A journey from Egg toA journey from Egg toZopa to Green ThingJames AlexanderJames AlexanderThursday 20th November 2008

A journey from Eggto Zopa

Consumers are changingg g

“ The consumer… The consumerrevolution of the last 30years is giving way to theyears is giving way to theFreeform Revolution ofthe next 30 …”the next 30 …

We have been here before

TECHNOLOGY INSTALLATION DEPLOYMENTTurningPointTECHNOLOGY

REVOLUTION ERUPTION FRENZY GOLDEN AGE MATURITYPoint

Canalmania11779933

1st ‘IndustrialRevolution’ 11777711

1188110011881199

11882255Panic11779977

2nd Age of Steam& Railways 11883366Railwaymania11882299

Revolutions11884488

Panic11884477 11885577 11886666 11887733

9933 11881100

Revolutions11884488

3rd Age of Steel, Electricity& Heavy Engineering The “Great

Depression”1188775511889900

Argentina(Baring) USA

11889933

11990033USA

“Rich man’spanic”

11990077 11992200

11889933 panic

4th Age of Oil, Automobiles& Mass Production 11993300ss

aannddWWWWIIII

11990088 11992200*11992299

USA stockmania 11996600 11997744

“Oil crisis”

5th Age of Information& Telecommunications& sustainable living ina resource constrained world

?? 2200????11997711 11997744*“Oil crisis”

11998877

11998899Collapse2nd World

11999977Asia

22000000NASDAQ

22000055eBay

Source: Adapted and developed from Carlota Perez ‘TechnologicalRevolutions and Financial Capital – the Dynamics of Bubbles and GoldenAges’

a resource constrained world 2nd World NASDAQ

Freeform companies, enabled by technology aretransforming industries

TECHNOLOGY INSTALLATION DEPLOYMENTTurningPointTECHNOLOGY

REVOLUTION ERUPTION FRENZY GOLDEN AGE MATURITYPoint

5th Age of Information& Telecommunications ?? 2200????11997711 11997744*

“Oil crisis”

11998877

11998899Collapse2nd W ld

11999977Asia22000000NASDAQ

22000055AAmmaazzoonneBayGoogle

22000000 22000055 22001100

2nd World NASDAQ Google

? ?P2P Payments P2P Voice P2P Video

? ?P2P Trading P2P SocialSocial Networks

f f f

P2P FinancePersonalisedSearch P2P Info P2P Photos

eBay for things … iTunes for music … Zopa for money

The online marketplace where peoplemeet to lend and borrow moneymeet to lend and borrow moneyWith no bank in the middle, both parties get better rates

LendersBorrowers Lenders• Great Returns

Borrowers• Low, low rates

• It’s human• No banks

• It’s safe• It’s fair

• You’re in control

Lenders receiving a c.30% better return than base rate; Borrowers borrowing c.30% below the market

Financial return and social rewardWorking, differentiated, compelling

200• Launched in the UK March 2005

• >200,000 members

• Borrowers getting the cheapestloans in the countryy

• Lender returns 7-11%

• <0.2% defaults

L h d & l d (!) th US• Launched & closed (!) the US

• Launched in Italy

• JV in Japan

Control, community, transparency andethicality key for value and trust

Opennessis highlyvalued

“No other financial site that I havevisited has the guts to run a discussionb d d t k it th hivalued

Users feel

board and take it on the chin.

That makes me feel like I am part of acommunity and seems to trigger a sense of

valuedand

committed

y ggbelonging. With belonging comes pride andpassion.

Usersbecome

champions

When I tell my friends about Zopa I feel hurtby any negative comments they make asthough the site was my own, and for thatreason it gets me all wound up when I seechampions

of Zopareason it gets me all wound up when I seeeven the tiniest glitches on the site”

Mosshill, Zopa lender (Oct 18 2006, 09:17 AM)

An evolving modelMore involving, more viral

An evolving modelA derivative in the US

Social Finance is already globaly gExpect proliferation, niches developing, consolidation

A few things I learntA few things I learnt

• Great groups of committedpeople can achieve amazingthingsg

• Get really clear on your insights

• Creativity comes fromeverywhere - liberate people’stalenttalent

• Always do the right thing - “be”your vision and values

• Ask for “Help”p

From Zopa to Green Thing

James bird picp

…a 3°C rise would cause40% of all species to

become extinct

Virtually universal awarenessVirtually universal awarenessAwareness =

100%100%

Ozone hole (CFCs)Global warming

Climate change

??

