GRI Equity Review - October 2005

Wal-Mart CEO Lee Scott surprised company observers by embracing sustainability in a speech announcing ambitious initiatives on "all the issues that we've been dealing with historically from a defensive posture." The very fact Wal-Mart is addressing the issues it has so long avoided or short-shrifted - such as greenhouse gas emissions, waste reduction, product sourcing, healthcare, wages, and diversity - sends a loud signal to the market from one of the world's largest companies. Observers in the socially responsible investing (SRI) community welcome the potential changes while maintaining skepticism. "Wal-Mart's environmental goals - 100 percent renewable energy, zero waste, and sustainable products - are extremely ambitious but also very promising; merely aspiring toward the first two will have enormous ripple effects throughout their supply chain and reduce the strains that the company places on the public sector," said Shelley Alpern, director of social research and advocacy at Trillium Asset Management. "Obviously, what kinds of products constitute the third goal will be open to great debate, but the package-reduction goals will go a long way toward greening many product lines." Wal-Mart, the largest U.S. retailer, is joining the largest manufacturer, General Electric, in setting specific environmental goals while advertising those goals to shareholders, customers and the public as strategic business decisions. Goals include to invest $500 million in technologies that would reduce greenhouse gases from stores and distribution centers by 20 percent over the next seven years, increase the fuel efficiency of the truck fleet by 25 percent over the next three years and double it within a decade and design a new store that was at least 25 percent more energy-efficient within four years.

Socially responsible investing is showing signs of being memetic - in other words, spreading like a cultural virus. Specifically, traditional "mainstream" investors are starting to integrate social and environmental considerations into fundamental analysis of companies. Goldman Sachs for example, self-described as "one of the oldest and largest investment banking firms", recently issued a report to its clients entitled Global Energy: Sustainable Investing in the Energy Sector. GS inaugurated its own assessment of issues typically associated with SRI with its February 2004 launch of the Goldman Sachs Energy Environment and Social Index, assessing 30 social and environmental criteria in the global energy sector. It subsequently expanded coverage with its Environment, Social and Governance Index, increasing the number of criteria to 42 while adding a corporate governance category. "We believe that this template will be applicable across most industries because it captures the full spectrum of a company's interaction with the four key pillars: the economy; the industry in which it operates; society, from employees to partners, consumers, and counterparties; and the environment, in terms of resources consumed, emitted, and produced," states the report. "We believe excellence is a habit and that companies with superior environmental and social management are likely to be more successful in operating projects in the new world." The 164-page report demonstrates how GS applies its sustainable investing strategies to the global energy sector. The report finds GSEES leaders financially outperforming their peers by 12 percent since the index launch. It also finds strong financial performance by energy companies exposed to so-called "new legacy assets"--the largest oil and gas fields as defined by reserves that will drive the future of the industry over the next 20 years. Significantly, the report finds a strong correlation between strong ESG performance, exposure to new legacy assets (GS identified the top 50 such projects in June 2003 and the top 100 in January 2005), and financial performance. What distinguishes GS's methodology in this report from typical SRI approaches is the additional consideration of exposure to new legacy assets, while the ESG Index covers similar if not identical territory to most SRI research. The ESG Index ranks companies (based on information from their own disclosures) in five categories: environment, environmental and social management, social, corporate governance, and investment for the future. Interestingly, new legacy assets are not completely divorced from but rather intersect with ESG considerations. For example, the investment for the future category assesses community investment. 

Venture Capital

Venture capital fund-raising slipped in Q3 2005. 714 companies raised $ 5.26 billion in the third quarter of 2005, according to the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association. Venture investment decreased from Q2 2005 of $ 6.07 billion, but surpassed Q1 2005 of $ 5.0 billion and Q3 2004 of $4.66 billion. For the first nine months of 2005, investing totaled $16.3 billion compared to $15.9 billion for the first nine months of 2004. Total venture capital investing in calendar 2005 could meet or exceed 2002's $21.7 billion which is the highest level in the prior three years. Over the past three years, investing has ranged from $4-$6 billion per quarter.

