It's been well received by my wife and mother. So, what other proof do you need? As a smart man, my answer is, "None." :)
Aside from the shock factor, the point of the book is to encourage readers to be more conscious of how they make use of...uh...their "Holy fucking trinity: Time, energy, and money."
That is, if you're not careful, other people's priorities or expectations soon become yours. And then you're less happy and off-track when it comes to meeting your personal and business goals.
So, if you're looking for a good laugh (I mean, serious LOLing), and if you want a reminder that your needs and desires should come first sometimes (remember who gets the oxygen mask in an airplane when traveling with a child), then it's worth a read.
As a teaser, here are some chapter topics:
You need to stop giving a fuck about what other people think
Threat level red: The hardest fucks to stop giving
Old fucks, new fucks, borrowed fucks, blue fucks
Fuck the haters
If your ears are bleeding, then...Oops.
But there is a lot of value in helping us Entrepreneurs for Impact prioritize our precious resources — time, money, and energy — to increase our impact and profits.
Amount of capital: Global investments in wind and solar projects is expected to range "from $165 billion to $190 billion per year between now and 2035."
Unit cost variation: Capital costs vary widely among geography and type of renewable energy. For example, solar projects can be developed for "$0.40 per watt in Portugal or Spain, versus $1.50 per watt in Japan. The global average is approximately $1.00 per watt for onshore wind and solar and $2.00 per watt for offshore wind."
Costs of debt financing: Onshore wind or large-scale solar PV projects can "currently be financed with 75% to 85% of leverage at 100-130 basis points over LIBOR (for investments in BBB credit-rated countries). This is very close to the lending rate a large bank would provide for a highway or an airport."
Source of investment: Between 2020 and 2035, here is the estimated percentage of capital coming from each source: Utilities 25%, Private capital funds 23%, Public companies 21%, Smaller developers 18%, Oil and gas 8%, and Pension funds 4%. To get the actual numbers, you have to purchase the report. :)
Risk management strategies: Much of the revenue in these projects has been via Power Purchase Agreements (PPAs). But much of the market, especially in wind, is moving to variable revenue models with greater dependence on merchant markets. This article suggests that "over the next five to 10 years, new hedging instruments are likely to become more robust and liquid, allowing asset owners to continue to deploy capital in a flexible way."
So, as we watch the US pull out of the Paris Climate Agreement, you might have desire to go cry in a pillow (or drop an anvil on a large stack of glass tables).
But, there is hope. Renewable energy project finance is now mainstream. Billions of dollars will continue to flow into the sector.
The trick is this: Who will finance this growth? What do they care about? And how do we as Entrepreneurs for Impact find the right fit with the right source of capital?
This article shines a little light on answers to these questions. Now we just need to amp up this market intelligence with (figuratively) a million deer lights shined in this direction.
(And, yes, it's deer hunting season in NorthCarolina right now. Based on a successful and cold outing last weekend, my buddies tell me that it's venison time.)
While attending a CEO leadership summit with Vistage last week, a keynote from ITR Economics predicted the US would experience another Great Depression in 2030.
[Insert anear-piercing record screech, and tires squealing on a lonely desert highway.]
If this had come from some random, no-name blogger on the internet, then I wouldn't be surprised.
But instead it comes from a global economic forecasting firm with a 94.7% accuracy rating.
While that's impressive, that percentage is based on predictions that are "12 months out," not "10 years out," so don't go prepare your Armageddon bunker in Idaho just yet.
So why do they think this depression might occur:
Changing US demographics
The costs of health care
US government entitlement programs
To hear more, and how you and your kids can prepare for this coming economic collapse, here's an ITR Economics interview you might like. Oh joy!
So, what's the purpose of this shocking or incredulous post?
Always question the source of data brought to you by your team.
Do scenario planning as you refine strategy for your company's future: (1) Downside, (2) Base case, and (3) Upside.
Sound business principles today will likely prepare you for scary scenarios in the future: Save more money. Use less debt. Diversify your income sources. Be prepared to grow your business and make new investments when the rest of the market is running away.
As Warren Buffet says, "Be fearful when others are greedy and greedy when others are fearful."
"Companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians.
Companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians.
In the United States, there is a linear relationship between racial and ethnic diversity and better financial performance: for every 10% increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes (EBIT) rise 0.8%.
Racial and ethnic diversity has a stronger impact on financial performance in the United States than gender diversity, perhaps because earlier efforts to increase women’s representation in the top levels of business have already yielded positive results.
The unequal performance of companies in the same industry and the same country implies that diversity is a competitive differentiator shifting market share toward more diverse companies."
From McKinsey & Company (#2): (link) - more pictures and graphs here
"Companies in the top 25th percentile for gender diversity on their executive teams were 21% more likely to experience above-average profits.
We found a positive correlation between gender diversity on executive teams and both our measures of financial performance: top-quartile companies on executive-level gender diversity worldwide had a 21% likelihood of outperforming their fourth-quartile industry peers on EBIT margin, and they also had a 27% likelihood of outperforming fourth-quartile peers on longer-term value creation, as measured using an economic-profit (EP) margin.
Companies in the fourth quartile on both gender and ethnic diversity are more likely to underperform their industry peers on profitability: 29% in our 2017 data set."
"Companies that reported above-average diversity on their management teams also reported innovation revenue that was 19% higher than that of companies with below-average leadership diversity — 45% of total revenue versus just 26%.