The Greenhouse Effect

Acid rain

Human Volcano

Climate change

?

?

?

?Sir Stuart Rose

The Greenhouse Effect

?

?

?James Hansen

Sir Nicolas Stern

19601908 1980 2000 2008 Time

? ?Svante Arrenhius Reid Bryson Al Gore

Gilbert

e

Inclined28.62mInclined28.62m

Occasional10.54m

Occasional10.54m Committed

9.68mCommitted

9.68m

Non5.01mNon

5.01m

Source: Defra, TGI, 2007

EARLY ADOPTERS/INNOVATORS

EARLYMAJORITY

LATEMAJORITY LAGGARDS

Onlookers26%

ConvenientlyConscious35%

Vocal Activists

4%

PositiveChoosers31%

• Only partially concernedabout ethical andenvironmental issues

35%

• Aware of environmentalchange and ethical

4%• Concerned and active• Vocalise discontent

31%

• Aware and guilty aboutlifestyle environmental issues

• Not particularly desiringto live ethically, or doingthe easy activities

change and ethicalissues but not reallyinterested

• Endorses penalties fornon-green actions bycompanies

lifestyle• Boycotts ‘bad’companies

• Do not complain vocally• Supports localcommunity

PrincipledPioneers

4% • Do ‘easy’ things likereducing water use

4%• The most committed togreen issues

INCREASING ETHICAL AND ENVIRONMENTAL CONCERN AND ENGAGEMENT

Source: HenleyCentre HeadlightVision Planning for Consumer Change 2007

80% of respondents across 15 developed nations80% of respondents across 15 developed nationswould prefer working for a company that “has a goodreputation for environmental responsibility”reputation for environmental responsibility

Ipsos Mori

We have been here before

TECHNOLOGY INSTALLATION DEPLOYMENTTurningPoint

We have been here before

TECHNOLOGYREVOLUTION ERUPTION FRENZY GOLDEN AGE MATURITY

Point

Canalmania11779933

1st ‘IndustrialRevolution’ 11777711

1188110011881199

11882255Panic11779977

2nd Age of Steam& Railways 11883366Railwaymania11882299

Revolutions11884488

Panic11884477 11885577 11886666 11887733

9933 11881100

Revolutions11884488

3rd Age of Steel, Electricity& Heavy Engineering The “Great

Depression”1188775511889900

Argentina(Baring) USA

11889933

11990033USA

“Rich man’spanic”

11990077 11992200

11889933 panic

4th Age of Oil, Automobiles& Mass Production 11993300ss

aannddWWWWIIII

11990088 11992200*11992299

USA stockmania 11996600 11997744

“Oil crisis”

5th Age of Information& Telecommunications& sustainable living ina resource constrained world

?? 2200????11997711 11997744*“Oil crisis”

11998877

11998899Collapse2nd World

11999977Asia

22000000NASDAQ

22000055eBay

Source: Adapted and developed from Carlota Perez ‘TechnologicalRevolutions and Financial Capital – the Dynamics of Bubbles and GoldenAges’

a resource constrained world 2nd World NASDAQ

Sustainable living = the new common sense?Technologyrevolution

‘Common-sense’ innovation principles

Sustainable living the new common sense?

FIRST‘IndustrialRevolution’

Factory production & mechanisationProductivity / time keepingFluidity of movement - local networks

SECOND Standard parts / machine made machinesSECONDAge of Steam& Railways

Standard parts / machine-made machinesScale = progress - energy is available where neededInterdependent movement - agglomeration / industrial cities / national markets

THIRD Giant structures - universal standardisation - science as a productive forceAge of Steel, Electricity &Heavy Engineering

Economies of scale of plant / vertical integrationWorldwide networks and empires - great scale for world market power

FOURTHAge of Oil

Mass production / mass markets / product standardisation / horizontal integrationEnergy intensity (oil based) & synthetic materialsAge of Oil,

Automobiles &Mass Production

Energy intensity (oil based) & synthetic materialsFunctional specialisation / hierarchical pyramidsCentralisation / metropolitan centres & suburbsNational powers, world agreements and confrontations

FIFTHAge of Information &Telecommunications

Information-intensity / instant contact & action / instant global communicationsKnowledge as capital / intangible value addedNetwork structures / segmentation of markets / proliferation of niches / clustersHeterogeneity, diversity, adaptabilityEconomies of scope & specialisation combined with scaleGlobalisation / interaction between the global and the local

