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What role are public-private partnerships going to have in funding development in cities? Is that just happy talk or is there reality to it? Hsu-Chen: It’s very real talk. And we’re getting smarter and better at it. Right now a lot of the incentives the city offers are around getting the right density at transit nodes. Kate and I worked together on a project just a couple years ago—Kate in the private sector, I in the public—to deliver a new state-of-the-art skyscraper right across the street from Pennsylvania Station.

In Europe you have a strong central government that can come in and work with the private sector to deliver something locally. Here it’s up to the municipalities to figure out how to use those public-private partnerships at the local level to deliver the types of benefits that Edith was talking about.

The two most common laments from impact investing devotees were the enormous difficulty of generating positive impact at the necessary scale, and the related fear that there simply weren’t enough investable projects to absorb the level of capital potentially interested in investing in them.

Look at index after index, and you see SRI funds that consistently outperform their non-responsible counterparts. It's easy to understand why, if you consider companies incorporating sustainable and socially responsible practices are generally also innovative and forward-thinking in other areas -- which tends to lead to better returns.

Cliff Feigenbaum, publisher of Green Money, believes that SRI is gaining wider market acceptance, but still remains niche. As he told me, it's migrated from values-based personal investors to become part of much larger institutional portfolios, but only a minute part of these portfolios. It would appear institutional investors include SRI funds to tick off a box for trustees and shareholders.

Far from being a faddish niche, SRI is now very much part of the investing world, with more than $3 trillion in assets under professional management in the U.S. alone, according to the 2010 Report on Socially Responsible Investing Trends in the United States from U.S. SIF, the Forum for Sustainable and Responsible Investing. SRI hinges on use of ESG (environmental, social, governance) analysis, shareholder advocacy, and "community investment" strategies.

That $3 trillion in publicly traded securities in the U.S. represents a more than 13 percent increase in assets under management between 2007 and 2010. Over the same period, the broader universe of professionally managed assets grew by less than 1 percent. So, here is the $3-trillion question: Why has the SRI space enjoyed such robust growth, during a period of global economic slowdown?

First, socially conscious investors have benefited from an expansion of quantity and improvement in quality of investment products and services designed to make money and make a difference.

In an article titled "Relevance Achieved" in the fall 2012 issue of Green Money Journal, Amy Domini of Domini Social Investments commends sustainable investors for their successful campaign to pressure corporations into issuing sustainability reports. What was a rare occurrence 30 years ago is now practiced by more than 80 percent of companies, she writes.    As a result, regulators are now more willing to mandate that companies report on issues such as greenhouse gas (GHG) emissions and asset managers are increasingly considering environmental, social, and corporate governance (ESG) factors in their investment analysis. And academics are reporting more and more examples of outperformance by leading sustainable firms.  "As society sees the full cost of traditional business behavior," Domini concluded, "SRI (socially responsible investing) will be embraced as the single most important lever towards building a better world than the planet has ever seen." 

Contrasting the growth capitalism still dominant today with sustainable capitalism, Joe Keefe of Pax World writes, "The sustainable investment community's role is vital because the fundamental struggle is between a long-term perspective that fully integrates ESG factors into economic and investment decisions and our current paradigm which is increasingly organized around short-term trading gains as the primary driver of capital investment and economic growth regardless of consequences/externalities." 

The CRA was created in 1977 and mandates that banks make credit and capital available to low- and moderate-income communities.

Launched in 1999, the Fund’s CRA Shares are designed specifically for banks looking to receive positive consideration on the investment test portion of their CRA exam. Once a bank makes an investment in the CRA Shares, the Advisor confirms its targeted assessment area(s) and begins seeking CRA-qualified investments in those counties. From a financial standpoint, each bank owns a pro-rata share of the Fund whereby the risks and returns are diversified among all the shareholders. The Fund invests primarily in government-related subsectors of the bond market that support community development such as agency-backed securities and taxable municipal bonds.

The CRA Qualified Investment Fund CRA Shares has provided solid performance throughout its history.

Impact investments are investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return.

A rapidly growing supply of capital is seeking placement in impact investments across geographies, sectors, and asset classes, with a wide range of return expectations.

This investment interest is sparking the emergence of a new industry that operates in the largely uncharted area between philanthropy and a singular focus on profit-maximization.

