Drone footage of Atlantic Forest in Brazil. Image by FG Trade

Can the power of the financial markets be harnessed to address environmental issues such as ocean conservation? LUX talks to Jörg Eigendorf, Head of Corporate Communications, Social Responsibility and Sustainability at Deutsche Bank, about the unique role banks can play to incentivise sustainable investment and consumption

Jörg Eigendorf. Image by Mario Andreya / Deutsche Bank AG

LUX: Sustainability can be an empty word in business. How can you make it meaningful?
Jörg Eigendorf: Put simply, as a company we need to demonstrate that we are willing to integrate it in all parts of our value chain. This starts with our own operations. At Deutsche Bank we made a pledge in 2007 to become carbon-neutral and achieved that goal in 2012, but we have worked continually since then to cut our energy consumption – as well as our usage of water, paper and other resources – and this year we challenged ourselves to get all the electricity we use from renewable sources by 2025. But this is only the minor part: banks also have an additional responsibility, in that we facilitate other forms of business, which can themselves have a positive or negative impact on the world. This is where environmental, social and governance (ESG) principles and practices come into play.

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LUX: ESG investing is in fashion right now. What makes it more than financial jargon?
Jörg Eigendorf: It is already much more than a new piece of financial jargon. It’s a concept that has gone from niche to mainstream in recent years. Investors increasingly want to ensure their money is used to support businesses that care about sustainability. ESG gives them a way to compare and contrast investments based on factors that go beyond financial performance – without sacrificing it. So it really has the potential to transform the whole economic system in a positive way. This is why we feel confident that we will be able to increase our volume of sustainable financing plus our portfolio of ESG investments under management to over €200bn by 2025 – to play our part in contributing to this momentum.

LUX: Can ESG really incentivise better behaviour in the private sector?
Jörg Eigendorf: I’ll give you a practical example: in Singapore, we’ve just provided a $25m ‘sustainability-linked’ loan facility to an agricultural company. If the company meets a set of agreed sustainability targets over the three-year term of the loan (and if these are verified by an external auditor), the interest rate payable on the loan will be lower; otherwise it will be higher. This kind of innovation sets a great example and shows how we can help companies incentivise themselves to do better. Of course, progress is often relative, and in some industries all we can do is try to make things better than they were before, consistently. We can’t stop fossil-fuel usage overnight because we don’t have the means to compensate for this yet. But we need to drive and facilitate change. In the almost five years I’ve been with Deutsche Bank, I’ve realised how important banks are to this transformation process, and that we have a big lever with which to make a real difference.

Read more: Marine biologist Douglas McCauley on environmental philanthropy

LUX: What are the main challenges involved in building sustainability into financial products and services?
Jörg Eigendorf: The biggest is probably asset origination – that is, the process of identifying and acquiring investments that offer ESG benefits alongside traditional benefits such as capital growth. It starts with the question: what is sustainable? This is why we have just published our sustainable finance framework which is closely aligned with the new EU taxonomy on financial services. We need this transparency to give our businesses, as well as investors, some certainty in times when demand for ESG products from both private individuals and institutions is outstripping supply. Having said this, it is still difficult to verify that a particular asset meets particular ESG criteria. There is not enough data, there is not enough clarity and there is not enough consistency in the way that ESG criteria are defined and compared. That’s why we’re helping to develop industry-wide ESG standards – for example, working within various initiatives to develop a framework for comparing and contrasting ESG products.

LUX: What ESG issues do you feel passionate about personally?
Jörg Eigendorf: I feel very strongly about the overconsumption of natural resources, and especially how we treat animals. We are eating up this planet and we should stop it. Every German consumes around 61kg of meat a year on average, and the suffering associated with this is unbelievable. Pigs have much DNA in common with humans. They feel emotions just as we do. So from my point of view it cannot be right that we treat them as a commodity. Meat production is also making a significant contribution to climate change – for example, as rainforests in Latin America are razed to produce grazing land for beef cattle. I also care a lot about ocean conservation, marine ecosystems are vital for the world and the climate, so we cannot risk their collapse. These are matters of life and death for humanity as a whole.

LUX: What’s the future for ESG?
Jörg Eigendorf: It is already mainstream and will become more important every day. The Covid-19 crisis, while terrible in many ways, has also made us aware of how things need to be different. We’ve suddenly become more aware of our environment. We’ve realised that we don’t have to be on the run all day long, travelling left and right, and that in many cases a video conference is enough. I am convinced that this crisis will lead to a change in behaviour and creative solutions. And I think we will be less likely to go back to the old, more inefficient world as a result. At the same time, greater awareness of ESG investing will lead to a virtuous circle in which economic growth is coupled with environmental protection – provided we in the financial sector play our part in leading the development of ESG standards and solutions. We welcome the idea of our clients and investors pushing us to do better: there must be a mutual understanding to drive change.

Find out more: deutschewealth.com/esg

This article originally appeared in the LUX x Deutsche Bank Wealth Management Blue Economy Special in the Autumn/Winter 2020/2021 Issue.