Source: Carlota Perez ‘Technological Revolutions and Financial Capital – the Dynamics of Bubbles and Golden Ages’

“ There is a growing business imperative about sustainable… There is a growing business imperative about sustainabledevelopment, for two reasons: customers expect it and companiesthat do not pay attention to what their customers expect will suffer.S dl th b i t iti t th f BT hi hSecondly, there are business opportunities out there for BT which meanthat we can both do good and be profitable. I think our workon teleconferencing is an example of where something that acceleratessustainable development is also one of our fastest growing businesses.That changes and accelerates the interest of even the most commercially

minded of boards …”minded of boards …“… I think it is a permanently rising curve in expectation, not necessarilylegislation. Certainly, our customers and our staff expect more of thecompany today than they did 20 years ago Ten years ago it was not thatcompany today than they did 20 years ago. Ten years ago it was not thathigh up the agenda of most companies, now everyone knows what you aretalking about. Not only that, but I think the days of paying lip

i t itservice to it are over. Pressure to perform, both internally generatedand external, will increase. Our customers and our staff expect more of thecompany today than they did 20 years ago …”

Sir Christopher Bland, Chairman, BT (2007)

Transparency = credibility

Sustainable Development - “from business riskto business opportunity”to business opportunity

£200m 100 point eco-plan£200m, 100 point, eco plan

Plan ABecause therePlan ABecause thereis no Plan B

What is Plan A?

• By 2012 all our operations in UK & Irelandwill be carbon neutral

• 35,000 product lines

will be carbon neutral

• By 2012 we will send no waste to landfill

• 2,000 factories, over20,000 farms and250,000 workers• We will ensure key raw materials come

from the most sustainable sources possible around the world

• 70,000 employees, andthe 16 million people

from the most sustainable sources possible

• We will be a fair partner and help you make the 16 million peoplewho visit our storesevery week

a difference to livelihoods and communitieslocally and across the world

• We will help customers and employees livea healthier lifestyle

Turning staff into champions

• Over 500 PlanA champions

• Engagement• Engagementinnovation

• Unexpected,valuableconsequences

Make it easy for customers to do theright thing

• Plastic bags

• Impact awareness is lowImpact awareness is low

• Suspicious of talk about being‘green’green

• Often confused aboutsustainable options

• Not willing to change unlessg geasy

Engaging customers

• Better and• Better….andgreener

• Stylish design…and saves energy

• Great tasting…and healthy

• Simple messages

A few things I learntA few things I learnt

• Sustainability is mandatory

• Sustainability Requires• Leadershipp• Clear point of view• Coherent plan• Engagement• Engagement• Transparency

• It’s a journey:• Amore sustainable

organisationg• Enhanced growth and

profitability• Innovation in a resourceInnovation in a resource

constrained world

Stick With What You Got

E O Th M tHuman Heat

Easy On The Meat

All-Consuming

Plug OutStay GroundedStay Grounded

Walk The Walk

to help as many people as possiblep y p p pin as many countries as possibleto do the green thing

and use people powerand use people powerto get government and businessto do the green thing toog g

Environmental advisors

Satish Kumar, founder and editor of Resurgence magazine

Alex Steffen, co-founder and executive editor of WorldChanging.com

Dr. Wangari Maathai, Nobel Prizewinner and tree-planter extraordinaireg , p

Cathy Zoi, chief executive officer of Al Gore's Alliance for Climate Protection

G M h ll ti di t f Cli t O t h d I f ti N t kGeorge Marshall, executive director of Climate Outreach and Information Network

Jules Peck, Quality of Life Policy Group director

Robert Webb, founder and managing director of XCO2 and Quiet Revolution

Anthony Turner, founder and managing director of Carbon Sense

Ed Gillespie, co-founder and creative director of sustainability consultancy Futerra

$0 on marketing … >2.1m content views … 171 countries …>4 000 000 Kg CO2 saved 44k stories presented at TED>4,000,000 Kg CO2 saved … 44k stories … presented at TED …presented to the APPCCG … Green Thing Trust a registered charity

“ N d bt th t ll f“… Never doubt that a small group ofthoughtful, committed citizens can changethe world. Indeed, it is the only thing thatever has ”ever has …

Margaret MeadMargaret Mead

A journey from Egg toZopa to Green Thingp gThank you. Feel free to get in touch:

James AlexanderJamesalexander1969@mac.com+44 7957 209670