Taking Inventory: The State of Sustainable Investing

Beyond Carbon

In their inaugural Beyond Carbon episode, Georges Dyer (Intentional Endowments Network) and Chris Ito (FFI Solutions) reflect on COP27 and discuss what makes them hopeful, and skeptical, about the future of sustainable investing. They also provide a preview of future episodes.

Highlights include news and activities across the investment landscape that both support and give pause to the notion that sustainable investing will continue its growth trajectory.

• Supporting factors:

• The increasing number of institutions who have committed to “do something” whether it be engage, divest, integrate ESG, align portfolios with net zero targets, or incorporate DEIJ.
• Significant momentum in market-driven shifts, - the passage of the Inflation Reduction Act in the US.

• Challenges slowing implementation:

• Lack of common, generally accepted definitions for the various approaches to sustainable investing. The recent anti-ESG attacks highlight the lack of understanding.
• Data quality and reliability that preventing investors from taking action.
• Uncertainty around whether sustainable investing is going to help long-term risk-adjusted performance.

• Future Episodes - Guests (and perhaps skeptics) that will give perspectives on these and other debates that are emerging among capital allocators:

• Ecomodernism vs. environmentalism.
• Green growth vs. de-growth.
• Are carbon capture technologies a solution or greenwashing?
• What about carbon offsets?
• And are fossil fuel companies really transitioning?