next time a conference appears on the horizon, I encourage more average citizens to sign up. You don’t need to be a specialist in anything to attend, listen, and witness the beautiful process of change and progress.

Lastly, even though not everyone cleared their plates, I was happy to see as I left the building that Environmental Finance had remembered a different, but equally important day-to-day detail…