On the fund capital raising side, 45 U.S.-based VC firms closed on approximately $5.39 billion in fund capital during Q3 2005, which is the lowest tally since 54 such firms raised around $4.8 billion in Q3 2004. Second quarter 2005 numbers had been $6.49 billion for 53 firms, while year-to-date VC fund-raising stands at $17.37 billion for 130 funds. This last figure actually tops the entire 2004 total, which may discount a bit of prudence and discipline, given that this may be the richest VC fund-raising year since 2001.

The Refco debacle has hit major private equity firm Thomas H. Lee Partners. In August 2004, TH Lee Partners led a $2.25 billion leveraged buyout of Refco. The deal included just over $500 million from TH Lee at around $8 per share. The IPO priced at $22 per share in August 2005 (just above its $19-$21 offering range), for a take of $583 million. TH Lee recouped around $170 million by selling shares in the IPO, but remained Refco’s second-largest shareholder (behind company management). Thomas H. Lee Partners is losing around $1 billion in just three days. It may affect their current fund raising as their due diligence was obviously weak in this case (there may even be litigation), though their performance in general is fine.

China is expected to relax capital-control rules implemented earlier this year, in a move that could make it easier for venture capitalists to invest in Chinese companies. The rule adjustment is “to help domestic companies to make full use of the international capital market, support the growth of the domestic high-technology industry and venture-capital industry,” according to a draft of the new regulations. The expected policy change comes amid a renewed push by Chinese leaders to develop a domestic high-tech industry and amid a flood of new interest by venture-capital firms in investing in Chinese technology and other companies.

Investors in China are putting money into first-time firms, first-time teams, and, in several cases, first-time VCs. Not only are these VC firms abandoning the 30-minute rule (“We don't invest in a company if we can't drive there in 30 minutes”), they're moving into the risky territory of emerging managers. That should make the next several years quite interesting.

India is overtaking China as the new hot spot for private equity investing. China is still expected to continue to absorb the lion’s share of Asian PE, but the benefits of India - including a robust stock market, an English legal system, English as the language of business and entrepreneurs with a lot of U.S. connections - are shifting at least some of the attention away from China.

At the recent LBO Symposium in Boston, Carlyle founder David Rubenstein made the striking assertion that private equity capital has become the United States’ greatest export. Not airplanes or soybeans, but money. He acknowledged during Q&A that certain U.S.-based private equity funds get capital from overseas, but insisted that the trade-winds are far stronger from U.S. institutions to European and Asian private equity funds. As he correctly pointed out, how many major European or Asian LBOs take place without at least one U.S. sponsor? How many European or Asian private equity firms are truly global, as compared to the number of global firms in the original 50? He expects overall private equity returns to decrease in the coming years, but expects a similar decline in public market fortunes. As such, the differential will remain the same, thus keeping private equity as an attractive asset class. He also reckons that U.S.-focused private equity funds have better median returns than do top-quartile firms focused on emerging markets (read: Asia), but he expects that to change dramatically.

As a specialist in family business we were especially taken by the following editorial by Private Equity Week ...

FAMILY MATTERS by Adam Reinebach Say the phrase ‘family-owned business' to a private equity professional, and you're likely to get a grimace, sigh or maybe even a dismissive guffaw. While I don't know of any firm that expressly ignores family businesses, many private equity investors have historically preferred going after other opportunities. That's in large part because buying, and then managing, a family-run business is often more painful than spending the weekend with your in-laws. The financials can be almost impossible to find, and as the deal gets closer to completion you may discover that your purchase includes an added bonus: The founder's idiot brother who's running distribution has a ‘no-fire' clause in his contract (and a no-work attitude). Even firms who specialize in buying family-run companies have their share of war stories to tell. But concerns and aggravation aside, a growing number of private equity firms are waking up to the fact that family-owned businesses are, and will continue to be, a major source of deal flow for the middle market. With so many entrepreneurs reaching their mid-to-late 60s, the collective transfer of ownership over the next several years will be enormous. And since a large number of today's would-be inheritors have no desire to keep running their family business, many of those companies will end up being sold to outsiders. And with competition what it is, buyout firms can't really afford to ignore these opportunities. For private equity firms, their success or failure with family businesses hinges on patience and flexibility. Family business owners often request ridiculously complex agreements, and it's not uncommon for them to get cold feet and cancel a transaction altogether—only to put themselves up for sale again a few months later. Access to financials is often problematic, and the due diligence process might be four times as long as it is with a ‘standard' transaction. Meanwhile, for their part, sellers need to understand how to be more appealing to buyers in order to get the highest possible price for their asset. Family business owners are clearly more savvy than they used to be, in part because of greater access to information, but also because so many private equity firms have established themselves in the middle market and are spreading the word about what they do and who they are.

