E2 and California's Green Wave Initiative

"E2 served in a critical advisory capacity on Green Wave, from the earliest discussions to the actual proposal of the initiative. The organization’s resources and expertise were invaluable in helping to shape the Green Wave concept, by bringing together a wide range of business and environmental interests and experience, which we were able to draw upon in drafting the environmental investment proposal. E2 serves a unique public purpose by advancing the economic benefits of good environmental policy." Phil Angelides, California Treasurer

California Treasurer Phil Angelides launched a four-pronged plan to improve long-term financial returns of the State's two largest public pension funds – the California Public Employees' Retirement System (CalPERS) and the California State Teachers' Retirement System (CalSTRS) – by calling on the funds to commit $1.5 billion to investments in environmental technologies and environmentally responsible com- panies. (For more information please see: www.treasurer.ca.gov/news/greenwave.htm.)

E2 helped bring this concept to fruition by: 1. Bringing the right people to the Table: E2 convened five roundtable discussions with the Treasurer's office, CalPERS, CalSTRS and our network of entrepreneurs, venture capitalists, investment bankers, marketing professionals and public policy experts.

2. Identifying opportunities and barriers: Pooling our expertise and networks, we were able to point out and problem-solve possible barriers to the initiative.

3. Accelerating the Process: E2's input and research helped the state bring Green Wave from a concept to a board vote in just 10 months.

TIMELINE FOR GREEN WAVE E2 ACTION April 19, 2004 CalPERS votes to invest up to $500 M in ¾ April 15, 2004 environmentally screened stock funds. Roundtable: E2 members discuss private investment portion of plan with board mem- March 15, 2004 bers from CalSTRS and CalPERS, offer perspectives on market and investment vehicles. CalPERS Investment Committee votes unanimously to invest $200 M in private ¾ November 5, 2003 equity in environmental technology sector. Roundtable: E2 is represented among 15 government, labor and nonprofit stakeholder February 3, 2004 groups at a meeting to review and comment on the Treasurer's policy proposal. Treasurer Angelides announces Green Wave; E2 members speak at press conference. ¾ September 23, 2003 Roundtable: E2 members in New York convened a group of entrepreneurs, private funders, investment bankers and others to discuss the initiative with Treasurer Angelides.

¾ June 26, 2002 Roundtable: E2 members discuss "triple bottom line" opportunity and think through de- signing a fund that would be good for CalPERS investors, California, and society.

¾ May 5, 2003 March 2003 Roundtable: E2 Members discuss views on issues and opportunities in creating a Treasurer inquires about E2's interest in CalPERS investment fund focused on environmental businesses, and identified four rec- sponsoring a roundtable discussion about environmental investment opportunities. ommendations for areas where financial leverage could accelerate market.