BACKGROUND UPDATE ZEM ALLIANCE Dec 2009

BACKGROUND UPDATE
BACKGROUND UPDATE

(ZEM) Initiative at the Climate Conference (COP 15) in Copenhagen – Moving from Ideas to Action The Climate Conference in Copenhagen was the setting for launching the Zero Emission Mobility (ZEM) Initiative and its bold international research effort to make electric vehicles cheaper and available. ZEM also signed a cooperation with one of the largest regional EV demonstration program in Europe, and joined at the Climate Leader Summit in the launch of a working group with leaders from cities and regions to accelerate the uptake of electric vehicles with a focus on policy, finance and deployment.

While Nobel Laureate Pachauri and the chief negotiators at the Copenhagen Climate Conference were chauffeured around in electric cars managed by Move About, the EV car sharing company that is part of the ZEM Initiative, ZEM signed an agreement with Europe’s largest research network, the leading US research center, and the leading technical certification group to build a large data model to understand how to make the use of EVs cheaper. Make the EV affordable:

To get the best financing for EV batteries, we need to quantify the factors that influence their value throughout their lifetimes, extend that useful life by regularly monitoring and optimally managing batteries while in use, and capture the maximum value possible after the batteries have ended their useful lives in cars (i.e. to help repurpose them in other energy storage applications). This requires a global R&D effort and a partnership among EV pioneers.

· Therefore, ZEM signed research partnerships with DnV, (the Norwegian technology certification group) and with the German Fraunhofer Institute (Europe’s largest research group) to assess the key factors which affect battery life and performance. This research is done in close cooperation with leading battery producers, OEMs, and electric utilities.

· ZEM has also concluded an agreement with the US Department of Energy National Renewable Energy Laboratory (NREL) with respect to information and analyses of battery designs and their cell chemistry, energy and power performance, and degradation mechanisms in real life driving cycles. “Such collaborative efforts are needed so that the electric vehicle can make a substantial contribution to lowering the CO2 emissions in the transport sector,” says Prof. Matthias Busse, Head of the Fraunhofer Institute IFAM in Bremen”. Make the EV accessible:

In order to advance the broader acceptance of the EV, cars have to be out in the field and become accessible to a broader clientele, ranging from corporate users and local authorities to individuals. ZEM is therefore initiating a number of early commercial projects in partnership with local utilities, financial institutions, and governments.

· As part of this effort, ZEM signed a Partnership Memorandum with VLOTTE, the Austrian energy consortium, launching a large scale EV Program in Austria that will test both the operational and financial/economic aspects of operating EVs.

· The project with VLOTTE who already as one of the largest EV fleets in EUROPE, will demonstrate the “mobility-on-demand” with Move About. one of the largest EV fleet providers in the world. Eveline Steinberger, head of the Austrian Government’s Climate and Energy Fund, announced at the ZEM meeting additional support of the VLOTTE Project.

“We need a radical rethinking of how tomorrow’s vehicles will be used. We are therefore happy to work with ZEM and MoveAbout on their international roll-out of the shared use of EVs – the concept of “clean mobility on demand” says Christian Eugster of the Vorarlberg Kraftwerke in Austria, a member of the VLOTTE Consortium. Make the EV a city priority:

At the Climate Leaders Summit in Copenhagen, ZEM also joined the non-profit Climate Group in creating a working group on EV policy, finance and deployment. The goal is to launch “EV20”, a global initiative to accelerate the uptake of electric vehicles by working with leaders from cities, states and nations together with auto manufacturers, financiers and the electric vehicle supply chain. Prince Albert II of Monaco who chairs the working group said, “The EV20, convened by The Climate Group with the support and collaboration of my Foundation will work to turn electric vehicles into a mass market solution to climate change by mobilizing leading public and private players to adopt bold new EV projects, policies and commitments, identify and address barriers, and share emerging understandings around best practices.”

