istock_000003160975xsmall1Contributed by Ann Marie Orchard (New York City)

 

The US Congress appears poised to pass carbon cap and trade legislation, perhaps as soon as the third quarter of this year. Although there has been a market price on carbon in the UK and Europe for some time now, the US has no broad mechanism for factoring in an implicit price for carbon.  Until now,  efforts have been limited to regional attempts to develop progressive responses to climate change risks, in the absence of formal policy. But, the world is changing, and the heightened awareness surrounding sustainability is making an appearance in the asset management industry. 

 

In the world of those who manage money or other assets, sustainability has a specific definition: the integration of environmental, social and governance (ESG) factors into the investment decision-making process.  How does this particular application of sustainability enhance risk assessment, and how can this enhanced analysis allow managers to seize opportunities and manage risks that are associated with these emerging ESG factors?  

 

The beauty of practicing sustainability in the setting of an asset manager is that you have the opportunity to learn and look at major emerging issues across diverse industries and sectors, as that is how the institutional business is generally structured.  Managers, initiate manage,  and close out positions in many sectors, unless they are focused more exclusively by their investment mandate on select industries.

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Contributed by Caroline Ceniza-Levine of SixFigureStart

 

jobsearchAt a recent virtual coaching workshop, an attendee asked about meeting executives.  I answered with advice on how to research decision-makers within a company and how to approach them, using online networking as the example.  But then the follow-up question indicated that she meant something very different:  where do the corporate decision-makers hang out?

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istock_000004185698xsmall1by Elizabeth Harrin (London)

More than 700 women gathered at W-Tech in London, UK, on June 24th to take part in the one day recruitment, career development and networking event for women interested in working (and staying) in IT.

“It was a really buzzy atmosphere,” said Maggie Berry, director of womenintechnology.co.uk.  She admits to being “frazzled” at the end of the event, and it’s hardly surprising given the amount of energy and effort poured into the planning.  This is the second time Berry has planned for W-Tech – although only the first time the event has taken place.  W-Tech was originally scheduled for February this year but it coincided with the heaviest snow fall London had seen for decades and unfortunately the event had to be cancelled as the capital shuddered to a freezing halt.

W-Tech aimed to connect the most well-known technology employers with women working in, or who are interested in working in, the IT profession. It was billed as “the networking event of 2009 for everyone wanting to learn out more about women working in, achieving in and staying in the IT workforce.”  Many major recruiters were in attendance including Microsoft, Bloomberg, the British Library, the BBC, HP, Sky and GCHQ. 

Berry had a chance to speak to most of the exhibitors and sponsors and said that many of them reported having “good conversations with interesting and intelligent women,” which she sees as testament to the high calibre of women who attended.

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As part of our on going Voices of Experience series, The Glass Hammer’s managing editor Pamela Weinsaft spoke with this powerful woman leader from KPMG on her climb to the top, barriers to and her passion for championing women in the industry.

anand_kapila1As a computer science major at Michigan State, Kapila Anand took an accounting course because she needed something to help bring up her grades.  And the rest, as they say, is history. 

Ms. Anand, who is now the National Partner-in-Charge, Public Policy Business Initiatives at KPMG, said “I enjoyed accounting, kept taking classes and ultimately got an internship which was very lucrative—much more than a computer science internship would’ve been—and decided I liked it as a career.” She continued to work throughout college, going from internship to internship.  Since all the internships were in accounting, she ended up earning both her undergraduate and master’s degrees in accounting in just 5 ½ years.

When she moved to Chicago, she was offered an opportunity to join KPMG. Within six months from her start in the audit practice she became a specialist in real estate and hospitality.  She explained: “For my very first job at KPMG, I worked for a partner on a particular engagement.  The next engagement did not have a senior associate assigned and, since he thought we were a good team, he asked if I had interest in real estate and hospitality. The more I thought about it the more I realized that the industry fit well with my personality as I am an entrepreneur at heart. I love working with people and clients in real estate and hospitality because they have great people skills.  It seemed like a great match.  After that, I moved very quickly up into the supervising senior ranks so I was managing people by the end of my first year. I had my opportunity and I grabbed it.”

She continued to rise up in the ranks in the audit practice over the next ten years, ultimately becoming the first woman in the country from the Real Estate and Hospitality sector to be named a partner.   But she still had more she wanted to do. “In public accounting at the time, your primary  goal  was to make partner. But once I got to be partner, I asked myself, ‘ok now I made this, now what?’  My own goals were to work in areas in which I would continue to learn because it was almost like if I stopped learning—if I did the same thing over and over again—I just knew that it wouldn’t be exciting and that at some point in time I’d have to move on to something else.”