Sea2See turns discarded plastic fishing nets into high-fashion eyewear

François van den Abeele had a dream – to turn discarded plastic fishing nets into high-fashion, hand-finished eyewear. People once laughed at him, but now, as he leads a swell of eco-entrepreneurs, his products are in increasing demand around the world. He tells LUX how he created an ecosystem around his brand, Sea2See

François van den Abeele

“My love of water sports nurtured a passion for the ocean and brought me to focus on the problem of plastic contamination in our seas. I had spent a lot of time reading about the degradation of our oceans, the problems surrounding marine plastic, and about the brands trying to implement circular economy in the way they produce.

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“I began to investigate ways of using plastic waste as a raw material to produce something that people would use and potentially wear. Sustainability is non-existent in the optical world; the main raw material used is plastic and 40 per cent of the population wears glasses. It was a perfect win, win, win.

“All this, along with a personal motivation to change my profession and do something positive with a sustainable impact culminated in the creation of Sea2See Eyewear.

“We have agreements with 27 ports in Spain, six in France and now we are starting in Ghana. We collect on average half a ton of plastic waste per day that we recycle to produce all of our optical frames in Italy.

“The market is changing, and consumers are more and more worried about the future we will leave to our kids. The proof is that in three years we are being sold in more than 2,500 optical stores across Europe and North America, and the numbers are growing.

Read more: Highlights from the 3rd edition of NOMAD St. Moritz

“People laughed at me four years ago when I had the idea of producing glasses with recycled marine plastic. Today we get calls daily from stores or brands that want our product or to collaborate with us.

“There is a global awareness that we must treat our planet better and consume differently, and Sea2See, thanks to its customers, is doing its part. Sustainable glasses will not change the world. People that wear them will.”

Discover the collections: sea2see.org

This article was originally published in the Spring 2020 Issue.

Beauty, Olafur Eliasson (1993)

Standing in front of Olafur Eliasson’s Beauty, a shimmering mist suspended by light, is both a grounding and unsettling experience. While the serenity of a rainbow is amplified when viewed in focus, the presentation of this phenomena in isolation provokes an eerie sense of time frozen. Similarly, Moss Wall, the 20m wide mass of breathing Scandinavian reindeer moss, offers a magnified impression of its intricate and abundant surface. However, its preservation around wire mesh in the white cube space of a gallery is a sombering reminder of the fragility of the natural world. This exploration of time, atmosphere and nature is at the core of Eliasson’s work, along with an unwavering determination to protect the planet. He returns to the Tate Modern with his retrospective In Real Life following Ice Watch at the end of last year, which saw 24 blocks of Greenland ice melting in the London winter sun.

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Din blinde passager, Olafur Eliasson (2010). Photo by Anders Sune Berg

However, climate change, as the show demonstrates, isn’t Eliasson‘s sole preoccupation. The Danish-Icelandic artist is also fascinated by manipulating perspective. One whole room is dedicated to his kaleidoscopes, whilst In your uncertain shadow uses colourful beams of light to multiply the viewer’s silhouette in a huge projection against the gallery wall.

Big Bang Fountain, Olafur Eliasson

In perhaps his most powerful piece, Din blinde passager visitors enter a 39 metre passageway filled with dense, luminescent fog. With an inability to navigate visually, you become intensely aware of the other senses: the damp air on your skin, the sweet taste of vaporised food colouring and the sound of disembodied voices. You emerge exhilarated by the shared sensory experience and with a renewed focus on your body. It is in moments like these that Eliasson’s work is at its most powerful and transformative.

James Houston

Olafur Eliasson: In Real Life runs until 5 January 2020 at Tate Modern, London. To book tickets visit: tate.org.uk

Lenny Kravitz performs at the 2017 Leonardo DiCaprio Foundation Gala, with DiCaprio (centre) and Madonna (right)

Whether painting, music or immersive experiences, artists – and the art they produce – play a huge role in raising hundreds of millions of dollars for some of the world’s most deserving charities, says art auctioneer and LUX contributing editor Simon de Pury

Simon de Pury

I’ve done the auction for the Leonardo DiCaprio Foundation Gala for the past four years in St. Tropez. It has raised in excess of $100million for environmental issues. You know, we can try to save everything else, but if we don’t have a planet, there’s not much to save, so I find it very surprising that what should be probably our primary, main concern is just so low down the pecking order of people’s preoccupations. But Leo DiCaprio is probably the most important fundraiser for environmental issues in the world. It’s the longest auction of any auction that I do – people arrive at nine o’clock and it goes on till past 2am. So it’s a real marathon, because not only are there top artworks (he’s a very active collector, so all the artists donate their best works), but also experiences. There are once-in-a-lifetime experiences like going to the gym with Madonna or playing tennis with Federer.

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And the evening is interrupted by little musical intermezzos. So, last year Madonna gave a fantastic concert halfway through, and then the whole thing ended at 2.30am with an incredible concert by Lenny Kravitz. Once that was finished, the after-party kicked in with DJ Cassidy and there was the after-after-party at the home of Dmitry Rybolovlev. We were the first to leave at 7am. But the party was in full swing!