The ZEM initiative emerged from the work in the World Economic Forum’s Agenda Council for the Future of Transport to make the EV cheaper and accessible for the global consumer. The resulting ZEM Alliance is a coordinated demonstration and research initiative by global electric vehicle pioneers among automobile manufacturers, electric utilities, research centers and service partners that jointly work to overcome barriers and create business solutions to be launched in January 2010. The Battery Bottleneck and the lack of Infrastructure

Battery cost is the main bottleneck to widespread EV adoption. Given that the battery technologies are still quite young, and have not yet attained economies of scale, they remain expensive. Capturing the total value of the full life cycle of the batteries, and reducing the risk to the consumer in this new technology fields are key to overcoming the battery challenge. Similarly, the chance to become familiar with the electric car is important, and we need the engagement by corporations and municipalities to make EVs accessible to many new users. A New Model The electric vehicle must be simple to manage and cost efficient to run. The consumer value proposition must therefore insulate the end user from the complexities of battery technology and the risk associated with new technology, offer simple payment plans that includes a lease of the battery, and promote mobility-on-demand (EV car sharing) : i.e. moving from CAPEX to OPEX.

In order to achieve this we have to better understand what influences the battery value of its lifetime, capture the life cycle value of the battery’s energy storage capability, and extend the batteries useful life by regularly monitoring and optimally managing the battery while in use. Finding Solution with a Scientific Approach

As a first step we have agreed on a joint work plan to identify key factors which affect battery life and performance, to develop and test ways to convert the battery investment cost to a mobility fee per month/mile, to link the battery technology to utility requirements, and to research post-mobility applications of EV batteries. For that we have established 7 working groups to which international experts and the partners in the ZEM Alliance will work on the next two years, to find answer to:

· what affect battery life and performance under real life conditions, and how can we influence it?

· What are second life application for EV batteries, and what repurposing technology is required?

· What are the economics of battery recycling and can we expect a raw materials shortage?

· What are new models for government support and grant/loan programs for EVs and batteries?

· How are data best collected and transferred, and what communications to the grid are desired?

· How do consumers use the EVs and how to they accept sharing EVs and leasing batteries?

· What business models do best meet the needs of utilities and automakers – and the consumers?

Implementing ZEM Programs in Real Life today: Think Global and Act Local In order to advance the broader acceptance of the EV, we believe that cars have to be out in the field and become accessible to a broader clientele, ranging from corporate users and local authorities to individuals. ZEM initiates therefore early commercial projects beyond mere demonstration efforts in partnership with local utilities, financial institutions, and governments in order to implement the global ZEM Model and make the EV affordable and accessible to global customers. Finding viable options for financing the batteries is a key to making the EV accessible and affordable.

Inspire Group

Inspire Group
Inspire Group

Products and services Our products and services can be used for all kinds of funds; equity funds, bond funds, hedge funds, private equity and venture funds and so on. We have extensive analytical skills and can easily adapt our coverage to follow any specialised markets or sectors Development of qualitative and quantitative extra-financial methodology

This service aims to assist fund/hedge fund managers and private equity firms integrate an extra-financial analysis into their portfolio selection process by providing a tool to rank companies on the basis of their management of risk and future business opportunities posed by extra-financial issues. The methodology developed can be tailored to reflect the particularity of individual investment strategies. InSpire recently invested in the Norwegian electric car manufacturer Think. Think produced one of the largest fleets of electric vehicles in the world with the TH!NK city, launched in 1999. A new model is now under development and will be launched in Norway in 2007 and selected international markets in 2008.

Think’s mission is to create the most environmentally friendly vehicles in the world in a commercially successful way. inSpire will help them achieve this goal by developing a radically modern business model for producing, sourcing, marketing servicing and financing a car that meets the demands of a 21st century business. More information about Research for theme-related funds Risk assessment analysis for particular sustainable development themes (i.e. water and clean technologies). In order to assist fund/hedge fund managers and private equity firms with the development of theme-related funds, we have developed a research service, which includes the identification of the main extra-financial risks and opportunities for that theme as well as a selection of companies to be included in the portfolio. Translation of extra financial data provider into up to date data.

Up-to-date company assessments: It is Inspire Invest’s added value to provide clients with up to date company assessments. Extra-financial research providers company assessments and scores are «static» as they are only updated once a year. Inspire Invest’s has developed a service whereby we provide clients scores reflecting the latest company behaviour and events which may have a material impact on the company. This service can be adapted regardless of client’s extra-financial research provider.

History Foundation for Business and Society starts a research project on corporate governance, among others in cooperation with the Global Corporate Governance Forum of the World Bank. Inspire Invest becomes a partner in this project and develops a corporate governance assessment tool which was used by IDEAM and by a number of universities (Universiteit van Amsterdam). IDEAM and Inspire Invest start to look into other issues, including environmental and social issues and set up the INAVAL think tank with the Foundation Franco-Norvegienne as sponsor. DNV and Inspire Invest acquire CoreRatings and guide its development into a risk-focused extra-financial rating agency. InSpire Invest takes over the research (non-solicited rating) part of CoreRatings from DNV and CoreRatings’ research team is merged with Innovest. Inspire Invest enters a partnership with Innovest giving global access to research and data, and develops for I.DE.AM a comprehensive research model including extra financial and corporate governance criteria. IDEAM and Inspire Invest are developing a business intelligence tool which aims at detecting early signals of ESG issues. IDEAM bought our rating activities in the UK.

