Presentation delivered by Simon Littlewood, President, SDG Global Group & CEO, Li Family Office at the marcus evans Private Wealth Managements APAC Summit 2019 in Macao

1. Behind the Face Value:
Driving Sustainability Finance to
Achieve Purpose Beyond Profit
Macau October 2019
SDG Global Group Inc
www.sdgglobalgroup.com

2. Overview
• What Is Sustainable Finance?
• Why Is It Important?
• The New Climate – Threat Or Opportunity For Businesses?
• Cooperation The New Model?
• What Are The Risks And Opportunities For Investors?
• Examples
• Facts And Fiction

3. Leaderships
Over 30 years experience in investment, finance, creating & growing businesses.
• Established first business in 1984
• Involved in stock market listings of businesses since 1990, on multiple stock markets worldwide
• Managed private equity investment funds & vehicles since 2002
Global experience
• Originally from the UK
• Lived & worked in Europe, North Asia, S.E Asia, Africa, the Middle East & North America;
• Investing in China since 1990’s
Simon Littlewood Founder & CEO
Previously worked for & trained at leading global organisations:
• HSBC Group Structured Finance;
• Qualified as a Chartered Accountant (CPA equivalent) with PwC (London & Africa);
• Impax Capital – sustainable corporate finance & fund management;
• BDO Corporate Finance (UK & Europe)
• MA & BA in Law from Oxford University
Recognized expert
• Consulted by a range of companies, bodies and organisations
• Regular speaker at conferences worldwide, including at the UN Headquarters & European Parliament

4. What Is Sustainable Finance?
The provision of finance to investments taking into account Environmental,
Social and Governance (ESG) considerations.
It includes a finance component that aims to support
economic growth while reducing pressures on the environment
“Environmental Considerations” refer to climate change mitigation and
adaptation, as well as the environment more broadly and the related risks
“Social Considerations” refers to issues of inequality, inclusiveness,
labour relations, investment in human capital and communities
“Governance” includes management structures, employee
relations & executive remuneration, and plays a fundamental role
in ensuring the inclusion of social and environmental
considerations in the decision-making process

5. Set out by the UN in Transforming Our World - the 2030 Agenda for Sustainable Development
1. End Poverty
2. Sustainable
Agriculture & Food
Security
3. Health &
Wellness
4. Education
5. Women equality
& opportunities
6. Water &
Sanitation
7. Energy
8. Sustainable
Economic Growth
& Employment
9. Industrialization
& innovation
10. Reduce
inequality
11. Safe &
sustainable
communities
12. Sustainable
consumption &
production
13. Act to combat
climate change
14. Conserve
marine resources
15. Sustainable
land use & forests
16. Promote
peace & justice
17. Global
partnerships

6. Paris Climate Agreement (PCA)
• December 2015: 195 countries adopted the first-ever universal,
legally binding global climate deal
• Sets out a global action plan to:
– limit global warming to well below 2°C above pre-industrial levels &
pursue efforts to limit it to 1.5°C;
– strengthen societies' ability to deal with the impacts of climate change
– align financial flows with a pathway towards low-carbon and climate-
resilient development
• Countries submitted national climate
action plans.
– These are not enough to keep global
warming below 2°C

7. PCA - European Union Perspective
• Key targets the EU adopted under PCA for 2030:
– At least 40% cuts in greenhouse gas emissions (from 1990 levels)
– At least 32% share for renewable energy
– At least 32.5% improvement in energy efficiency
• To achieve it, the EU needs to spend an estimated additional €180bn a year
– adding the goals for the energy, transport, water and waste sector as a
whole, this number rises to €270bn.
• Action plan adopted by the EC March 2018 has 3 main objectives:
– reorient capital flows towards sustainable investment to achieve sustainable
and inclusive growth
– manage financial risks stemming from climate change, environmental
degradation and social issues
– foster transparency and long-termism in financial & economic activity
“Moving to a greener and more sustainable economy is good for job creation,
good for people, and good for the planet.” Frans Timmermans, First VP, EU

8. Why Is Sustainable Finance & Investment Important?
• It’s big
• It will affect your business, assets and life
• It’s not going away
• You can make money
• We need to do it

9. “This Decade is about our very survival” - Inger Andersen,
executive director, U.N. Environment, at Global Landscapes
Forum, New York 28 September 2019
“We have to conserve what is left – stop the bleeding – but also
give patient Earth … a blood transfusion.” Tim Christophersen,
Chair of the Global Partnership on Forest and Landscape
Restoration, September 2019

10. Businesses Need To Adapt
• Businesses can no longer function in the current global
environment without adopting ESG considerations
• Regulations
• Reporting requirements
• Consumers
• Suppliers
• Investors
• Green Finance

11. Cooperate, Collaborate
• Government, companies and investors are increasingly
working together to address major global challenges
• Information sharing
• Driving innovation
• Focus on opportunities that create long-term value for
business and society
• Meet financial needs