In addition to the audit work, she began to take on the “lead partner” role, acting as an account executive responsible for developing client relationships and client delivery teams. “That kept me going for a few years, until 2000, when I realized there was an opportunity to take a little bit of a risk and work in our advisory practice. And, so, within real estate/hospitality, I moved from the audit practice into the advisory side of our business.”   The move raised a few eyebrows.  “My husband said to me, ‘You have this great responsibility and you love it, why would you go into something else?’ And I said, ‘It just will keep me on my toes.”

She explained: “I’ve never wanted to just get comfortable with what I’m doing.  I am  always looking for the opportunity to help me grow.  All my people laugh because I’m always telling them, ‘If you’re not growing, you get stale.’” 

She credits KPMG for providing her with continuous opportunities to grow. “I was selected to be in a leadership development program.  It was very pivotal for me: being selected for the leadership class and selected to network with some of the great people in leadership today in our firm…That particular leadership class was important for me in that it was the leadership forum that came up with the work-life work environment initiative, which also became the KPMG network of women.”

Anand champions the women’s network because she remembers the challenges she faced at the beginning of her career. “When I started in the profession, there were so few women.  People would tease us if we were sitting next to each other. Now if someone says anything like that, all the women go sit next to each other just to make a point.  A bit of the revolutionary side of me coming out,” she laughed, “But, at the time, each of us as women, would do our best to network only with men. We weren’t networking with each other. I  focus on networking with men and women now.” 

Despite past challenges, Anand, who has been sitting on KPMG’s Board of Directors since 2005, doesn’t believe there are permanent barriers to women in the profession, adding that it’s often the women that hold themselves back.  “There are always going to be some barriers but they are not necessarily permanent.  I think that my Board representation is an example of a position that I would have not have even thought to aspire to it until one of my mentors said that I’d be a great board member and that I should throw my hat in the ring, And I sort of looked at him like ‘who are you talking to?’ 

She continued, “I will tell you that if you had asked me years ago, I would have said that it is not something I’m qualified to do.  So I think that the barriers may often be self created.”

Almost two years ago, Anand threw her hat in the ring again, this time to help build and lead the private equity practice. “And as my husband said, ‘You saw a cliff and jumped right off it.’  But luckily I had a parachute: the people around me, both in and outside of the firm [to whom I turned to get up to speed and get contacts.]  My career successes all go back to networking and mentors.”

She does point to two factors—work-life balance and a lack of female role models—that are challenges for women, albeit surmountable ones. “When I look at the women I surround myself with, I still think work-life balance is a challenge in a client service business.  But there are a number of support systems that are  in the firm today that weren’t there five years ago, so it is becoming easier.”  She continued, “I also think one challenge still exists: there aren’t as many female role models in leadership as one would want to see.  So that’s why I belong to a women corporate directors group.  Even there we talk about how to get out and make sure that other women see us in the roles.  It is just so important for other women to be able to see us and say ‘if she can do it, I can do it.’” 

As for where she sees herself in the future, she said that while she tries not to put up any barriers, she does have certain criteria that must be met.  “There are some things a new job must offer,” said Anand,  “It has to be challenging. I must be able to continue to grow. And I need to continue to be able to give back by developing and mentoring people.  But I love what I do today and if I’m still doing it five years from now I’d be ok with that.”

Martin Mitchel of CTGContributed by Martin Mitchell of the Corporate Training Group   

In case you were too busy to have kept up with all the news, contributor Martin Mitchell has gathered some important market events from last week to help you start this week well informed:

Mergers and Acquisitions

  • Mining company Rio Tinto agreed to sell part of its Alcan packaging unit to Bemis of the US for $1.2bn. Bemis will pay $1bn in cash and a further $200m in shares. The sale price represents 7.2x 2008 EBITDA and was structured to enable Bemis to preserve its investment grade rating. Bemis management said that if it had added more than $1bn in debt, the rating would have been in jeopardy.
  • AIG, the US government-controlled insurance group has rekindled talks with MetLife about selling American Life Insurance Company. The sale was first discussed earlier in the year, but broke down on the issue of price in difficult credit markets. However, with AIG owing the US taxpayer $100m and under pressure to speed up disposals, the sale talks have reopened. It is thought that the sale price could reach $15bn.
  • UK property company Segro is getting closer to acquiring rival Brixton in a deal valuing the target at around £107m. Brixton has net debt of around £862m and is facing a potential breach of a key covenant test in relation to loan-to-value on July 31st. UBS and JPMorgan Cazenove are advising Segro, Citi and Nomura are advising Brixton.
  • Owner of British Gas, Centrica has bid £1.3bn for North Sea oil and gas company Venture Production. Read more

Introducing our new series –  London’s Queen of the City column – written by our eyes and ears across the Pond.  In this installment, the Queen takes on the current economic crisis, talking about its effect on the Square Mile (a/k/a London) and the need for constant vigilance.