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Interest Rates and Currencies

We expect the federal funds rate to continue to rise to at least 5% within the next 6 months. US GDP and consumer spending both rose in the three months to 30 September, despite the hurricanes. The GDP rose by an annual rate of 3.8% during the quarter, and consumer spending increased by 3.9%.

In the US there has been much talk of inflation, however the general conclusion is that inflation is under control, but deflationary pressures may instead rise in the first half of next year.  Prices are being pushed up, by interest rate rises, energy price rises and buoyancy in the housing market.  But the underlying demand is not burgeoning and is under pressure.  We expect stability in inflation and interest rates, but recognise that volatility risk is high.  The spike in US house prices seems to be slowing but is well off historical trends which suggests a slowdown in demand is imminent.  The weather and energy problems in the US may have curtailed short term enthusiasm.   Hoisington Investment Management Company illustrate the tension with these two charts below.  The first shows the spike in real house prices.  The second shows the reliance on imported oil, which transaltes in to higher energy costs and lower demand for domestic production.

And inflationary pressures are global.  This chart shows the massive spike that has been fuelled by war and weather change. This makes planning more challenging.

Trade and FDI

In an effort to revive stalled World Trade Organization talks, the EU and US have said they will cut controversial agricultural subsidies and tariffs. The US has said its reductions are dependent on similar action from the EU and Japan. The statements were made at a WTO meeting in Zurich which is leading to meetings in Hong Kong in December which aim to bring about a trade treaty by year-end. These proposals could see the key agricultural subsidies cut by 60% before 2010, with trade tariffs slashed by up to 90%. Trade tariffs would eventually be phased out completely, except on a limited number of "sensitive" products. Agricultural subsidies within the EU are on their way out. There is resistance, especially in areas like sugar, but they are uncomeptitive. "The abolition of the CAP is the only proper objective. There are no valid efficiency, security or fairness arguments for the continued protection and subsidisation of the agricultural sector." says Willem H. Buiter, Professor of European Political Economy, London School of Economics. If agreement on subsidy reduction is made, the Doha round of trade talks will be revived.

On the other hand, in related developments, the US has said it may retaliate against Brazil if it imposes sanctions in a cotton trade dispute. Brazil, which is at the forefront of efforts by the G20 group of developing nations to win more access to foreign market, had asked the World Trade Organization (WTO) for permission to impose $1 billion in penalties because the US has failed to meet a deadline for cutting its aid to US cotton farmers. In particular US cotton subsidies distort prices and harm competition by lowering export prices. The US could remove trade preferences which are worth more than $2 billion to Brazil. But even in the US Agriculture Secretary Mike Johanns has called for an overhaul of its system of subsidies for farming, saying that without such measures, the US would be unable to set out its own terms for access to world market.

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Energy

US oil giant Exxon Mobil has posted a quarterly profit of $ 9.9 billion, the largest in US corporate history, on the back of record oil and gas prices. Profit was up 75% and revenue rose 32% to more than $ 100 billion.

The French government has cancelled plans to part-privatise nuclear power group Areva, claiming strategic and safety concerns for its U-turn.

Climate Change and Environment

The weather is still volatile and seemingly topsy-turvy. Wilma followed Katrina through Florida and floods have disrupted life in Pakistan, on top of the earthquake. These warnings seem to be coming thick and fast, but we need to do much more to rejuvenate the world environment.

