Editor’s Interview with Robert Rubinstein Founder of TBLI Group

When I started Triple Bottom Line Investing (TBLI) nearly 20 years ago, I wanted TBLI Group’s mission to create an inclusive values based economy. The Triple bottom line approach. All investments should provide a financial, social and environmental return, and not only a financial return. Since 1996, the Triple Bottom Line Group (TBLI) has been building the ecosystem for the Impact Investing and Environmental, Social and Corporate Governance (ESG) community, providing advisory, educational services and networking events. One of the star products is the TBLI CONFERENCE, which is the longest-running global forum bringing together investors, asset managers and thought leaders in sustainable finance.

Reflecting on the past 20 years, I feel proud of the impact that TBLI has had on integrating sustainability in the way the financial sector looks at investment. It is nearly impossible to say how much money, jobs, opportunities has been created directly and indirectly but it is massive.

Robert, you have more than 20 years experience in living your mission: Why have you created TBLI and why are you sticking to the idea of Triple Bottom Line investment?

I saw the necessity to engage the corporate sector in order to create an inclusive value based economy, which is my vision. I then asked myself. How do you create an engagement policy with the corporate sector? Corporates respond to pain, so I began to influence their pain point. The main pain points for corporates are Finance, Personal and Reputation and you have to press those pain points in order to engage them for an inclusive value based economy. So I chose where I can most effectively influence their pain points, and have been doing that for the past 20 years with the financial sector. In the 1990s, 20 years ago I considered that I would have to connect with the top 100 asset owners and managers word-wide, as they had direct or indirect control over 25% of the assets, globally.

“Strategy, plan, goal: So I decided to convince only 100 CEO’s or CIO’s, controlling around 25% of assets to bring about a change toward a value based economy. This seemed more doable for a small company like ours.

I realised that trying to influence all MBA students globally (personnel) would be resource prohibitive (take far too long). Reputation would be even more challenging.”

  • So how did you go about the mission?

I stated with capacity building. I have used TBLI conference as a tool to engage and bring about change. So the conference was the means to build an engagement strategy. And I was clear about one thing: you have to do it over and over and over again in a farming approach. Investors and investment bankers are hunters and some are predators, building an inclusive value based economy is a farming exercise, not a hunting exercise. The financial sector has a short term focus with incentives reinforcing that short term behaviour. If asset managers hit or surpass their benchmark, they are rewarded, and punished (fired) if they don’t. Quite simple. Sustainable investment is more long term in nature (farming) making it challenging for the financial sector (hunters) to embrace.

I saw influencing the TOP 100 in the financial sector as the most effective way for my mission, because power and influence is in the hands of so few people. This was all done with little to no resources. I had no money, I had no staff and I was providing my company with my own seed money. My first conferences were with the Rotterdam School of Management. I signed a contract with them and they made me liable for all losses that such a Triple Bottom Line conference would bring about. We made money with the first conference, so that was a shock for them. A small percentage of the profit for this first event with RSM, went to TBLI. I continued for a while the conferences with the Rotterdam School of Management, until I scaled up and could move to other financial centers, that appealed to mainstream financial players, and get more global in my conferencing approach.

  • So that was a great start already making money out of no resources for a great idea and mission. But how did you scale?

I knew, that I had to scale with institutional investors. My approach is somewhat different from the approach of many sustainable finance conferences. I am doing conferences for the mainstream investors, not the socially responsible investors. TBLI focusses more on the “I am interested in engaging with the “irresponsible” investor and “criminals”, because they have more money, are predictable, open to practical arguments, and most important they have a good sense of humour. I am a excellent quality connector. I know how to connect people that fit professionally and culturally. I was one of the first to “invest” into a first class Customer Relationship Management (CRM) System from the beginning and we have continuously improved it. I looked for the best affordable CRM system and made sure we maintain all the relationships we need for our ecosystem. The CRM helps us a lot in working effectively and maintaining effective relationships, we can track the history of the relationship, we code every relationship and we possess a huge history of data by now. So this was our way to build up social capital and to transform it into a market movement.

  • So is it correct to say, you transformed social capital not only into a market movement, but also into financial capital like a Tesla?

I know people speak much about transforming social capital into financial capital today, but this was not my primary focus. Of course I wanted TBLI to grow and have funds to scale up, but my primary focus was to have the funds to make change happen. And then the financial crisis and all its collateral damage came. It was a body blow to the gut for everyone TBLI’s Conference income dropped by 90%! Until the time we had built an ecosystem that was nurturing the TBLI approach. In spite of the financial challenges, we continued to impact the industry and innovate. Since the crisis, banks and investors spend money on compliance, regulation, Basel II and Basel III and are happy for the remainder to make the CEO look good. Little to nothing was going towards capacity building. Everyone wanted us to continue convening our TBLI events, but weren’t providing the resources.

This challenge actually helped us tremendously, by making us much much stronger. We refocussed, adapted, innovated by working with leading business schools and further refined our message. The financial sector started to realise that ESG and Impact was in their interests, and in particular in the interests of their clients.