Early Morning View of Big BenWriting about City folk in general and bankers in particular has been a gruesome gore-fest lately. Ever more lurid stories of greed and excess and jaw-dropping incompetence have graced broadsheet, tabloid and web pages alike for months on end.  One thing the Great British Public fail to forgive is being taken for a ride and, between the banks and the parliamentary expenses scandals, it’s been a helter-skelter rollercoaster ride all the way. 

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By Pamela Weinsaft (New York City)

On June 30th, Goldman Sachs’ second annual “Brokering Change: A Wall Street Multicultural Women’s Exchange” brought together women of color from firms on the Street to discuss the current financial crisis, the future of financial services, and the role that multicultural women leaders can play in the recovery and beyond.

The conference began with an entertaining keynote address by Goldman Sachs’ Global Treasurer Liz Beshel, who shared the story of the impact of the financial crisis on Goldman and her role in Goldman’s response.   She talked of the two crucial weekends last September, saying that Goldman convened a team on the first weekend of the 13th and 14th to deal with what was going on “in other people’s firms”, i.e., Merrill Lynch and Lehman.  “I spent the weekend trying to figure out what was happening in our industry while writing my daughter’s applications for private school in NYC.   The juggling of work and life in action,” she laughed. 

The second weekend was different, however, because this time she had to deal with growing concerns about Goldman.  “Going from five investment banks to two is a pretty major reduction in an industry.  So we reconvened, this time to deal with the crisis for us.   I viewed the concerns as unwarranted at the time because we had way more cash than we thought we needed for the risk on our books and we were actually making money.”  Beshel continued, “But then our stock price started declining rapidly and you heard people on CNBC talking about our impeding demise, and some people started to believe it.” 

The firm had three teams involved: strategy, equity and liquidity; Beshel was on all three teams.  She joked, “I spent most of the weekend on the elevator going from one team meeting to another, which was great because part of the time I was hyperventilating in fear between meetings.”  

As to lessons learned from the crisis and Goldman’s response, Beshel said, “You have to understand, focus on and preserve what is most important to you. For us our independence as a firm is very important… if you know what is really important you try to find a solution that preserves that.” She also stressed the value of diversity and teamwork.  “We had people from all over the firm – every business, different experiences and backgrounds – and that is what I think is the critical and differentiating factor was for us: the power of the team.”  She acknowledged the importance of creativity and communication as well.

Beshel concluded her remarks with some thoughts on work/life balance, saying: “Your career is a marathon not a sprint. You’ve got to love [your job] but you’ve got to find ways to escape it because you can’t keep that level of intensity all the time.  You‘ve got to find something that is important to you outside of work. You cannot have it all.  You’ve got to prioritize ruthlessly in both your personal and professional life.”

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As part of its ongoing Movers and Shakers series, contributing writer Tina Vasquez spoke with Teofla Rich, an executive woman in private banking about her climb to the top of the banking and financial services industry.

teofla_rich_apr_0911Integrity is something that comes up often in conversation with Teofla Rich. Rich, senior vice president/manager of private banking at Torrey Pines Bank in San Diego, places a refreshing amount of importance on integrity. According to the certified financial planner, the foundation of Torrey Pines is integrity, knowledge, professionalism, and fun, which falls perfectly in line with her beliefs as a financial expert and business woman. “You have to have integrity in all that you do: with your fellow associates and clients and with what you represent, sell, or promise,” Rich said. Read more

istock_000002769502xsmall1by Elizabeth Harrin (London)

This is the time of year when we dredge up those objectives documents we produced with our managers back in January and assess whether we’re on track.  The half-year review process differs from company to company, but chances are your boss will be asking you if you’re going to hit your targets for 2009 – and if you haven’t made much progress so far then the next six months are going to be tough.

Here are five tips for preparing for your review:

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Contributed by Caroline Ceniza-Levine of SixFigureStart

jobsearchAt a recent workshop, an attendee asked about what to do about her low GPA and her resume.  For recent graduates and current students, the GPA is standard on a typical resume so it’s a question worth answering.  But even for more experienced hires, where GPA matters less if at all, this question is still relevant because it speaks to what to do if you have any potential red flag on your resume that you feel obligated to disclosed (e.g., a gap in employment).  How do you address possible red flags on the resume?

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