Many insurance and reinsurance firms have begun to quantify the financial damage caused by the hurricane and the extent of likely claims. Munich Re, the world’s largest re-insurer, has estimated that the total insured loss could be $15 billion - $ 30 billion and expects a significant hardening of prices and conditions in natural catastrophe and marine reinsurance, with more people likely to realise the importance of such insurance. Insurers began to study possible links between climate change and catastrophic losses in the early 1990s; the devastation and cost of Hurricane Katrina has now provided a new impulse to insurers trying to raise public awareness and push the topic onto the political agenda. Nevertheless, two reports, published by Ceres and Friends of the Earth (FOE), both conclude that climate change is catching insurance companies unawares. The Ceres report points out that “insured and total property losses ($45 billion and $107 billion in 2004, respectively) are rising faster than premiums, population, or economic growth both globally and in the US”.

European regulators are serious about curbing greenhouse-gas emissions, at least relative to the laissez-faire Americans, and new models from teh auto industry illustrate the changes. A walk around the Messe Frankfurt complex, home of the city's biennial international motor show, reveals how far European car makers have to go. There is doubt about how enormous cars, like Mercedes-Benz's eighth-generation S-Class sedan and Audi's enormous Q7 luxury SUV, which seem a part of some previous modus vivendi, fit into Europe's changing regulatory landscape. For example, the European Union has targeted that by 2009, the European new-car fleet will have to average something like 40 miles per U.S. gallon (about 5.9 L/100 km). It's virtually climate martial law. All other things being equal, European manufacturers - particularly global giants such as the VW Group and DaimlerChrysler - would rely on their historic advantages in diesel technology to meet these goals (diesel engines get anywhere from 25 per cent to 40 per cent better fuel economy than gasoline engines). But the EU has ruled out easy answers. Other European requirements in 2010 will force huge cuts in diesel particulate and nitrides of oxygen (NOx) emissions. Meeting those provisions may all but eliminate the economy advantages of diesel powertrains. About the same time, new standards for occupant and pedestrian safety will add more weight to cars and proscribe more aerodynamically efficient designs. This is herding European manufacturers toward the one propulsion technology that they have most disdained: hybrids. It's with no small sense of exasperation that the Europeans are conceding on this technological point, where they have been outflanked by Japanese manufacturers, particularly Toyota and Honda. Read more here.

Asian Environment Outlook (AEO) 2005, estimates the global market in 2005 for environmental goods and services to be about $600 billion, and projects this market will expand to more than $800 billion by 2015. Out of this burgeoning market, Asia and the Pacific accounts for $37 billion. With a growth rate of 8%-12% -- the fastest in the world -- the regional market is expected to triple to $100 billion by 2015. AEO 2005 argues that there is a critical missing ingredient in the pursuit of a sustainable future for Asia and the Pacific -- that of a fully engaged private sector. While governments determine the rules under which businesses act, the firms themselves use natural resources, make products, and generate pollution. A sustainable future for the region - and the rest of the planet -- is not possible without greater corporate engagement and environmental responsibility.

Climate change could lead to the extinction of many animals including migratory birds, says a report commissioned by the UK government.  Melting ice, spreading deserts and the impact of warm seas on the sex of turtles are among threats identified. The report says that warming has already changed the migration routes of some birds and other animals.  The UK's Department of Environment, Food and Rural Affairs (Defra) commissioned the research, which was led by the British Trust for Ornithology. 

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IT

Currently, the nearest thing to an internet ruling body is a California-based group called the Internet Corporation for Assigned Names and Numbers (ICANN). The private company was set up by the US Department of Commerce to oversee the domain name and addressing systems, such as country domain suffixes. It manages how net browsers and e-mail programs direct traffic. ICANN was to gain its independence from the Department of Commerce by September 2006. But in July the US said it would "maintain its historic role in authorising changes or modifications to the authoritative root zone file". America's determination to remain the ultimate purveyor of the internet has angered other countries which believe it is time to come up with a new way of regulating the digital traffic of the 21st century. In the face of opposition from countries such as China, Iran and Brazil, and several African nations, the US is now isolated ahead of November's UN summit. The row threatens to overshadow talks on other issues such as bringing more people online and tackling spam e-mail. The stakes are high, with the European Commissioner responsible for the net, Viviane Reding, warning of a potential web meltdown. "The US is absolutely isolated and that is dangerous," she said during a briefing with journalists in London. "Imagine the Brazilians or the Chinese doing their own internet. That would be the end of the story. I am very much afraid of a fragmented internet if there is no agreement." For this reason and the increasing type of equipment that uses internet addresses, a resolution is likely and will include the UN.