The Triple bottom line approach is easy to understand. The challenge is getting the message through to asset owners and decision makers, passed the gate keepers who are more often blocking the door or guarding the mote. This behaviour change and attitude change towards ESG and Impact Investing is happening, big time, in spite of the gate keepers. This is in part due to all the farming TBLI has done.

So how do you position TBLI now following the financial crisis and how can you move on?

TBLI Is Not Conflicted

TBLI is one of the few independent organisations only focusing on our mission integrating sustainability into the financial sector. TBLI is investing every penny into our efforts of building an economy based upon well being; focusing on the financial sector. TBLI does not manage money. This is to avoid any conflict of interests. TBLI is also quite critical of many of the fund managers who claim to have all the answers (“master of the universe”). Look at Warren Buffet advice to his wife: “When I die put your money into an index fund.” Do you think we need all these well paid fund managers, if we can do as well by investment in index funds? Index funds are agnostic to values and inclusion. As I said, capacity building is not something investors or bankers invest in any more. But Wealth Management is something banks are still going for, as this is still going reasonably well for banks and clients money is quite sticky (doesn’t move much). The banks have a major advantage over others as they have access and relationships over a long time with wealth clients. They can engage with them. For traditional banking services (cash management), which is what most clients want in the way of banking services, banks will struggle. Fintech and fintech startups are a major disruptive force in the banking sector. That is why many are investing or buying these companies.

TBLI found, the model for scaling up capacity needs to be adapted post crisis, given the amended circumstances. TBLI is creating a Sustainable Finance forum integrating all of our entire eco-system and tools that we have developed.

TBLI has 20 years of capacity building experience and the largest network of ESG and Impact Investors and thought leaders. Now we will take our whole ecosystem not only TBLI Conference, but also, TBLI Club, TBLI investor salon, TBLI training, TBLI expert meetings, TBLI dinners, and TBLI retreats. Basically, everything we have done over the 20 years to focus in one centre (geographic area) to make it the centre for sustainable finance in the region supported by strong media outreach. This will provide a networking and exchange platform for asset managers, asset owners and financial service providers. Ultimately, creating a significant financial impulse in AUM’s and employment, which is what the financial sector wants. TBLI will be the Consigliere or Rabbi for banks and asset managers in helping them to help themselves.

Growth, Prosperity, and Sustainability

  • What exactly will the Centres for Sustainable Finance be doing?

I have strong connections with the cities of Stockholm and Zug. Switzerland, Sweden and Tokyo are more open to innovation than many other developed cities.

Now TBLI is working on making these cities into Sustainable Development Goals Centers.

I am looking at some places in North America, Latin America, and Africa. TBLI believe sin social inclusion and are partnering with a network of 12 major faiths through the Alliance for Religions and Conservation:

Islam, Christianity, Shintoism, Judaism, Daoism, Confucianism, Buddhism, Hinduism, Bahia, Jainism, Sikkhism, Zoroastrianism. These faiths are creating guidelines on how to manage the faith’s assets (cash, buildings or land) in line with the Sustainable Development Goals (SDGs). That would be one of the deliverables that we would bring this event to the location and ultimately may call the final guidelines after the city that hosts the Sustainable Finance Forum.

It’s a 3 years fully funded programme, with funds coming from various players that present and position themselves with the help of the TBLI world wide network as Centre of Sustainable Finance. These Centres will apply for and provide the funding, whereas we provide the complete TBLI capacity building programme. We are in discussions with Stockholm, Tokyo, Zug, Hong Kong, Singapore, Toronto, Nairobi and Bogota. Switzerland, Sweden and Japan have responded favorably.

These Centers using our ecosystem and our tailor made Capacity Building blocks will thrive and allow rapid growth of money flows into ESG and Impact Investing.

TBLI has successfully created a multitude of tools to raise awareness of the financial sector, with the TBLI Conference as a star. We will leverage on our ecosystem for the next step.

  • What will be the impact?

The idea is to take one location, and very intensively, do this on an on-going basis and ultimately this will create the products and services, which will generate lots of jobs and assets under management and money flows. That is different than organising one conference. People come and they exchange business cards but there is no follow up. No one is managing that process. That is the critical part. Creating or partnering with a non-profit to carry out the Capacity Building will provide the missing part to scale rapidly. I am quite far with two locations and hopefully this will allow TBLI to scale and do this as a non-profit initiative. The business that comes out of that will be a great deal of advisory work.

  • So you are going to work more with cities and asset managers, so players that want to position themselves in sustainable finance?

Yes, our partners are associations or non-profit foundations and I proposed that TBLI can do the deliverables, and they manage the organisation locally, and apply for the funding, with assistance from TBLI. The timing is right as there is significant interest in ESG and Impact Investing, and interest to grow the financial sector of a particular city. With our vast network and experience, TBLI is able to bring a team together in any country. It is not that hard for TBLI, due to our vast experience and reputation in doing this type of work. The funders (city, stock exchanges, financial associations, asset managers, law firms, etc.) have what TBLI needs (funding) and TBLI have what they need (deliverables).