12. Risks & Opportunities For Investors
• How do you build an effective impact investment portfolio:
– Make returns
– Satisfy non profit objectives
– Attract more capital
• How do you protect existing assets?
– Intergovernmental Panel on Climate Change (IPCC) in 2018
warned of the necessity of limiting global warming to 1.5°C
above pre-industrial levels by 2030

13. I’m Alright!

14. Climate Change Impacting Value Of Existing Assets
• Shortage of raw materials

15. Generational Issues
• Younger consumers
• Wealth transfer

16. Incentives versus Real Business

17. Investment Opportunities
• Health
• Food
• Agriculture & Forestry
• Smart Cities & Technology
– Electric Cars - Urban farming
– Sustainable buildings - Smart systems
• Education
• Fintech & digital assets
• Energy & Resources
• Clean-up

18. Health Opportunities
• Aging • Prevention vs curing
• Sickening • Diagnosing
• Getting richer • Education & training
• Facilities

19. Investment Down The Toilet?
• 1 in 3 people globally lacks access to proper sanitation (Bill &
Melinda Gates Foundation)
– every $1 spent on sanitation on average provides at least $5 in
economic return

20. Food – Feeding More People, Safely, Sustainably
• Food scares
• Traceability
• Logistics
• Move away from meat
• Protein & animal feed

21. Agriculture
• 2 billion people worldwide depend on subsistence or smallholder
agriculture
• Agroecosystems comprise 30-40% of the Earth’s land surface
• soil is being lost 100 times more quickly than it is being formed in
plowed areas, and lost 10-20 times faster even on fields that are
not tilled
Opportunities
• Rising consumption
• Land
• Urban farming
• Micro finance
• Organic fertilizers

22. Land Restoration
• March 2019: the U.N adopted the Decade on Ecosystem Restoration,
devoting 10 years beginning in 2021 to building research, traditional
knowledge, finance, activism, consumer markets and public awareness
around the economic, social and environmental benefits of restoring
degraded landscapes
• Irrigation
• Organic Fertilizers
• Toxin removal

23. Forest Facts
• Forests cover 31% of the world’s total land area
• 1.6 billion people around the world depend on forests for their
livelihoods
• 300 million people worldwide live in forests
• More than 25% of the medicines we use originate in rainforest
plants, but only 1% of these plants have been studied for their
medicinal properties.
• Urban forests play an important role in improving air quality in
cities: can reduce air temperatures by up to 8 degrees Celsius,
• Estimated cost to restore a 350 million hectare portion of the
degraded forests: US$800 billion
– Estimated economic return of restoring it USD 9 trillion.
https://news.globallandscapesforum.org/38685/fast-facts-forests/

24. Deforestation: The Numbers
• Deforestation: around 15 billion trees each year
• About 30 percent of global forest cover has been completely cleared
and a further 20 percent has been degraded
• More than two billion hectares worldwide offer opportunities for
restoration---an area larger than South America. Most of these lands
are in tropical and temperate areas.
– One and a half billion hectares would be best-suited for mosaic restoration,
in which forests and trees are combined with other land uses, including
agroforestry, smallholder agriculture, and settlements.
– Up to about half a billion hectares would be suitable for wide-scale
restoration of closed forests.
• most of the land suitable for restoring forests is in 6 countries:
– Russia (151 million hectares) Australia (58 million)
– USA (103 million hectares) Brazil (50 million)
– Canada (78 million) China (40 million).

25. Forestry – Planting Trees To Capture Carbon
https://edition.cnn.com/2019/07/04/world/forests-capture-two-thirds-of-carbon-emissions-scn-intl/index.html
• Since the industrial revolution, humans have added around 300 billion tons of extra carbon
to the atmosphere
• restoring degraded forests all over the world could capture about 205 billion tons of carbon
in total. Global carbon emissions are currently around 10 billion tons per year.
• there's enough suitable land to increase the world's forests by about a third. That would
give the planet more than a trillion extra trees and 900 million hectares of additional tree
canopy, an area about the size of the US
• The best restoration projects out there that we know of are restoring billions of trees at 30
cents a tree. Scaled up to the numbers we're talking about it's $300 billion

26. Ethiopia – July 2019
https://edition.cnn.com/2019/07/29/africa/ethiopia-plants-350-million-trees-intl-hnk/index.html
Ethiopia's goal is to plant 4
billion trees during "the rainy
season" - May and October
4% of Ethiopia's land is
forested, compared to 30% at
the end of the 19th century
80% of Ethiopia's population
depends on agriculture as a
livelihood

27. Hoax Or Fact?

28. Like A Frog

29. Water Pollution

30. Disclaimer & Contact Information
This presentation is intended solely for information purposes.
This presentation contains information from a variety of sources that have not been
independently verified. No warranty is given nor made as to the accuracy or
completeness of the information provided.
No offer is made nor intended.
For additional information, please email info@sdgglobalgroup.com,
or visit www.sdgglobalgroup.com