China said Sunday it is imposing new regulations to control content on its news Web sites and will allow the posting of only "healthy and civilized" news. The move is part of China's ongoing efforts to police the country's
100-million Internet population. Only the United States, with 135 million users, has more. As part of the wider effort to curb potential dissent, the government has also closed thousands of cybercafes — the main entry to the Web for many Chinese unable to afford a computer at home. Authorities in Shanghai have installed surveillance cameras and begun requiring visitors to Internet cafes to register with their official identity cards. The government also recently threatened to shut down unregistered Web sites and blogs, the online diaries in which users post their thoughts for others to read. China also shut down three intellectual forums in October.

It appeared last month that Toshiba's HD DVD format would be adopted over Sony's BluRay because of the commitment of Microsoft to HD DVD. However, this was premature. The tide has shifted to BluRay because it holds more data, has a number of film studios in its camp and now has teh backing of Dell. Some analysts reckon Microsoft's move was a desperate attempt to preempt BluRay and thereby harm one of the key players in the entertainment market where Microsoft's strategy is leading it.

Novell released SuSE 10.0 in October. The desktop Linux distribution has the power of the previous professional version but is designed for first time users too. We upgraded/installed it with no problem. It is quick, functional and nice to look at - a good buy.

A quick note on blogs, a fast emerging source of intelligence and analysis. A blog (weblog) is a website of editorial postings that is updated in real time by users. (The web is normally compared with a library - each site is a book, but blogs are more like coffee shops - each site is a table of chatter.) Often they are the daily journal of an individual who may get a following because of her position or expertise in an area. The blog search site www.technorati.com is a useful site to browse as you explore this arena - link there now and you will see top blog searches at this moment.

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Holonics and LOHAS

Holonics * Health * Environment * Education * Living

Holonics

We taken ths bold step of using the professional, but commonly unfamiliar, term "holonics" to describe our approach, replacing terms based on "integral" technology. The reasons for this are that holonics is more accurate and we have observed a number of references to holonic methods, including in the fields of management and mechanical design, suggesting it is entering mainstream use. For those unfamiliar, we have an introduction here. Simply, a holonic system is built of modules which are whole in themselves and also fit together with others (similar and different) to form a bigger, different system. For example cells (which are individually independent and perform functions within themsleves) are incorporated together to form a body of interdependent cells (which body itself is independent and functions independently) and these people are incorporated to form larger systems like a society or business. This section will tend to focus on holonics as it is reflected in personal or business management.

The Harvard Business Review published in October a study of seven organization types. The authors - Gary Neilson, Bruce Pasternack, and Karen Van Nuys - discover that the most common type is of the far-from-healthy passive-aggressive variety, in which lines of authority are unclear, merit is not rewarded, and people have learned to smile, nod, and do just enough to get by. Passive-aggressive organizations are friendly places to work: People are congenial, conflict is rare, and consensus is easy to reach. But, at the end of the day, even the best proposals fail to gain traction, and a company can go nowhere so imperturbably that it's easy to pretend everything is fine. Such companies are not necessarily saddled with mulishly passive-aggressive employees. Rather, they are filled with mostly well-intentioned people who are the victims of flawed processes and policies. (See Psychology of Tyranny in Risk section.) Commonly, a growing company's halfhearted or poorly thought-out attempts to decentralize give rise to multiple layers of managers, whose authority for making decisions becomes increasingly unclear. Some managers, as a result, hang back, while others won't own up to the calls they've made, inviting colleagues to second-guess or overturn the decisions. In such organizations, information does not circulate freely, and that makes it difficult for workers to understand the impact of their actions on company performance and for managers to appraise employees' value to the organization correctly. A failure to match incentives to performance accurately stifles initiative, and people do just enough to get by. Breaking free from this pattern is hard; a long history of seeing corporate initiatives ignored and then fade away tends to make people cynical. Often it's best to bring in an outsider to signal that this time things will be different. He or she will need to address every obstacle all at once: clarify decision rights; see to it that decisions stick; and reward people for sharing information and adding value, not for successfully negotiating corporate politics. If those steps are not taken, it's only a matter of time before the diseased elements of a passive-aggressive organization overwhelm the remaining healthy ones and drive the company into financial distress. Here are the category types and the results of how workers identify their own companies:

Healthy Organizations:

17%	Resilient - Highly adaptable to external market shifts, yet focused on and aligned behind a coherent business strategy.
10%	Just-in-Time - Inconsistently prepared for change but can rise to an unanticipated challenge without losing sight of the big picture.
4%	Military Precision - Dominated by a small, involved senior team; succeeds through superior execution and the efficiency of its operation.

Unhealthy Organizations

27%	Passive-Aggressive - Congenial and seemingly conflict free, achieves consensus easily, but struggles to implement agreed-upon plans.
10%	Too large and complex to be effectively controlled by a small team, but has yet to democratize decision-making authority.
9%	Overmanaged - Its multiple layers of management create analysis paralysis and also politicize decision-making.
8%	Fits-and-Starts - Contains scores of smart, motivated, and talented people who rarely pull in the same direction at the same time.
15%	Inconclusive organization type

Health

Eat your brussels sprouts! Scientists assert that eating vegetables from the cabbage family can reduce the risk of lung cancer for people with a certain genetic make-up. Such cruciferous vegetables had already been linked to reduced rates of lung cancer, but it had not been clear why. The study found eating the vegetables at least once a week cut cancer risk for people with inactive versions of two genes, carried by 70% of people. The Lancet study was by International Agency for Cancer Research scientists. The two genes which were studied are the GSTM1 and GSTT1, which normally protect the body against certain toxins. Vegetables such as cabbage, broccoli and sprouts are rich in chemicals called isothiocyanates, which strongly protect against lung cancer. Normally, isothiocyanates are eliminated from the body by "clean-up" enzymes produced by the genes GSTM1 and GSTT1. But eating the vegetables at least once a week was found to have a 33% protective effect against lung cancer in people who just had an inactive form of the GSTM1 gene. Around 50% of people have this form of this gene. In those with an inactive form of the GSTT1 gene, there was a 37% protective effect. Around 20% have this form. But individuals who had inactive versions of both genes - which applies to 10% of the population - were 72% protected.

More general studies presented to the annual meeting of the American Association for Cancer Research add to the evidence that changing your diet may be among the most effective ways of prolonging your life. Up to a third of cancers are thought to be associated with diet. Experts say eating more fruit and vegetables is the second most effective way to reduce the risk of cancer, after not smoking. Vegetables, fruit, nuts, oily fish and whole grains stand out in the nutritional crowd for their cancer preventing qualities. Brassicas contain glucosinolates, which are broken down by chewing or cutting into sulphoraphane which has been shown to have anti-cancer properties. In another study, researchers found that using garlic to flavour meat could help counteract the carcinogenic substances produced in cooking protein.

National Geographic covered longevity in their latest issue.  Included in their review were several case studies of very old people, including a number over 100 years old.  The two main recommendations for long life are lifestyle choices: be vegetarian and be active.  Longue vie! 

The Ecologist September issue has a comprehensive review of aspartame, a chemical sweetener. The findings are worrying and if you use it we recommend reconsidering.

New research has revealed that men who smoke are damaging their fertility as well as their general health. Two-thirds of male smokers were found to have sperm that did not have the normal ability to fertilise an egg. And heavier smokers were more likely to fail the test. Those who failed the test were, on average, 75pc less fertile than non-smokers. The findings are revealed in a study funded by the American cigarette giant Philip Morris - which manufactures a number of leading brands, including Marlboro which had its 50th birthday in October. Researchers from the University of Buffalo studied 18 men who had smoked at least four cigarettes a day for more than two years and then compared their sperm function with that of non-smokers.