At the moment everybody is worrying about US elections, BREXIT etc. but I feel the timing is ideal. It is the right time. Intermediaries have been slowing the process of asset allocations towards ESG and Impact as well as often not informing or educating their clients, until now. They feel that the best business model is to keep the client ignorant and not allow ESG and Impact Investing product to get through to their asset owner clients. They feel they have something to lose by not pushing ESG and Impact, but it is the complete opposite. Those that don’t embrace ESG and Impact Investing, will lose. The asset owners are the ones to engage, yet this is far more difficult to negotiate access to them rather than to the intermediaries.

  • So the core question is “How do you get access to asset owners.?”

The financial sector is not that seriously committed to the topic as they claim to be. TBLI is changing that.

  • So when you talk about ecosystems what do you mean by that?

  • What is for you the difference between an eco-system and a forum?

A forum is regional or local and is often one event, an ecosystem can be local or global and entails everything related, such as networks, events, partnerships, sponsors, clients, IP (intellectual property), technology infrastructure, etc. One thing is absolutely essential. It has to speak one language. “Don’t scream in French to someone who speaks Chinese. They still won’t understand you if you shout.” What I am doing is to take the attitude and language of farming and translate it to hunters.(financial sector). As TBLI is independent, it does not need to be politically correct. We can confront people when they say stupid things and this is what we do. As we are not part of a political organisation, we can cross connect people. In addition, we are not an asset manager ourselves, so can avoid conflict of interests and focus entirely on clients and society long term interests, like a true Consigliere or Rabbi.

  • So what is your intrinsic motivation for getting up each and every day and continuing with TBLI?

“My wife’s snoring”.

Just kidding.

I like what I am doing. When I have time to farm, rather than chasing, things go smoothly and easily with little effort. We are the Consigliere/Rabbi of Financial Sector, creating a level playing field and mobilising capital for sustainable investment.

Ultimately, an economy based upon well being fuelled by a financial sector that wants a financial, social and environmental roi.

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Overview of TBLI Group Work Over 19 Years

Since its inception over 19 years ago. TBLI GROUP has been an educator and curator. In addition, we have provided a network to institutionalise sustainable investing, that has been contributed directly and indirectly to the growth of Sustainable Investment (liquid and illiquid).

Professional global network of 30,000+

  • TBLI CONFERENCE™ gathers financial professionals for dialogue and debate on all aspects of ESG and impact investment

    • 31 Events over 19 years on three continents

    • Attendees represent ~$50 trillion US AUM

  • TBLI CONSULTING™ advises companies and individuals who wish to institutionalise sustainability

  • TBLI CLUB™ is a regional, initiative in Benelux and France, offering quarterly learning and networking events

Achievements

It is hard to keep track of all the people and companies that have gotten benefit through direct introductions by TBLI to a strategic partner or investor, here are some memorable moments that come to mind. The carbon disclosure project got started through quality connections to institutional investors like Allianz and Munichre, when CDP had no signatories and was just starting as an idea. TBLI connected a us micro finance fund manager to Daiwa that led to 250 million dollar mandate. RENGO (Japanese Trade Union) announcing a 450 billion euros commitment to ESG at TBLI Japan. APG asked TBLI to train staff, managing 30 billion euros, about why ESG is important to a pension fund. This training program led to APG committing to integrate ESG in all their assets.

Pre qualifying connections between two or more parties has always been the hallmark of TBLI. People want to meet people that are Kosher. We perform that as a kind of “pre-qualified linked in and Rabbi”, all rolled up in one.

Testimonials

“As CDP was first developing in 2001, Robert Rubinstein and TBLI stood by us, attending key meetings with key investors such as Allianz. We ended up representing Allianz in 2002, helping CDP start with over $1 trillion. Robert and TBLI were pivotal to getting CDP off the ground and we will always be in their debt.”

Paul Dickinson

Executive Chairman

Carbon Disclosure Project

Zayed Prize Winner 2012

“TBLI [is]—first and foremost—an investment conference. There are many other venues for advancing pure social and environmental activism. TBLI is different because your time is spent on investment fundamentals, new research on maximizing alpha, and meeting with investors who have similar levels of fiduciary responsibilities to manage and/or guide large investment portfolios….TBLI creates a safe-place for real financial professionals to ask questions and rethink long-held ideas of managing investments

You (Robert Rubinstein) have led great changes in this world. While climate and social equity are practically mainstream now, you were a leader when there were few in the business world who took these issues seriously. I was at COP21, in part to assist my Chairperson, who was a delegate, and to also attend a few things on my own. I thought many times about the people I had met at TBLI and the influence you and it have made in my understanding of the world.

Robert, YOU, personally, made COP 21 and the agreement possible. You are like the guy who breaks the path in the snow after a big storm. It is hard to be an early adapter.”

Toni Symonds (Chief Consultant, Assembly Committee on Jobs Economic Development and the Economy California State Legislature)

“TBLI Conference stands out from other conferences in the standard of value I received during my attendance. The topics covered, quality of contacts made, deals executed and community generated are noticeably better than other conferences I’ve attended. Thank you Mr. Rubinstein for your vision and execution”

Ibrahim AlHusseini (The Husseini Group LLC)