In this new initiative, Ceres and the Tellus Institute will partner on the Global Initiative for Sustainability Ratings (GISR) to seize an urgent opportunity to create a non-commercial, generally accepted sustainability ratings standard that meets the highest standards of technical excellence, independence and transparency.

The last decade has witnessed the rise of sustainability as a defining element of responsible business strategy and performance. In fact, companies like Nike, GE, Unilever, Novo Nordisk, Natura and dozens of others recognize sustainability as integral to their global competitiveness and long-term prosperity.

One need look no further than the BP oil spill, the collapse and taxpayer bailout of the US auto industry, and the Massey Energy mine explosion to understand why financial markets must develop better ways to assess sustainability performance.

To integrate sustainability metrics into their real estate investment strategies, institutional investors need to have qualitative and quantitative information on the sustainability performance of direct and indirect property investments. The GRESB Survey is the only sustainability benchmark that captures more than 50 data points to reflect the sustainability performance of an institutional investor’s real estate portfolio. These metrics are divided between seven sub-categories within the environmental and social dimensions, with an additional category added for members with property development activities which is not included in the total GRESB score. The weight of each dimension depends on how it may affect the risk-return profile of the investment portfolio and the individual metrics are scored to represent the relative impact to investors.

cities in Europe face the challenge of combining competitiveness and sustainable urban development simultaneously.

This project, however, does not deal with the leading European metropolises but with medium-sized cities and their perspectives for development. Even though the vast majority of the urban population lives in such cities, the main focus of urban research tends to be on the ‘global’ metropolises. As a result, the challenges of medium-sized cities, which can be rather different, remain unexplored to a certain degree

Medium-sized cities, which have to cope with competition of the larger metropolises on corresponding issues, appear to be less well equipped in terms of critical mass, resources and organizing capacity.

local and city governments play an increasingly influential role.

‘A ‘local developmental state’ model appears to have emerged in many of the most successful countries and regions, most notably in post-war northern Italy, Southern Germany and in several Scandinavian countries…. The core idea is that sub-national levels of government can, and should, be pro-active in building the institutional and organisational infrastructures required for growth-ori¬ented micro-, small and medium enterprises to emerge and succeed.’

They are also at a scale where it is much easier for relatively small organizations to engage at the city level

“Why do we do all this?” former Mayor Gavin Newsom said in a 2008 interview. “Because it’s the right thing to do. We’re consistently among the top travel destinations in the world. We think people are attracted to the values of this city.”

“There is no endeavor more noble than the attempt to achieve a collective dream. When a city accepts as a mandate its quality of life; when it respects the people who live in it; when it respects the environment; when it prepares for future generations, the people share the responsibility for that mandate, and this shared cause is the only way to achieve that collective dream.”

And it's no coincidence that economic vitality and livability go hand in hand. Creativity in music, arts and culture, plus neighborhoods and recreational facilities that rank high for "coolness," attract like-minded professionals who go on to cultivate a region's business scene.

What role are public-private partnerships going to have in funding development in cities? Is that just happy talk or is there reality to it? Hsu-Chen: It’s very real talk. And we’re getting smarter and better at it. Right now a lot of the incentives the city offers are around getting the right density at transit nodes. Kate and I worked together on a project just a couple years ago—Kate in the private sector, I in the public—to deliver a new state-of-the-art skyscraper right across the street from Pennsylvania Station.

The world has become increasingly urban—more than 50 percent of the globe’s population now live in cities. How can we make them more sustainable, efficient, and prosperous?

We don’t have a strong central government. We have a federal system.

To date, however, the industry has yet todevelop standards to evaluate ESG datathat compare to its traditional evaluation o portolio perormance.

  5 Responsible Property Investment [RPI] is anemerging investment strategy and disciplineconcerned with integrating environmental,social, and governance [ESG] data intoinvestment decision-making

Real estate investment plays a undamentalrole in determining how society usesresources, how the built environmentshapes social lie, how economic activitycan be sustainable over time. As an assetclass, real estate oers especially tangibledemonstrations o the importance o ESGanalysis in creating value or investors andsociety alike. We believe that a robustmetrics system can help shape the marketto better create sustainable outcomes or allstakeholders