There’s more money in that tent than at any evening in New York. The combination between high-net-worth individuals – Russian oligarchs, people from the Middle East, former Soviet states, Latin America, America, Europe – mixed with top actors and top models, creates an electric, exciting atmosphere.

The other one that is very exciting is the amfAR Gala in Cannes, which always takes place at what I view as possibly the most beautiful hotel in the world: Hotel du Cap-Eden-Roc. The artworks are displayed in an incredible way. Coming out of the hotel, you see an alley leading down to the sea, and at the bottom of the alley is the star work of the auction. One year they had a Damien Hirst, the famous mammoth; another year, a huge sculpture by Jeff Koons. So, you can really show the works in a spectacular way, and once the guests come they all mingle on that beautiful alley.

The artist Joe Bradley – there is a long waiting list for his work, and he had a big show at Gagosian in Geneva – donated a really fantastic work for the auction. And it made €750,000, which is basically the price you have to pay if you’re lucky enough to be given the chance to buy one.

The other highlight of amfAR every year is when Carine Roitfeld curates a fashion show. And this year it was with 31 different designers, and she picks the theme, and she picks the dresses. One year it was all in gold; one year it was multicoloured; one year it was red. And then all these top models come down the stairs and walk up and down the catwalk and the stage with the most unbelievable music, and so it creates a fantastic atmosphere. And then, once all of the models are on stage, I come up and stand in front of them and start the auction. That’s by far my favourite moment as an auctioneer in any auction.

Supermodel Winnie Harlow at amfAR in Cannes this year

This year was the 25th anniversary of amfAR to raise money for Aids. Another Aids-related charity I’ve done auctions for is the Elton John Foundation. He invites 70 or so people to dinner in his home, outside London. It’s very intimate. He usually pairs up with another musician – John Mayer, Annie Lennox, Andrea Bocelli – and then he comes and plays himself. It’s really nice if you’re invited to a private dinner, so people pay a lot of money for their seat there – much more than they would for a larger gathering. During those evenings, we just sell three or possibly four items. So the main way of raising funds is people getting there.

The Elton John Foundation is one of the most effective foundations on the calendar in terms of research for Aids. He has been relentless for years and years with his Foundation, raising funds. It is remarkable just to see what he has done and how much he gives of his own persona, how much he gives of his own funds.

Read more: Behind-the-scenes of Maryam Eisler’s latest book “Voices East London”

For Aids there’s also the MTV RE:DEFINE annual charity auction. I do it every year in Dallas, in cooperation with the Goss-Michael Foundation, founded by George Michael and Kenny Goss. That is also a fun event because you always have each year an artist that is being honoured. This year it was Tracey Emin.

And the Robin Hood Foundation Benefit in New York raises the biggest amounts; you just have all these hedge-funders in the room and they say, ‘Now we’re going to put the numbers there… please put your pledges,’ and then bleep. ‘You’ve just raised $72million dollars, thank you so much.’

In terms of the cancer charities, there is Denise Rich, who founded Gabrielle’s Angels in New York. I do the Angel Ball auction every year. She takes the Cipriani Downtown, 650 people for a seated dinner. She had the whole Kardashian family coming last time – the whole family except Kim – and they are very close to her, which is very rare. One year she had Pharrell Williams performing and suddenly he said to me, “Simon, come on stage. I want to sell a dinner with me!” And all the women became crazy, screaming. Then Usher said, “I’ll join the dinner as well!” And that second impromptu auction raised more than the regular auction.

The Beyeler Foundation Summer Nights Gala in Basel, Switzerland, is the most original of any fundraiser, because director Sam Keller asks one artist to take over the whole museum and transform it for one night, which means that only as a guest do you get to see what the artist has done.

One year it was Olafur Eliasson and you arrived and everything was black and white, as if we were in a black and white movie. We sat down and started eating the food – black and white. It tastes bizarre when you don’t see the colours. Eliasson said, “Now you know what the world looks like without colour.” And then there was a total blackout and he said, “Look under your chair.” And everybody had this little lamp, and he switched a button and suddenly all the colour came back. The food started tasting very, very good the minute you saw the colour. It’s the most bizarre experience ever. He also did artworks just for that night, paintings all in different colours. All this was created just for the night.

I also love doing the New Museum Spring Gala in New York, because of the artists who attend. Very often you sell great art at these events, but you have no artists in the room – maybe one or two. But the New Museum event is carried by the artists. This year were three of my favourites – all women. Julie Mehretu, Cecily Brown and Elizabeth Peyton, who is my favourite portrait artist today. If you had to choose who would be your dream person to do your portrait, she would be top of my list, and the New Museum had shown a mid-career introspective of her. Besides that there was new work from Jeff Koons, from George Condo… there were something like 55 artists in the room.

In terms of the contemporary art world, the New Museum Spring Gala is possibly the most exciting one, because personally I always find that the most rewarding thing in terms of what we do is the contact with the artists themselves. Nothing is more stimulating. They have such a fresh way of looking at everything. And that’s what I love, because, after all, without the artists all the rest is meaningless.

Simon de Pury is an art auctioneer and collector and the founder of de Pury de Pury. Find out more: depurydepury.com