• Steven Bowen

The Sustainable Investing weekly blog: What's it all about ?

If you don't know where you are going, every road will get you nowhere - Henry Kissinger

 

With so much noise around ESG and sustainability, its perhaps not surprising that many companies and investors start at the end of the process, what projects, investments and funds should I invest in.


We argue that its important to spend more time on the earlier parts of the process, creating the building blocks of your sustainable investing strategy. More analysis is needed on the why and the what of sustainability, identifying the solutions, but looking at them "warts and all". So not just the opportunity, but also the risks and barriers, plus a proper discussion about the level of financial return you are seeking. Without this a sustainability strategy is about as useful as a chocolate teapot, opening organisation’s up to both value destruction and acquisitions of greenwashing.


Changes to the blog format

For this blog we have made a number of changes to the format. The first change is to shift to a total focus on investable sustainability transition solutions. What does this mean - only writing about solutions that can move the dial in terms of delivering the sustainability transitions, and that have the potential to earn you a fair financial rate of return. The second change is more detail on our top stories, so we can give a greater understanding of what these solutions might look like, how they could progress and what they mean for investors. And third, coming soon, we will be adding more sustainability themes. Over the coming weeks, in terms of improving distribution, we will be shifting to Substack, and adding a LinkedIn newsletter. Remember, you can read our archive of weeklies here


Who is this blog written for?

Its for the generalist, who is involved, one way or another, in making decisions about long term sustainable investments. You could be a board member or in management, you could be running a family office, endowment or charity, or you are a HNWI. Plus, the advisors to any one of these groups, so in wealth management, investor relations or corporate communications.


What we offer you.

Weekly insights into what investments could really make a difference, so solutions not problems. We look right across the sustainability themes and asset classes. This is not about what stocks or bonds to buy now or what funds to invest in. That is the home turf of investment banks, brokers, advisors, and asset allocators. Our blog is more about understanding the drivers of the solutions, the pro's & cons, the barriers to implementation and the trade-offs they will bring. Leading to what issues you need to think about, and what questions you need to ask. These are the building blocks of any sensible sustainable investing strategy.


Time horizon

Which brings us to time horizon. Our sweet spot is between two to three years and ten years. So, just beyond the normal forecast period of investment banks, and still within the sensible range for corporates, family offices and endowments (our long term investing community). We think this is an under covered space from an investing perspective. A lot of material is written on the near term opportunity, for instance, what the latest US "Inflation Reduction Act 2022" might mean for the next quarter or next year. And a lot of reports are published on why, if only governments would provide subsidies, this or that technology could be massive in say 10 years plus. Both of these are important, but we argue that, if you care about investing in the solutions that will make a difference to the sustainability transitions, and make that difference soon enough, the key period is the one in-between. Its here that you will find the solutions that will become critical over the coming years, some will happen quickly, others will be more of a slow burn.

If this sounds interesting, and you want to read our blogs, they can be found here. Plus, we will shortly be shifting to substack and LinkedIn newsletters, with the eventual aim of offering a free blog and a more detailed subscription version (all for about the price of a couple of cups of coffee a week).