These organizations also reported better overall financial performance: EBIT margins that were 9% higher than those of companies with below-average diversity on their management teams."
A passive approach [to increasing diversity] is guaranteed to fail. (In fact, even active efforts don’t always succeed. BCG’s recent research on gender diversity shows that 91% of companies have a program in place, yet only 27% of women say they have actually benefited from it."
So, now your left brain can finally support what your right brain (or heart, gasp!) has been telling you to do for years.
New focus for impacts: Most climate change risk to date has focused on financial implications. This report, however, focuses on physical risk to buildings and infrastructure, essential components of any city and most businesses.
Geographic precision for risk estimation: Physical risks have historically been hard to measure, but "advances in econometric research, data processing, and scalable cloud computing make a rigorous, evidence-based, asset-level accounting of physical climate risk possible." So we're not talk about physical risks for, say, the Southeast region of the US. Now, analysis can get much more granular.
Rigorous scientific foundation: Their scenarios analysis builds on 21 global climate models and peer-reviewed science to analyze future risks.
Syncing with TCFD (got FOMO, yet?): Their research aligns with the Task Force on Climate-Related Financial Disclosures, perhaps the leading authority on how to report to investors on the financial risks of climate change.
New business opportunities: With validation from the investment community via BlackRock, more companies will be paying attention to the climate change-related physical risks to their assets -- real estate, bridges, highways, water treatment, power production, and more.
And if you need more proof that investors care about the risks and opportunities in climate change, check these out:
Global Investor Statement to Governments on Climate Change - aka, The Investor Agenda(link)
475+ investors representing well over USD $34 trillion in assets. Globally focused.
United Nations Principles for Responsible Investment - (link)
1,750+ investor signatories from over 50 countries representing approximately USD $70 trillion in assets. Globally focused.
IIGCC – The Institutional Investors Group on Climate Change (link)
190+ investor members with €28 trillion in assets. EU focused.
OK, here are three examples to illustrate my point: Know when enough is enough.
1. Tesla's "Summon Feature"
I guess it's because we're often lazy, and don't like to walk. Or maybe it's an obvious extrapolation of the other "cool factors" in owning a Tesla. Or perhaps it's because we sometimes forget where we parked our car.
For whatever reason, Tesla's new Smart Summon feature is designed to let you "call" your car to come meet you in parking lots (from up to 200 feet away).
Perhaps, like me, you're now picturing a young child calling her dog to come play: "Here, Fido. Come here, boy!"
Question: Of all the new possible features to add, was Smart Summon needed to make/keep Tesla awesome?
2. Deal negotiation: Pig vs. hogs
If you live in the South and you work in business or finance, then you've likely heard this expression:
"Pigs get fat, but hogs get slaughtered."
If you negotiate for too much or for too long in a deal, then you might just become that hog.
So, please, know the difference in your farm animal analogies.
3. Company revenue projections
If you've been a Board member, investment banker, or investor, then you, too, have seen your share of financial projections that make you think you should quit your job and go to work for the company you're reviewing.
But sometimes the result is that we want to run the other direction: "How could the CEO and CFO be so unreasonable in these estimates? If this is an indication of how they make decisions, then maybe I should knock some sense into them, or walk away."
(Or course, the opposite can also be true. Many CEOs know that investors will automatically provide a "haircut" to their financial projections...often like turning a long-haired hippie into a Marine, in terms of hair styles. As such, it might be a negotiating position such that the final, adjusted projections match the CEO's real ambitions.)
So, as Entrepreneurs for Impact, please be aggressive, ambitious, and innovative...but don't forget to be reasonable, too.
Don't create a new product or service in the dark, investing too much time and money in order to deliver a "market ready" product, unless you get frequent feedback along the way, often far earlier than you'd be otherwise comfortably doing.
This should be a cycle of product creation, feedback, learning, and product enhancement.
If you instead follow a linear process, then the result is often a refined product or service that your target customer does not want to buy.
Sometimes it's said that if you aren't a little embarrassed by the first version of your product or service -- the Minimum Viable Product -- then you waited too long to get feedback.
Talking about climate adaptation is synonymous with raising the white flag for some people.
I get it. Admitting that you're losing a fight is tough.
But to do the opposite is like the ostrich with its head in the sand. (For a run read on why that animal truism is very wrong, check out this funny and fact-filled summary from How Stuff Works.)
Experts agree that we cannot stop climate change. The question now is this: How much will the climate change?
Since that is true, a question for Entrepreneurs for Impact, might be this: How can I solve these coming challenges with business solutions?
From the United Nations Climate Change Adaptation Unit, here are the four priority areas you might think about (in their own words):
Ecosystem-based adaptation - Implementing projects (e.g., mangrove preservation) that utilize biodiversity and ecosystem services (e.g., coastline protection) as part of a holistic adaptation strategy.
Access to adaptation finance - Helping countries to gain access to finance for building resilience and national capacity. As examples, consider that city, county and state governments in the US have developed more than 100 adaptation plans, and the plan for New York City alone is expected to require almost $20B of investment.
Or, if this is confusing or too high level, ask yourself this:
What will homeowners and businesses need in a hotter future, where severe storms are more frequent and ?
The list is long, for sure. As an entrepreneur in this sector, you could literally be a lifesaver, while creating jobs and paying for your kids private college at the same time.