McDonalds will put nutritional information on food packaging from next February, including details of fat and salt.  They are also giving Ronald a sporty makeover. And Fair Trade Certified organic coffee will now be served in 658 McDonald's restaurants in New England and Albany, New York. The coffee brand is Newman's Own Organics, roasted by Green Mountain Coffee Roasters. These initiatives demonstrate responsible business practices and bode well for the stability and growth of that business.

Environment

Coca-Cola is increasingly in the sights of Corporate Accountability International. Coke's business policy and practice have a powerful affect on water supplies in communities. Now the company is building a bottled water business CAI is concerned about their misleading marketing that undermines confidence in tap water. Especially unethical in countries where there are limited water resources and a population that ought to spend on education and other more pressing needs. Whether or not Coke is improving its practice and policy, the company will be affected by the deterioration of global water systems and supplies. They may engage in greenwash today but will have to face the reality of water scarcity within five years because of the natural priorities of water supply and safety. If you want to help, don't buy/drink coke/soft drinks or bottled water.

Sweden has launched a commuter train running on biogas.  Its top speed is 130 kmh and emits lower pollution than fossil fuels.

Activities, Books and Gatherings

While making some minor website changes, I was delighted to find out that if you do a Yahoo search for "holonics" Astraea comes up on the second page, and if you do a search for "integral investing" GRI Equity is top of the list!

We put our first music video "Prince of Peace" by Galliano online. And hope more will follow.

The film version of Hitchhiker's Guide to the Galaxy is a brilliant story with many enlighted philosophies woven in. Worth viewing.

See the website http://www.northsoutheastwest.org/ for a dynamic look at climate change.

Pet lovers may enjoy http://www.canineportraits.org which is contributing funds to train a teacher in the US. Teach for America is the national organization of recent college graduates who commit to teach in public schools serving low-income rural and urban communities.

The International Spirit At Work highlights companies that have implemented explicit spiritual practices, policies or programs inside their organizations. For the past four years, ISAW has recognized 23 distinguished companies ranging from The Body Shop, to Times of India, and to the Australia and New Zealand Banking Group Ltd. The 2005 ceremony honours the nine new recipients of the award. The event showcases a number of inventive frameworks that the honorees used in implementing their spiritual value system into a results-oriented environment of business.

On November 7th, 9-10 PM Eastern there will be a teleconference with Dee Hock, founder of VISA and author of One from Many: VISA and the Rise of Chaordic Organizations. His work is highly recommended. See details of the conference here, or see the latest book One from Many: VISA and the Rise of Chaordic Organizations here.

 

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This report has been prepared for information purposes and is not an offer, or an invitation or solicitation to make an offer to buy or sell any securities. This report has not been made with regard to the specific investment objectives, financial situation or the particular needs of any specific persons who may receive this report. It does not purport to be a complete description of the securities, markets or developments or any other material referred to herein. The information on which this report is based, has been obtained from publicly available sources and private sources which may have vested interests in the material referred to herein. Although GRI Equity and the distributors have no specific reasons for believing such information to be false, neither GRI Equity nor the distributors have independently verified such information and no representation or warranty is given that it is up-to-date, accurate and complete. GRI Equity, associates of GRI Equity, the distributors, and/or their affiliates and/or their directors, officers and employees may from time to time have a position in the securities mentioned in this report and may buy or sell securities described or recommended in this report. GRI Equity, associates of GRI Equity, the distributors, and/or their affiliates may provide investment banking services, or other services, for any company and/or affiliates or subsidiaries of such company whose securities are described or recommended in this report. Neither GRI Equity nor the distributors nor any of their affiliates and/or directors, officers and employees shall in any way be responsible or liable for any losses or damages whatsoever which any person may suffer or incur as a result of acting or otherwise relying upon anything stated or inferred in or omitted from this report.