About inSpire Invest

About inSpire Invest
About inSpire Invest

The mission of the InSpire Foundation for Business and Society (IFBS) is to promote the concept of sustainable development in business and industry. As a non-profit institution, it is funded through an endowment by InSpire and project grants provided by corporations, foundations, governments and international organizations.

It was originally founded in 1996 by the World Business Council for Sustainable Development (WBCSD) as the Foundation for Business and Sustainable Development, and served as the Council’s vehicle to promote the understanding of sustainable development and to encourage education and competence building. In 2001 it expanded its scope and became an independent foundation that received financial support from various international organizations and trusts, including the European Union, the UN and the World Bank.

Professor Jan-Olaf Willums, founder of the InSpire Foundation for Business and Society is the prime author of: The Primer for Responsible Investment Management of Endowments (PRIME), an initiative by the Bellagio Forum for Sustainable Development to ensure that the assets endowed to foundations will be invested responsibly in line with the foundations’ ethical and long-term sustainability objectives.

The aim of this Toolkit is to provide more clarity and greater understanding for all interested parties about how to better implement responsible investment practices.

PRIME Toolkit is intended for trustees, officers and directors of foundations and it addresses the following questions:

• Why should my foundation be interested in Responsible Investment at all?
• Should my foundation’s boards be concerned about how our endowment is invested?
• Which Responsible Investment approaches are most appropriate to our foundation’s overall mission and goals?
• Can a Responsible Investment strategy give returns equivalent to other investment approaches?
• What does this approach mean in terms of my fiduciary responsibility?

In 2004, the InSpire Foundation for Business and Society launched the research program INAVAL (Intangible Asset Valuation), which is studying the mechanisms of value creation and identifies the value drivers linked to intangible assets. This multiyear program is a cooperation among the Foundation for Business and Society, the Bellagio Foundation, IDEAM in France, DNV in Norway, and it also involves 120 master students from the Norwegian School of Management annually. Here is a link to Inaval 2005 Review:

InSpire Holding The core investment entity of the Group is InSpire Holding which has in most cases controlling interests in the various entities of the Group. It also holds financial investments and direct private equity investments in among others fish-farming and Nanotechnology. InSpire Holding is seed and “angel” investor to new early stage projects, and projects in developing countries. InSpire Holding is controlled by Nordic Enterprise, the investment company of the Willums family, which also provides funding for the InSpire Foundation for Business and Society. About inSpire Invest

Although there is an increasing awareness of ESG (Environment, Social and Governance) issues among financial analysts, there is still a lot of confusion with regard to the materiality of these issues on companies’ valuation and how to integrate them into their analysis. Inspire Invest core competency is to bridge the gap between extra financial and corporate governance research providers and the end users in the investment community. Our objective is to assist fund managers to translate and integrate extra-financial research into their investment strategies.

InSpire Invest is a dedicated advisory group specialised in extra-financial and corporate governance company assessment. Together our team members combine experience within the investment services sector and expert knowledge in ESG and sustainable development themes.

Our focus is on defining in-depth sector risk and opportunity profiles for ESG issues, enabling our clients to bring into perspective analysis received from research providers. Inspire Invest entered into a long-term partnership agreement with a research provider, through which we have access to a global coverage of company ESG performance information. However, our services can also be adapted to clients with existing research provider contracts. This process allows us to develop a third-generation interpretative analysis of corporate risks and opportunities related to intangible assets.

The basis for this in-depth analysis is the continuously improved and developed through the research think-tank INAVAL (the Intangible Asset Valuation Program), a multi-year research effort initiated in 2004. The aim of the INAVAL research project is to define the impact of environmental social and governance issues on companies’ intangible value and the integration of the findings in traditional valuation techniques.The founding members of INAVAL are Inspire Invest, DNV, IDEAM and the Foundation for Business and Society through which academic institutions like the Norwegian School of Management (BI) and HEC (Paris) participate. The MISTRA foundation and Innovest are also contributors and partners on specific projects.